South Africa’s new vehicle market delivered a landmark performance in 2025, finally recovering above 2019 pre pandemic levels and reaching highs not seen in a decade.
This upward swing, closely tied to broader economic improvements, was significantly buoyed by a cumulative 150 basis points in interest rate cuts since September 2024, record low vehicle inflation, an influx of affordable model imports, and the liquidity injection from the two pot retirement system withdrawals, says the Automotive Business Council | naamsa.
The new vehicle market recorded a strong conclusion to the year in December 2025, with aggregate industry new vehicle sales reaching 48 983 units, an increase of 7 882 vehicles compared to the 41 101 units recorded in December 2024. This year end momentum coincided with festive cheer as consumer confidence showed a notable improvement in the fourth quarter and marked the highest reading of the year.
The December 2025 new passenger car market reflected a sound performance with a year-on-year volume increase of 20,3%, while light commercial vehicles recorded a gain of 23,7%. Truck and bus sales, however, ended the year on a weaker note, with medium commercial vehicles decreasing year on year by 7%, while heavy trucks and buses declined year on year by 13,2%.
Vehicle export sales in December 2025 reached 26 852 units, reflecting a decrease of 10,4% compared to the 29 955 vehicles exported during December 2024.
Overall, out of the total reported industry sales of 48 983 vehicles, an estimated 44 486 units or 90,8% represented dealer sales, 6,3% went to the rental industry, 1,9% to government, and 1% to industry corporate fleets.
More results: AVAF Infographic December 2025
As fuel prices continue to climb across South Africa, many motorists are beginning to question whether owning a car still makes financial sense. With in-land petrol prices now at R26.63 a litre and diesel costs rising sharply in May, transport expenses are placing growing pressure on household budgets.
Pinewood.AI has added two new embedded modules to its Business Intelligence Solution, giving dealers and OEMs greater insight into financial performance and the customer journey, it says.
Two new off-grid, solar-powered charging stations for electric vehicles (EV) have been switched on as part of the Zero Carbon Charge (CHARGE) network.
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You can't buy happiness but you can buy cars and that's kind of the same thing.
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Pinewood.AI has added two new embedded modules to its Business Intelligence Solution, giving dealers and OEMs greater insight into financial performance and the customer journey, it says.
Margins are shrinking, customers are under financial strain, and competition is intensifying across South Africa’s motor retail sector. Against this backdrop, dealerships are being forced to rethink how they remain profitable while still building customer trust and long term sustainability.
Ford will launch seven new models in Europe by 2029, it announced recently, as it seeks to grow its flagging passenger car sales, fend off fierce competition from Chinese rivals and maintain an edge in the continent's commercial vehicle market.
