As South Africa navigates a shifting and often unpredictable economic landscape, the National Automobile Dealers’ Association (NADA) says there are growing signs of improvement that could support increased confidence across the new-vehicle market, even as several structural challenges remain.
Brandon Cohen, NADA Chairperson, noted that recent macroeconomic signals have been encouraging. “We’re seeing interest rates beginning to ease, rand volatility settling, and far greater operational stability from Eskom and Transnet,” he says. “Alongside better-than-expected GDP performance, these factors are creating a more supportive environment for both consumers and businesses.”
Dealers are reporting slightly improved, though still cautious, consumer confidence, supported by more favourable financing conditions. Stabilising economic indicators are also encouraging renewed interest from fleet buyers, while opportunities for well-structured dealer incentives are helping to ease pressure on household budgets.
However, Brandon stresses that these improvements need to be considered alongside ongoing challenges. “Municipal deterioration concerns around crime and the effectiveness of law enforcement as well as political uncertainty ahead of the 2026 municipal elections all continue to weigh on public sentiment,” he says.
Factors that may influence 2026:
While it’s always difficult to predict how the year ahead will unfold, there are a few developments, both locally and globally, worth watching.
Local government elections:
South Africa’s municipal elections in 2026 may shape public mood and service-delivery priorities. With new parties entering the space and shifting political dynamics, the months leading up to the elections could influence overall sentiment.
US mid-term elections:
Political outcomes in the United States often ripple through global markets. While the direct impact on South Africa is difficult to quantify, shifts in US policy and economic direction may influence global trade and investor confidence.
The AI bubble:
AI continues to expand rapidly across industries worldwide. Whether this growth strengthens further or starts to level out is something many sectors are watching closely. Any shift in the pace of AI adoption could influence job structures and economic opportunities, particularly in developing markets.
GDP growth potential:
Recent improvements in electricity stability, port performance and ratings-agency sentiment are encouraging. The question for 2026 is whether these gains can hold long enough to support broader economic growth and job creation.
New vehicle market entrants:
After a busy year of model introductions, particularly from Indian and Chinese brands, the pace of new entries may begin to ease as the market adjusts to the increased variety.
FIFA men’s world cup:
A lighter point, but still meaningful for national morale: South Africans will be rallying behind the team, and a positive showing could add a welcome boost to public optimism.
A cautiously optimistic outlook:
“These shifts, both at home and internationally, highlight how many moving parts influence our environment,” Brandon says.
“While nothing is guaranteed, there is room for cautious optimism if the current momentum continues. Our dealership networks will keep prioritising value, transparency and service as we navigate the road ahead.”
Within the vehicle retail sector, there are meaningful career opportunities for young people who are interested in sales, customer engagement, administration and dealership operations.
Housed in the upmarket, safe and centrally located Ballito Business Park in Moffat Drive, the location is in the heart of the Ballito retail trading business precinct amongst many already established OEM brands.
SVI Engineering, specialist manufacturer of armoured products in South Africa, has released a series of Transformer-inspired videos via its social media channels, highlighting how the company leverages its extensive expertise in the military and security fields to deliver civilian protection.
Advertisement
Advertisement
You can't buy happiness but you can buy cars and that's kind of the same thing.
Unknown
SVI Engineering, specialist manufacturer of armoured products in South Africa, has released a series of Transformer-inspired videos via its social media channels, highlighting how the company leverages its extensive expertise in the military and security fields to deliver civilian protection.
The new car buying trend has continued unabated into the new year, with January figures reflecting a 7.5% increase in total vehicle sales and passenger car volumes rising by 7.1%.
The positive momentum of new vehicle sales in 2025 seems set to continue in 2026, with January building on the previous year’s success, says the Automotive Business Council (naamsa).
