New vehicle market delivers strongest April in over a decade

South Africa’s new vehicle market delivered its strongest April performance in 13 years, with domestic sales rising 13,0% year-on-year to 47 979 units. The result confirms that underlying demand remains resilient, even as rising fuel costs, inflation risk and a more cautious interest rate outlook begin to test affordability. According to Naamsa-The Automotive Business Council, April sales were up from 42 467 units in April 2025.

Dealer activity remained the backbone of the market, accounting for 91,1% of total sales, followed by rental sales at 5,1%, corporate fleets at 2,2% and government at 1,6%. “This is an encouraging result, particularly as the market has not reached this level in April since 2013,” says Thanda Sithole, senior economist at WesBank. “The growth was also broad-based, with passenger cars, light commercial vehicles and the heavier segments all posting gains.

This suggests the recovery has some depth, although affordability remains a key constraint for many consumers.” Passenger car sales increased 14,3% to 34 414 units, while light commercial vehicles rose 9,7% to 10 966 units. Medium commercial vehicles grew 10,5% to 687 units and heavy trucks and buses increased 9,9% to 1,912 units. Exports were softer, declining 4,0% to 30 939 units.

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The fall was partly driven by a 42,9% decline in light commercial vehicle exports linked to model-change activity at a major exporter, rather than a clear structural shift in demand. The domestic result comes against a changing economic backdrop. Inflation rose to 3,1% in March from 3,0% in February, but that reading was taken before the full impact of sharp fuel price increases.

The next CPI release, due on 20 May, will more fully reflect those fuel effects. The South African Reserve Bank (SARB) kept the repo rate unchanged at 6,75% in March, but warned that higher energy prices could push inflation to around 4% in the second quarter, with fuel inflation above 18%. This has postponed expectations of further rate cuts and leaves vehicle buyers facing a less supportive finance environment.

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