Vehicle sales for April 2025 reached the 42 401 or 11.9% above the figure for the same period in 2024, according to the latest report from the Automotive Business Council (naamsa).

“Despite global economic headwinds and a relatively short trading month, the local auto sector, once again, delivered solid numbers, a pleasant surprise to even the most avid industry observers,” says Brandon Cohen, Chairperson of the National Automobile Dealers’ Association (NADA).

Gains in the passenger car segment of 4 350 units represent a 17% increase in the April 2025 sales figure of 30 101 units compared to the 25 751 units sold in the same month last year. The potential effect of the pending (now scrapped) VAT rate increase should also be considered.

The surge in passenger car sales was accompanied by a 3.2% year-on-year increase in the light commercial vehicles (LCV) segment where 9 961 units were sold in April 2025 compared to April 2024’s total of 9 654.

“The growth in the LCV segment is especially encouraging, pointing to an economy that is in better shape than one would expect,” Brandon says.

While finance approval rates remain under tremendous pressure, 87.9% of new-vehicle sales came from franchised dealers, while 7% were to the rental industry. Sales to corporate fleets accounted for 2.7% of the April 2025 volume, and government sales represented 2.5%.

Naamsa says the April 2025 new-vehicle market unfolded against a backdrop of escalating global economic uncertainty, yet South Africa’s automotive sector continued to show determined resilience. The industry’s structural depth, export capabilities and ability to pivot within a shifting global economy were fully on display.

Export sales decreased by 2 266 units, or 6.6%, to 31 822 units in April 2025 compared with the 34 088 vehicles exported in April 2024. Vehicle exports for the year to date were still 6.3% ahead of the same period last year.

Vehicle export sales, despite decreasing during the month, demonstrated underlying resilience. One major OEM halted production for more than half a month owing to a facility that had a negative impact on the industry’s export performance. There is a concern that vehicle exports may moderate as the full impact of the US Section 232 tariffs filters through.

With South Africa’s vehicle exports to the US previously enjoying tariff-free access under AGOA, the sudden imposition of these duties significantly alters market access conditions. South Africa’s automotive exports to the US will now face material cost disadvantages, raising concerns about pricing competitiveness and profitability for multinational OEMs operating domestically.

“The automotive sector finds itself once again at the coalface of global economic shifts,” says naamsa CEO Mikel Mabasa. “While the new US tariff measures are concerning, the resilience and competitiveness of the South African automotive exports remain steadfast. Our industry has navigated difficult global tides before, and we will compellingly do so again.”