South African new-car sales surge to 19-year high in March

New vehicle sales in South Africa grew 17.3% year-on-year in March, continuing the sector’s impressive revival.

With 58,060 units sold, it was the best March figure since 2007.

Passenger cars moved 39,370 units for an 18.2% increase over March 2025, while light commercial vehicles (including bakkies and minibuses) grew 15.7% to 15,557 units.

Medium commercial vehicles, at 823 units, increased 14%, while heavy trucks and buses were 14.5% up to 2,310 units.

Investment decisions in these segments remained closely linked to infrastructure spending, freight volumes, electricity costs and overall business confidence, said motor industry body Naamsa.

However, export sales decreased to 37,388 units, a loss of 5.3% compared to March 2025.

Naamsa said inflation trends initially provided meaningful support to local sales, with headline and core inflation both moderating to 3.0% year-on-year in February, alongside declining fuel and food prices and subdued producer cost pressures.

However, this outlook deteriorated sharply due to rising geopolitical tensions in the Middle East, which pushed global oil prices significantly higher.

The resulting fuel price increases in April, at R3.06 per litre for petrol and up to R7.51/litre for diesel, are expected to raise transport and logistics costs across the economy, it said.

The temporary R3/litre reduction in the general fuel levy offers short-term relief to disposable incomes and the total cost of vehicle ownership — it does not fully offset the magnitude of the underlying energy price shock, said Naamsa.

It welcomed the South African Reserve Bank’s decision to maintain the repo rate and anticipates that the wave of recovery resulting from the 150 basis points cuts since September 2024 will create the resilience to sustain demand in the upcoming months.

Naamsa COO Shinny Gobiyeza said the president’s address at this week’s South Africa Investment Conference signalled a clear shift towards investment-led growth, infrastructure expansion, energy transition and industrialisation.

“The emphasis on decarbonisation and green industrialisation introduces a pivotal shift for the sector. The explicit reference to electric vehicle manufacturing and battery storage confirms that the government sees the automotive industry as part of the green industrialisation strategy,” she said.

Toyota retained its market leadership in local new vehicle sales last month.

Top sellers were:

Toyota — 13,323 units

Volkswagen Group — 5,574

Suzuki — 5,047

Isuzu — 3,513

Hyundai — 3,258

Ford — 2,828

GWM — 2,777

Chery — 2,390

Mahindra — 2,280

Jetour — 1,768

Kia — 1,646

BMW — 1,588

Nissan — 1,487

Omoda & Jaecoo — 1,433

Renault — 1,407.