Record Car Sales
What is driving powerful new car buying demand?
The South African new passenger car market continues to defy expectations with strong demand. July sales were up 11,9 % year-on-year, totalling 57,708 bakkies and cars, setting a monthly record not seen since September 2014.
Despite nervous car markets in places like Europe, the South African market has benefited from several factors that have boosted buyer confidence. Fuel prices have moderated slightly, and the Reserve Bank has kept interest rates benign, keeping vehicle financing costs reasonable.
Most importantly, is the influence of all the new Chinese vehicle models, offering incredibly generous specifications and competitive pricing. The result is that many South Africans who were buying low-mileage used vehicles are now in a position to buy new Chinese vehicles, which they are, in record numbers.
Is the demand sustainable, though? Thanda Sithole, Senior Economist at FNB and WesBank, explains how South African car buyers are buying. " We ' re seeing a growing preference for longer loan terms and balloon payment structures to manage affordability," says Sithole. " As a result, the total cost of ownership is becoming as important as the purchase price or deposit when consumers assess what they can realistically afford."
BEVs and Hybrids
What about EVs? New Energy Vehicle adoption also continues to build momentum. The latest available data, for June 2026, shows 3, 045 NEVs sold, a 104,2 % increase on the 1, 491 units recorded in June 2025, taking NEV penetration to 6 % of total domestic new light vehicle sales. Traditional hybrids continue to lead the segment, accounting for 48,9 % of NEV sales, followed by plug-in hybrids at 32,5 % and battery electric vehicles at 13,8 %.
Year to date, South Africa has recorded 13 193 NEV sales. The majority of those NEV sales are not true BEVs, though, but mostly compliance HEVs and PHEVs.
Perhaps the truest indication of actual BEV demand is BYD, the Chinese brand which has only recently started sharing its true South African sales data. The majority of BYD ' s models in South Africa are BEVs, and its July sales were surprisingly healthy at 860 units.
A significant number of the BYD entry-level BEV sales( the affordable Dolphin Surf), are not going to middle-income buyers. Wealthy new-car buyers are driving much of the entry-level BYD demand. Why? Because they are using their
WORDS IN ACTION 6 SEPTEMBER 2026