"What was particularly encouraging for our members is that this strong performance was driven by demand at dealer level, with the retail sales network accounting for 90.8% of total sales in December," says Brandon Cohen, Chairperson of the National Automobile Dealers' Association (NADA).

"The ongoing sales improvement, which began in the second half of 2025, continued strongly to lift annual new vehicle sales to a 17-year high of 596,818 units, with the December market recording a 19.2% year-on-year increase," commented Brandon Cohen, Chairperson of the National Automobile Dealers' Association (NADA), following the release of industry sales data by naamsa | the Automotive Business Council.

"The solid year-on-year growth reflects a gradual but meaningful recovery in showroom activity as affordability improved and consumer confidence stabilised. The continued strength of the South African rand, together with lower fuel prices, bodes well for vehicle price stability, while favourable interest rates, lower inflation and a positive buying sentiment support near-term demand," he adds.

Passenger vehicle sales were the largest growth driver, increasing by 20.3% in December compared to the same month a year earlier. Annual passenger car sales of approximately 422 000 units represent the strongest retail recovery since the Covid-19 pandemic. Light commercial vehicles also delivered a robust performance, recording 23.7% year-on-year growth in December.

Sales in the truck and bus segments came under pressure towards year-end, with medium commercial vehicle volumes down 7.0% year-on-year in December, and heavy truck and bus sales also declining 13.2% year-on-year.

Dealers continued to dominate domestic new vehicle sales, with just 6.3% of volumes absorbed by the rental industry, 1.9% by government and 1.0% by industry corporate fleets.

"The trend towards smaller and more affordable models reflects increasingly price-sensitive and value-focused consumers, supported by relatively strong finance approval rates," says Brandon. "Access to affordable credit remains critical, and early indicators suggest that the positive momentum in the new vehicle market is likely to carry into 2026."