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South African new vehicle sales begin 2025 on a high note

Itumeleng Garebatshabe
Last updated: February 4, 2025 12:50
By Itumeleng Garebatshabe
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Vehicle sales in South Africa got off to a promising start in January, registering a 10.4% increase compared to the same period last year. “This has been a most welcome surprise for the industry,” said Brandon Cohen, Chairperson of the National Automobile Dealers Association (NADA), following the release of statistics for January 2025 by naamsa | The Automotive Business Council.

Flying start for vehicle sales in South Africa

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“The passenger car market was even more bullish, with an impressive gain of 18.3% compared to January 2024. This positive trend builds on the momentum from the last quarter of last year, with the rental industry once again playing a major role, accounting for 14.8% of the total market and 19.1% of the car market. A cherry on top was the 29.7% increase in exports of built-up vehicles, which are the lifeblood of several local manufacturers,” added Cohen.

Mixed Performance for Commercial Vehicle Sales

Sales of commercial vehicles continued to present challenges, with light commercial sales down 9.1% and heavy trucks and buses dropping by 2.8%. However, there was a bright spot as medium truck sales increased by 11.6%.

Caution Amidst Economic Headwinds

“Although we are obviously delighted at the strong performance of the overall market, particularly in the passenger car segment and the recent small drop in interest rates, several challenges remain for the motor trade,” Cohen warned. “Affordability continues to be a concern as the cost of living rises, compounded by a fourth successive fuel price hike, electricity increases, and the looming possibility of further load shedding. Additionally, there is the threat of tariffs and a freeze on funding from the United States.”

Looking Ahead with Optimism

“There are also positive developments on the horizon. We are hopeful about potential announcements during the President’s State of the Nation Address (SONA) on Wednesday and a possible fourth interest rate decrease in March (if the current inflationary forces remain in line).

“Taking all this into consideration, it has been a promising start to the year for the retail motor industry. Only time will tell whether we can build on this momentum as the year progresses,” concluded Cohen.

TAGGED:Brandon CohennaamsaNADASouth Africavehicle sales

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