Shooting the LIGHTS OUT
THE PHOENIX THE PHOENIX
South Africans love their mobility. No surprise then, to see that vehicle sales in 2025 continues on an upward trajectory. The answer does not lie in economic performance, nor the affordability of new vehicles. It lies rather in the paucity of mobility options, and the need to replace aging vehicles.
Thus, it came as no surprise to read on 1 September 2025, from naamsa, that“ August’ s new vehicle sales performance reaffirms that domestic demand continues to do the heavy lifting for South Africa’ s automotive sector even as export channels confront heightened policy headwinds. New vehicle sales in August maintained upward momentum domestically to its highest level since October 2019, while export volumes also gained traction despite the fact that manufacturers and suppliers continued to adjust to renewed US tariff uncertainty and increasing global competition”.
The press release continues,“ aggregate new vehicle sales increased to 51 880 units in August 2025, up 8 188 units, or 18,7 %, from the 43 692 units sold in August 2024. This strength has been driven by an ongoing influx of affordable models, improving consumer confidence, favourable credit conditions, and a steady recovery in disposable incomes. Overall, out of the total reported industry sales of 51 880 vehicles, an estimated 43196 units, or 83,3 %, represented dealer sales, an estimated 12,1 % represented sales to the vehicle rental industry, 2,3 % to industry corporate fleets, and 2,3 % to government sales.
The August 2025 new passenger car market at 36,914 units, its highest level since September 2015, registered an increase of 6,786 cars, or a gain of 22,5 %, compared to the 30,128 new cars sold in August 2024. Car rental sales accounted for a sound 15,0 % of new passenger vehicle sales during the month. Domestic sales of new light commercial vehicles, bakkies and mini-buses at 12,326 units during August 2025 had recorded an increase of 1,616 units, or a gain of 15,1 %, from the 10,710 light commercial vehicles sold during August 2024. Sales for medium and heavy truck segments of the industry reflected a weak performance in
August 2025 and at 717 units and 1 923 units, respectively, recorded a decrease of 29 units, or 3,9 % from the 746 units sold in August 2024 in the case of medium commercial vehicles, and, in the case of heavy trucks and buses a decrease of 185 vehicles, or 8,8 %, compared to the 2 108 units sold in the corresponding month last year. Core domestic demand remained a key driver of new vehicle sales growth in August. The South African Reserve Bank’ s [ SARB ] decision at the end of July to reduce the repo rate by 25 basis points to 7.00 % further reinforced this momentum. The shift in market conditions lowered financing costs for households and dealer floorplans, broadening access to credit for vehicle purchases. Importantly, Treasury’ s clarification that any move toward a lower inflation target would only follow full consultation helped anchor confidence and limit policy uncertainty”.
I could argue against many of the reasons put forward for the higher sales, but suffice to say,
South Africans love their wheels!
SEPTEMBER 2025 3 WORDS IN ACTION