South Africa’s domestic new vehicle sales are on track to exceed pre-pandemic levels for the first time in five years, driven by strong consumer demand for affordable cars, the president of the auto industry group NAAMSA said.
Speaking at NAAMSA’s annual auto conference on Wednesday, Billy Tom highlighted that the industry’s performance in the first half of 2025 demonstrated resilience, with consumer appetite driving growth despite global and local economic challenges.
Domestic new vehicle sales in the first six months of 2025 increased by 14% compared to the same period in 2024, with imports rising 30.2%. Tom noted that the market has benefited from an influx of very affordable models, mostly from China.
The market for new vehicles is expected to surpass 2019 levels, when pre-pandemic sales stood at 536,612 units, compared to 515,850 units sold in 2024.
Thato Magasa, NAAMSA’s vice president for retailing car manufacturers, said there has been a notable shift in consumer preferences, with buyers increasingly prioritising value over brand prestige. New entrants to the domestic market, particularly Chinese and Indian car brands, have provided more affordable options for South African consumers.
Since 2024, reductions in interest rates by 125 basis points, easing inflation, and improved economic growth have further supported the new vehicle market, Magasa added.
