South Africa’s car sales hit two-year high

South Africa’s automotive industry benefited from stable inflation at 3.2% y-o-y in February and earlier monetary easing, which supported consumer confidence and vehicle financing.

1 Apr 2025

Source: Pexels

March new vehicle sales were the best since March 2023, nudging the 50,000-unit volume and placing the market firmly at pre-Covid-19 levels, according to Wesbank.

Domestic new vehicle sales surged, with aggregate sales reaching 49,493 units - an increase of 5,504 units, or 12.5%, compared to March 2024. The new passenger car market led the charge, soaring by 25.3% to 33,447 units, driven by robust consumer demand and a stable lending environment.

On the global front, export sales recorded an impressive increase of 9,354 units, or 31.1%, reaching 39,477 vehicles in March 2025, which is 15.7% higher than March 2023 exports. This marks the first export growth in ten months, signalling renewed momentum in South Africa’s global trade position.

Aggregate domestic new vehicle sales in March 2025, at 49,493 units, reflected an increase of 5,504 units, or 12.5%, compared to the 43,989 vehicles sold in March 2024. Export sales recorded an increase of 9,354 units, or 31.1%, reaching 39,477 in March 2025, compared to 30,123 vehicles exported in March 2024.

Overall, out of the total reported industry sales of 49,493 vehicles, an estimated 42,953 units, or 86.8%, represented dealer sales, while an estimated 7.3% accounted for sales to the vehicle rental industry, 3.5% to government, and 2.5% to corporate fleets.

The March 2025 new passenger car market, at 33,447 units, registered an increase of 6,756 cars, or 25.3%, compared to the 26,691 new cars sold in March 2024. Car rental sales accounted for 7.2% of new passenger vehicle sales during the month. Domestic sales of new light commercial vehicles, bakkies, and minibuses, at 13,328 units in March 2025, recorded a decline of 1,227 units, or 8.4%, from the 14,555 light commercial vehicles sold in March 2024.

Sales in the medium and heavy truck segments of the industry reflected a weak performance in March 2025, with 696 medium commercial vehicles and 2,022 heavy trucks and buses sold. This represented a decline of 13 units, or 1.8%, compared to the 709 medium commercial vehicles sold in March 2024, and a decrease of 12 vehicles, or 0.5%, from the 2,034 heavy trucks and buses sold in the corresponding month last year.

The March 2025 export sales figure, at 24,801 units, reflected an increase of 1,642 vehicles, or 7.1%, compared to the 23,159 vehicles exported in March 2024.