New vehicle market strongest June since 2007

South Africa's new vehicle market maintained its positive momentum in June, despite a challenging domestic economic environment marked by high inflation, elevated interest rates and weaker consumer confidence.

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According to naamsa | The Automotive Business Council, demand continued to be supported by essential mobility needs, ongoing business activity and fleet replacement, highlighting the resilience of the country's automotive sector.

Best June in two decades:

Aggregate domestic new vehicle sales reached 54 482 units in June 2026, representing the strongest June performance since 2007. This was an increase of 7 213 units, or 15.3%, compared with the 47 269 vehicles sold in June 2025.

Export volumes, however, moved in the opposite direction, declining by 6.9% to 33 879 units, down from 36 377 units in June last year.

Dealer sales remained the main driver of the market, accounting for 47 368 units, or 86.9% of total industry sales. The vehicle rental industry represented 7.8% of sales, while government purchases contributed 2.8% and corporate fleets 2.5%.

Passenger cars lead growth:

The passenger car segment recorded the strongest gains during the month, with sales increasing by 18.1% to 38 393 units, compared with 32 511 units in June 2025. Vehicle rental companies accounted for 9.7% of new passenger car sales.

The light commercial vehicle market, including bakkies and minibuses, also remained positive. Sales rose by 8.4% to 13 171 units, up from 12 155 units in the corresponding month last year.

Commercial vehicle sales also improved. Medium commercial vehicles increased marginally to 647 units, up 0.6% from 643 units, while heavy trucks and buses recorded a stronger increase of 15.9%, reaching 2 271 units compared with 1 960 units a year earlier.

Market resilience:

Naamsa says the domestic market continued to outperform expectations during June, supported by essential mobility needs, replacement demand, fleet renewal and stronger government procurement.

Although rising fuel prices, inflationary pressures and tighter financial conditions weighed on the wider economy during the second quarter of 2026, government purchasing helped support demand. Passenger vehicle acquisitions by government increased by 22.1%, while light commercial vehicle purchases rose by 41.8% compared with the same period last year.

Improving outlook for consumers:

Looking ahead, naamsa believes there are encouraging signs that conditions could gradually improve.

The latest Absa Purchasing Managers' Index (PMI) suggests that cost pressures began easing towards the end of June, helped by lower global oil prices following reduced geopolitical tensions and improving supply conditions. While manufacturing demand remains subdued, stronger business sentiment points to the possibility of a more stable economic environment.

If these trends continue, consumers could benefit from moderating inflation, more stable fuel prices and improved affordability, creating a more favourable environment for new vehicle purchases.

Logistics improvements good for commercial vehicles:

Naamsa also highlighted improvements in South Africa's logistics network as a positive development for the commercial vehicle market.

The organisation noted that the 2025 World Bank Container Port Performance Index, produced with S&P Global Market Intelligence, ranked Durban as the world's most improved container port. Both Gqeberha and Ngqura also featured among the world's leading ports for year on year improvements.

Combined with higher berth utilisation, improved equipment availability, operational reforms, greater private sector participation and increased vessel traffic and cargo throughput reported by Transnet during the 2025/26 financial year, these developments are expected to support freight activity, fleet replacement and future investment in commercial vehicles.

More results here:

AVAF Infographic June 2026

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