The Automotive Business Council (naamsa) says the broader economy surprised one and all on the upside in the second quarter, with GDP expanding by 0.8% q/q and household spending showing resilience, in its reaction to the release of the monthly new vehicle sales for September this year.
In a statement, naamsa says the medium-term growth outlook remains muted. Fitch Ratings’ decision to affirm the sovereign credit rating at BB- with a stable outlook underscores expectations of GDP growth averaging just 1.2% through 2027, as structural constraints continue to weigh on investment and job creation. For the vehicle market, this points to a demand base that is steady but limited by low potential growth.
Encouragingly for households, consumer inflation slowed to 3.3% y/y in August, below expectations. Lower food, fuel and transport costs have eased pressure on disposable incomes, while subdued vehicle price inflation, supported by a stronger rand and heightened competition, has helped sustain affordability in certain segments. This disinflationary trend offered some relief for car buyers, particularly in the small-car and entry-level categories, where cost sensitivity is highest.
Despite inflation undershooting expectations, the South African Reserve Bank (SARB) held the repo rate at 7% at its September meeting. By prioritising inflation expectations at the lower end of the 3 to 6% range, the SARB has maintained restrictive borrowing costs. While new-vehicle purchases have benefited from the 125 basis points of cuts implemented so far, further easing would be particularly beneficial for households considering higher-value or discretionary vehicle purchases.
Consumer confidence weakened in the third quarter, with the sharpest decline among middle income households, whose sentiment fell owing to weak job creation and rising food costs.
Encouragingly, the index for durable goods purchases edged slightly higher, suggesting that some households remain willing to consider big-ticket items where @nancing is accessible. On the external front, the trade balance remained in surplus at R20.3 billion in July, supported by strong commodity and agricultural exports.
This has helped stabilise the rand and contain imported inflation, indirectly benefiting the auto sector through lower costs of imported components and competitive vehicle pricing. However, rising imports of petroleum products and shifting trade conditions, including US tariff barriers, continue to pose risks for the broader economic environment in which the automotive sector operates.
Audi South Africa has introduced the new Q5 range, comprising the third-generation Q5 SUV, second-generation Q5 Sportback, and the performance-focused SQ5 SUV and SQ5 Sportback. The range is built on Audi's Premium Platform Combustion and brings a new generation of petrol and diesel engines to the nameplate.
Geely Auto South Africa (GASA) has introduced Riddara, Geely Auto Group's new energy bakkie brand, to the South African market.
Ford’s next big electric vehicle push is less about a dramatic new badge and more about what happens behind factory doors.
Advertisement
Advertisement
Cars are the ultimate symbol of freedom, independence and individualism. They offer the freedom to ‘go anywhere,’ whenever it suits and with whom one chooses.
Sarah Redshaw
The Toyota Starlet has improved from zero to a four-star rating for adult occupant protection in Global NCAP's latest #SaferCarsForAfrica crash test results. This follows a safety upgrade to make six airbags a standard fit.
South Africa's new vehicle market sustained strong momentum in August 2026, with aggregate sales increasing by 11,4% year-on-year to 57 898 units, says the Automotive Business Councill | naamsa.
South Africa’s new-vehicle market maintained its momentum in August, with aggregate sales of 57 898 units representing an increase of 11.4% compared with the same month last year.
