South Africa’s new-vehicle market closed 2025 at its highest level in more than a decade, with total sales exceeding pre-pandemic volumes for the first time since 2019, according to Naamsa.
The industry sold 596,818 vehicles in 2025, up 15.7% from 2024, driven by interest-rate cuts, low vehicle inflation and a surge in imported models, particularly from China and India.
December sales accelerated into year-end
Total industry sales in December 2025 reached 48,983 vehicles, up from 41,101 a year earlier.
Passenger car volumes rose 20.3% year on year, while light commercial vehicles increased 23.7%. Medium commercial vehicles declined 7%, and heavy trucks and buses fell 13.2%.
Exports in December slipped to 26,852 units, down 10.4% from December 2024.
Dealer sales accounted for 90.8% of December volumes, with rentals taking 6.3%, government 1.9%, and corporate fleets 1%.
What drove the 2025 recovery
Naamsa attributes the market rebound to a combination of financial, political and structural factors.
Vehicle inflation fell to 1.5%, the lowest since records began in 2008. Interest rates were cut by 150 basis points from September 2024, while withdrawals from the two-pot retirement system boosted household liquidity.
The industry also saw a sharp rise in affordable imports, especially from China and India, increasing competition and widening buyer choice.
Pent-up demand from consumers who delayed purchases between 2021 and 2024 also contributed, as did the continued shift toward new-energy vehicles. By November 2025, new energy vehicle (Nev) sales had already exceeded total sales for the full 2024 year.
Exports hit record volumes
South Africa exported 408,224 vehicles in 2025, a 4.4% increase on 2024 and the first time exports crossed the 400,000-unit mark.
While car exports declined, shipments of light commercial vehicles rose 33.3%, and trucks and buses increased 68.4%, offsetting the drop.
Naamsa said the European market remains critical as manufacturers navigate changes to CO₂ targets, while geopolitical risks and trade uncertainty, particularly with the US, remain a concern.
Outlook for 2026
The industry expects growth to continue in 2026, supported by lower inflation, interest-rate relief and moderate economic expansion.
Naamsa forecasts new-vehicle sales to grow between 9% and 11% this year. The South African Reserve Bank expects GDP growth of 1.4% to 1.6%, driven in part by reforms in electricity and transport.
Chinese manufacturers are also expected to continue pushing more vehicles into export markets as domestic demand in China slows.
New Naamsa board appointed
Naamsa has appointed a new board to oversee the industry through the transition to electric vehicles and increasing export risk.
Peter van Binsbergen, CEO of BMW Group South Africa, becomes president.
Andrew Kirby (Toyota SA Motors) was appointed vice-president for manufacturing, Thato Magasa (Mitsubishi Motors SA) for retailing, and Jan Aichinger (Man Automotive SA) for heavy commercial vehicles.
Billy Tom (Isuzu Motors SA) remains on the board as immediate past president.
