By Malusi Msomi

South Africa’s new vehicle market continued its upward momentum in September 2025, reaching its highest monthly sales level in ten years. According to the latest figures released by naamsa | The Automotive Business Council, total new vehicle sales rose to 54,700 units. That’s an increase of 10,700 units or 24.3% compared to September 2024.

Of the total, an estimated 43,817 units (80.1%) were sold through dealers, 15.2% went to the rental industry, 2.7% to corporate fleets, and 2.0% to government.

Passenger car sales led the way, with 38,603 units sold in September, the strongest figure since October 2014 and a 28% increase year-on-year. Rental companies accounted for just over 20% of those sales. Light commercial vehicles, bakkies, and minibuses followed with 13,078 units, up 19.7% from the same month last year. The medium truck segment dipped slightly by 1.9%, while heavy trucks and buses saw a 5.9% gain.

Economically, the local market is benefiting from easing inflation and a stronger rand. Inflation slowed to 3.3% in August, easing the pressure on household spending and helping keep vehicle prices relatively stable. Lower food, fuel, and transport costs have supported purchasing power, especially in entry-level segments.

Despite these positive indicators, the South African Reserve Bank kept the repo rate steady at 7.00% in September. While this maintains restrictive borrowing conditions, earlier rate cuts have already supported vehicle financing and affordability.

Consumer confidence weakened in the third quarter, particularly among middle-income households. However, the slight rise in durable goods sentiment suggests ongoing interest in large purchases, such as new vehicles, where finance is available.

On the export front, the industry also recorded solid gains. Vehicle exports increased by 32.9%, from 29,180 units in September 2024 to 38,772 units in September 2025. Year-to-date exports are now 6% ahead of last year’s figures, reflecting the sector’s resilience despite global trade pressures and supply chain challenges.

Overall, September marked a strong month for the South African automotive industry, supported by improving economic stability, easing inflation, and renewed consumer activity in both domestic and export markets.