New vehicle sales in South Africa reached their highest monthly level in ten years in September, signalling rare momentum in an economy still struggling to lift its economic growth rate much above 1%.

According to data from Naamsa (the automotive business council), total sales rose 24% year-on-year to 54 700 units from 44 000 in September 2024, the strongest figure since September 2015. Passenger car sales climbed 28% to 38 603 units from 30 167, the highest since October 2014, while light commercial vehicles increased nearly 20% to 13 078 units from 10 924.

Exports also showed strong gains, rising 32.9% year-on-year in September to 38 772 units from 29 180, pushing year-to-date volumes 6% above 2024 levels. The sector’s export strength remains a lifeline for local manufacturers, supported by subdued vehicle price inflation and steady demand from global partners.

The upbeat data follows a cumulative 125 basis points rate cut by the South African Reserve Bank (SARB) since it began easing monetary policy in September 2024, making credit more affordable for consumers and businesses. Meanwhile, consumer inflation eased to 3.3% in August from 3.5% in July, further reducing pressure on households.

Bheki Mahlobo, Economics and Policy Editor at The Common Sense, said the rise in new car sales has been supported by the SARB’s recent interest rate cuts. "Lower borrowing costs are good news for car dealers and will also provide some support to retail sales," Mahlobo said. "However, consumers and businesses should be aware that the pace of future rate cuts may be limited, as the SARB looks to maintain a broad interest rate differential with the United States."

According to Naamsa the automotive industry contributes 5.2% to South Africa’s GDP and 22.6% of manufacturing output, with exports worth R268.8 billion in vehicles and components last year.