Johannesburg, 07 January 2026 – South Africa’s new vehicle market has hit a remarkable milestone, with annual sales reaching a 17-year high of 596,818 units, buoyed by a 19.2% year-on-year increase in December, according to industry figures released by naamsa | the Automotive Business Council.
Brandon Cohen, Chairperson of the National Automobile Dealers’ Association (NADA), highlighted the significance of the retail-driven growth. “What was particularly encouraging for our members is that this strong performance was driven by demand at dealer level, with the retail sales network accounting for 90.8% of total sales in December,” Cohen said.
The year-end surge reflects a gradual but meaningful recovery in showroom activity, supported by improved affordability and stabilising consumer confidence. A stronger South African rand, lower fuel prices, favourable interest rates, and reduced inflation are contributing to vehicle price stability and positive buying sentiment, positioning the market well for the year ahead.
Passenger vehicles led the charge, with sales rising 20.3% in December compared to the same month in 2024. Annual passenger car sales of approximately 422,000 units represent the strongest retail recovery since the Covid-19 pandemic. Light commercial vehicles also performed strongly, recording 23.7% growth year-on-year in December.
In contrast, the truck and bus segments experienced slower sales, with medium commercial vehicle volumes declining 7.0% year-on-year and heavy trucks and buses falling 13.2% during the same period.
Dealers maintained their dominance in the domestic market, absorbing the bulk of sales. The rental industry accounted for 6.3% of new vehicle volumes, government purchases represented 1.9%, and industry corporate fleets contributed 1.0%.
Cohen also noted a shift in consumer preferences: “The trend towards smaller and more affordable models reflects increasingly price-sensitive and value-focused buyers, supported by relatively strong finance approval rates. Access to affordable credit remains critical, and early indicators suggest that the positive momentum in the new vehicle market is likely to carry into 2026.”
As South Africa’s automotive industry enters the new year, the combination of retail strength, economic stability, and consumer confidence points to a continued period of growth for the local market.
