South Africa’s new vehicle market delivered its strongest performance in a decade this October, with domestic sales reaching 55 956 units, up from 51 880 units in September.

This is according to new data from NAAMSA, a business group which represents the South African automotive sector.

The sales data marks the highest monthly total since March 2015. Lower inflation, a stronger rand, and interest rate cuts by the South African Reserve Bank (SARB) all contributed to the improved demand, resulting in a sharp annual increase of 16.0%, compared to October last year.

Dealer sales were 44 278 units in October, accounting for 79.1% of all new vehicles sold. The vehicle rental industry continued to support overall volumes, purchasing 16.6% of total units, while government and corporate fleet buyers accounted for 2.2% and 2.1%, respectively.

New passenger vehicle sales saw a significant jump, rising to 39 610 units from 34 503 units in September. This is the highest monthly total for passenger vehicles since October 2014, and represents an annual increase of 14.8%, compared to October 2024. Vehicle rental sales played a significant role, accounting for 21.7% of new passenger vehicle sales, a figure that underscores strong pre-holiday travel demand.

Sales of light commercial vehicles, including bakkies and mini-buses, increased to 13 361 units from 13 077 units in September 2025. The annual increase was 23.9%, with 10 782 light commercial vehicles sold in October 2024.

Medium- and heavy-commercial vehicle sales also rose, but to a lesser degree compared to other vehicle categories. Medium-commercial vehicles registered 809 units, up from 740 units in October 2024, representing an annual increase of 9.3%.

Bheki Mahlobo, Economics and Policy Editor at The Common Sense, said that: “With the SARB having delivered a cumulative 125 basis points of rate cuts since September 2024 and the potential for another cut of 25 basis points on 20 November, we can continue to see strong vehicle sales.” Mahlobo added that: “The firmer rand has also eased imported inflation and reduced pressure on household budgets, pointing to higher demand for new passenger vehicles as we head into the end of the year.”