South Africa’s new vehicle market delivered a landmark performance in 2025, finally recovering above pre-pandemic levels and reaching highs not seen in a decade.

This is according to NAAMSA, a motor industry body.

This upward trajectory was supported by a cumulative 150 basis points in interest rate cuts by the South African Reserve Bank since September 2024, record low vehicle inflation, and liquidity released through the two-pot retirement withdrawal system.

Vehicle sales were strong in December 2025. Total new vehicle sales that month reached 48 983 units, up from 41 101 units recorded in December 2024, underscoring a clear improvement in demand conditions as consumer confidence lifted in the final quarter of the year.

On an annual basis, 2025 marked a decisive turnaround for the market. Passenger car sales rose by 20.3%, a sharp acceleration from 1.2% growth in 2024. Light commercial vehicle sales increased by 7.8%, reversing a 12.0% contraction the year before, while medium commercial vehicles expanded by 5.6% compared to a 6.4% decline in 2024.

Heavier transport segments lagged, with truck and bus sales ending the year down 3%, although this still represented a modest improvement on the negative 4% recorded previously.

Looking ahead, Bheki Mahlobo, The Common Sense’s economics and policy editor, said the new vehicle sales market is likely to remain supported in 2026. He noted that a further 50 basis points in expected interest rate cuts, combined with falling fuel prices and a stronger rand, should lift household’s disposable incomes and sustain demand for vehicle purchases.