South Africa’s new vehicle market staged a decisive recovery in 2025, with total sales climbing above pre-pandemic levels for the first time and reaching their highest point in more than a decade, according to industry body Naamsa.
Aggregate new vehicle sales for the year rose 15.7% to 596Â 818 units, driven by lower interest rates, record-low vehicle inflation and a surge of competitively priced imports, particularly from China and India. Passenger car sales were the standout performer, jumping 20.1% year on year to 422Â 292 units.
December 2025 capped off the strong performance, with industry sales rising 19.2% to 48 983 vehicles compared to the same month a year earlier. Passenger car volumes increased by more than 20%, while light commercial vehicles posted gains of nearly 24%, reflecting improved consumer confidence towards year-end.
Beyond the headline growth, Naamsa highlighted a structural shift under way in the market, with accelerating adoption of new-energy vehicles (NEVs), including electric and hybrid models. Year-to-date NEV sales by November 2025 had already surpassed the full-year total recorded in 2024, underscoring the accelerating pace at which South African consumers are beginning to embrace electrified mobility.
The shift has been supported by falling prices, a broader range of models and the influx of affordable imports, which have intensified competition and reshaped buying patterns. Vehicle inflation dropped to a record low of 1.5% in 2025, the lowest level since tracking began in 2008, helping make electric and hybrid options more accessible to private buyers and fleets.
Exports mixed
Export performance was more mixed. While total vehicle exports rose 4.4% to a record 408Â 224 units, passenger car exports declined 8% year on year, offset by strong growth in light commercial vehicles and trucks. Naamsa cautioned that geopolitical risks, trade tensions and uncertainty around preferential trade arrangements such as Agoa could weigh on future export growth, even as global demand for cleaner vehicles accelerates.
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Looking ahead, Naamsa expects the positive momentum to continue into 2026, forecasting sales growth of between 9% and 11%. Lower inflation, easing interest rates and continued progress on energy and logistics reforms are expected to support demand, while the transition to electric cars is set to become an increasingly central theme in South Africa’s automotive market. – © 2025 NewsCentral Media
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