South Africa’s total new vehicle sales slowed in April, to 47 979 units, from 58 060 units in March, as high fuel costs and a weaker rand placed pressure on household budgets.

According to NAAMSA, a motor industry lobby group, passenger car sales slowed to 34 414 units from 39 370 units, light commercial vehicle sales fell to 10 966 units from 15 557 units, medium commercial vehicle sales slowed to 687 units from 823 units, while heavy trucks and buses declined to 1 912 units from 2 017 units.

Exports were also weaker. Vehicle export sales fell to 30 939 units from 37 388 units. NAAMSA said the decline was driven largely by light commercial vehicles, where volumes contracted by 42.9% because of the phased roll-out of new model production by a key exporter.

Although vehicle sales slowed in April, the latest reading was still 13% above the number of units sold in April 2025. Until the Iran War began in February, the vehicle industry had been supported by several tailwinds. These included the formation of the Government of National Unity, which lifted confidence in South Africa’s political outlook, lower fuel prices, a stronger rand, and an easing inflation backdrop. That allowed the South African Reserve Bank (SARB) to cut interest rates by a cumulative 150 basis points since September 2024. The two-pot retirement system also helped ease household budgets and supported vehicle demand.

That picture has now started to change. As South Africa moves through May, the inflation outlook has worsened compared with previous months. Consumer inflation is expected to move closer to 4%, while households are facing higher petrol prices, with the SARB likely to maintain a cautious monetary stance and keep the repo rate steady at 6.75%.