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SA's new vehicle sales surge, but exports slide amid global pressure

South Africa’s new vehicle market posted its strongest performance since October 2019, with 51,383 units sold in July 2025, up 15.6% from July 2024. The passenger car segment led the surge with 36,248 units, the best monthly result since January 2017.
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Source: Pexels

Dealer sales accounted for 83.1% of the total, followed by rental industry sales at 11.1%, government sales at 3.1%, and corporate fleets at 2.7%. Light commercial vehicle sales rose 6.9%, while medium commercial vehicle sales climbed 13.9%. Heavy truck and bus sales dipped slightly by 1.3%.

The performance was supported by lower interest rates, improved electricity stability, and rising consumer confidence. The Reserve Bank’s 25 basis point repo rate cut in July, its third this year, also contributed to a more favourable credit environment.

Vehicle exports fall amid tariff impact

While domestic sales gained ground, vehicle exports declined by 1.9% year-on-year in July to 35,379 units. Exports to the United States, historically a key market for locally produced premium models, fell by 82.2% in the first half of 2025 following the imposition of 25% tariffs in April, with an additional 30% general export tariff taking effect from 7 August.

Despite this, year-to-date exports remain 2.5% above 2024 levels, buoyed by increased demand from other international markets and adjustments by original equipment manufacturers (OEMs) to redirect supply.

Trade outlook and industry response

The US tariff escalation has raised concerns about long-term competitiveness, especially as other countries have secured preferential terms. Without relief, the local industry risks further strain on production volumes and jobs.

Naamsa said the industry is now focused on expanding regional trade, accelerating the NEV transition strategy, and preparing for the upcoming review of the South African Automotive Masterplan 2035 (SAAM35) and Automotive Production and Development Programme Phase 2 (APDP2).

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