September reaps demand rewards for new-vehicle sales
September’s new-vehicle sales were announced from SA Autoweek 2025 on Thursday marking the start of Transport Month and providing an insight into the continued growth of the country’s new-vehicle market.
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Sales during September grew by 24.3% to 54 700 units with 80.1% of those retailed through dealer networks.
The National Automobile Dealers' Association (NADA), which represents vehicle franchise motor dealerships in South Africa, which accounted for 85% of new franchise dealerships, reacted positively to the September sales figures.
NADA indicated more positive signs for dealer activity and the continued demand for new vehicles within a renewed optimism in the country. “The 1c per litre rise in petrol price is positive for October, and we know that the last CPI at 3.3% was very good and right near the 3% unofficial target of the South African Reserve Bank,” says Brandon Cohen, NADA chairperson. “US Dollar weakness is helping the rand, which will contribute to new vehicle pricing stability for some time to come.”
Ashley Samuel. Brandon Cohen and Thembinkosi Pantsi.
Improving overall economic sentiment, he noted the continued developments at Transnet, impacting stock delivery to dealers across the country, whilst combatting costs and therefore helping reduce overheads. “These improvements in national infrastructure not only provide efficiency to dealers but improve service to customers from a vehicle and parts availability perspective, never mind the reduction of road activity impacting road conditions and traffic,” Brandon says.
“Access to additional funds through the Two-Pot Retirement System has contributed to some households becoming credit-worthy again,” says NADA Vice Chairperson, Thembinkosi Pantsi. “While accessing savings should be carefully considered with the help of professional advisors, it is clear that overall budgets remain strained and are impacting affordability.”
“While demand clearly exists, affordability continues to constrain the new vehicle market, forcing many motorists into pre-owned showrooms in search of better value,” Brandon says. “While this remains good business for dealers, it ultimately impacts new vehicle sales and their slow recovery to pre-COVID levels. It does, however, maintain mobility for South Africans at an affordable price point.”
NADA Director, Ashley Samuel, noted an easing environment for consumers where cheaper inflation, a stronger rand, and more competitive car prices were making buying easier. “Although high interest rates and weak job growth are still making it harder for people to buy more expensive cars, the market is proving resilient and continues to boost the economy,” Ashley says.
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