SOUTH AFRICA, Johannesburg, 02 February 2026 – The new year has kicked off on a positive note for the South African automotive sector, with January vehicle sales reflecting continued momentum. According to the latest figures released by naamsa | The Automotive Business Council, total vehicle sales rose by 7.5% year-on-year, while passenger car volumes increased by 7.1%.
“The new car buying trend has continued unabated into the new year,” said Ryan Seele, executive committee member of the National Automobile Dealers’ Association (NADA). “This is a welcome and encouraging sign for the local motor industry at a time when both the domestic and global economies remain in a state of flux.”
Seele highlighted that January figures are traditionally influenced by December purchases, often supported by year-end OEM incentives. However, he emphasised that the current performance appears to reflect genuine market momentum rather than a seasonal anomaly. “January typically sees a moderation in volumes, but this year has clearly proven different,” he said.
Affordability Drives Demand
Demand continues to be strongest in the sub-R400 000 price bracket, underlining the importance of affordability in the current economic climate. At the same time, select luxury vehicles remain in high demand, with waiting lists indicating sustained interest in the higher-end segments of the market.
Retail sales channels performed particularly well in January, accounting for 85.4% of total vehicle sales. Sales to rental companies also contributed positively, representing 10.9% of overall sales and 13.3% of the passenger car segment.
Segment Performance Highlights
Total vehicle sales reached 50 073 units in January, an increase of nearly 3 500 vehicles compared to January 2025. Passenger car sales totalled 37 190 units, up 7.1% year-on-year.
Light commercial vehicles (LCVs) continued to perform strongly, with 10 996 units sold, marking an 11.1% increase from the same period last year. Medium and heavy commercial vehicle sales were more subdued, reflecting ongoing supply constraints in parts of the heavy commercial segment and a gradual shift of some freight volumes back to rail transport.
Economic Factors Supporting Growth
NADA also noted that the stable interest rate environment provided by the South African Reserve Bank continues to offer certainty to consumers and businesses alike. Any future interest rate relief is expected to further support vehicle affordability and reinforce the positive market momentum.
Additional relief for consumers is anticipated with a fuel price reduction effective from 3 February, which is expected to ease household budgets, reduce transport and logistics costs, and contribute positively to overall vehicle usage.
As South Africa’s automotive market enters 2026, early signs indicate a combination of affordability, consumer confidence, and supportive economic factors driving continued growth.
NADA, a proud association of the Retail Motor Industry Organisation (RMI), continues to monitor market trends and advocate for policies that sustain this positive trajectory for both consumers and industry stakeholders.
