South Africa's new vehicle market maintained its upward momentum in July, with sales climbing 11.9% year-on-year to 57,708 units – the strongest July performance in more than a decade and the best monthly passenger car sales since September 2014.
According to Naamsa, passenger vehicle sales increased 12.5% to 40,912 units, while light commercial vehicle sales rose 10.6% to 13,710 units. Medium commercial vehicle sales jumped 19.4% – their strongest monthly performance since March 2023 – while heavy trucks and buses grew 7%.
Dealer sales continued to dominate the market, accounting for 84.8% of all new vehicle sales during the month, with the vehicle rental industry contributing 11.2%.
Exports, however, remained under pressure, declining 11.6% year-on-year to 32,801 units.
The industry body attributed the market's resilience to lower fuel prices in July, which helped offset the impact of the full reinstatement of the General Fuel Levy, easing pressure on household and business budgets.
Consumer confidence improves
The National Automobile Dealers' Association (Nada) said the strong dealer performance points to improving consumer confidence, supported by stable interest rates, lower petrol prices and increased focus on value.
"The July results clearly indicate that consumer confidence is improving," said Nada chairperson Brandon Cohen.
"With 84.8% of all new vehicles sold during July being retailed through dealerships, these figures are an outstanding endorsement of the resilience of South African consumers and the strength of the retail motor industry."
Cohen said consumers remain highly value-conscious, weighing purchase price, fuel efficiency, finance costs and long-term ownership costs before making buying decisions.
Dealerships also reported stronger activity in the pre-owned vehicle market, alongside growing interest in both new and used Chinese brands as buyers seek more affordable options.
Electrified vehicle sales surge
naamsa said South Africa's transition to new energy vehicles (NEVs) continued to gather pace, with sales more than doubling year-on-year.
A total of 3,045 electrified vehicles were sold during June 2026, up 104.2% from 1,491 units a year earlier, representing around 6% of all new light vehicle sales.
Traditional hybrid electric vehicles (HEVs) remained the largest segment with 1,488 units, followed by plug-in hybrid electric vehicles (PHEVs) at 990 units and battery electric vehicles (BEVs) at 419 units.
Year-to-date, South Africa has recorded 13,193 NEV sales, comprising 6,667 HEVs, 4,623 PHEVs and 1,903 BEVs.
Naamsa CEO Shinny Gobiyeza said the results reflected an industry adapting to changing consumer preferences while steadily advancing towards electrified mobility.
"The continued growth in domestic vehicle sales, coupled with record levels of new energy vehicle adoption, demonstrates the resilience of South Africa's automotive industry," she said.
Commercial vehicle outlook brightens
Nada said commercial vehicle sales also pointed to improving business confidence, with medium commercial vehicles recording their strongest monthly performance since March 2023.
According to Nada commercial vehicle executive Martin van den Berg, increased demand for distribution fleets, construction vehicles and freight capacity suggests businesses are planning ahead.
"While it is too early to call it a broad-based recovery, these are positive signals from sectors that typically invest ahead of growth," he said.
The association said continued investment in logistics, freight and distribution fleets indicates businesses remain committed to improving productivity despite ongoing economic challenges.
