Although the tariff clouds are gathering over the South African economy with serious implications for the local automotive export industry, local sales of new vehicles are soldiering on at a decent pace.
August’s new-vehicle sales performance reaffirms that domestic demand continues to do the heavy lifting for South Africa’s automotive sector even as export channels confront heightened policy headwinds.
New-vehicle sales in August maintained upward momentum domestically to its highest level since October 2019, while export volumes also gained traction despite the fact that manufacturers and suppliers continued to adjust to renewed US tariff uncertainty and increasing global competition.
Aggregate new-vehicle sales increased to 51 880 units in August 2025, up 8 188 units, or 18.7%, from the 43 692 units sold in August 2024. This strength has been driven by an ongoing influx of affordable models, improving consumer confidence, favourable credit conditions and a steady recovery in disposable incomes.
Overall, out of the total reported industry sales of 51 880 vehicles, an estimated 43 196 units, or 83.3%, represented dealer sales, an estimated 12.1% represented sales to the vehicle rental industry, 2.3% to industry corporate fleets and 2.3% to government sales.
The August 2025 new passenger car market at 36 914 units, its highest level since September 2015, registered an increase of 6 786 cars, or a gain of 22.5%, compared to the 30 128 new cars sold in August 2024.
Car rental sales accounted for a sound 15.0% of new passenger vehicle sales during the month. Domestic sales of new light commercial vehicles, bakkies and mini-buses, at 12 326 units during August 2025, recorded an increase of 1 616 units, or a gain of 15.1%, from the 10 710 light commercial vehicles sold during August 2024.
Sales for medium and heavy truck segments of the industry reflected a weak performance in August 2025, and at 717 units and 1,923 units, respectively, recorded a decrease of 29 units, or 3.9% from the 746 units sold in August 2024 in the case of medium commercial vehicles and, in the case of heavy trucks and buses, a decrease of 185 vehicles, or 8.8%, compared to the 2 108 units sold in the corresponding month last year.
Vehicle export volumes for the month of August 2025 increased by 2 190 units, or 6.2% from the 35 310 units exported in August 2024 to 37 500 units exported in August 2025.
For the year to date, vehicle exports were still 3% ahead of the same period in 2024 but are anticipated to come under increased pressure in the near term as the sector continues to adjust to higher tariff barriers to the US market as well as to adjust to the knock-on implications resulting in increasing global competition in other traditional export markets.
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