South Africa’s automotive industry showed a strong performance in August 2025, thanks mainly to rising domestic demand. Despite global uncertainties and challenges in export markets, local vehicle sales reached their highest level in nearly six years.
In August, a total of 51,880 new vehicles were sold, an 18.7% increase from the same month last year. This growth was driven by more affordable models, improved consumer confidence, better credit availability, and steady growth in disposable income. Of these sales, about 83.3% were dealer sales, with the rest split between rental companies, corporate fleets, and government purchases.
Passenger car sales alone hit 36,914 units, the highest since September 2015, up 22.5% from August 2024. Car rental sales made up 15% of this segment. Light commercial vehicle sales, including bakkies and mini-buses, also rose sharply by 15.1%, reaching 12,326 units.
However, the industry’s medium and heavy truck segments struggled, with sales down nearly 4% and 8.8% respectively. Medium trucks declined by 29 units, while heavy trucks and buses fell by 185 units compared to last August.
The main driver of this growth was domestic demand, supported by the South African Reserve Bank’s decision to cut the repo rate by 25 basis points to 7.00%, making borrowing cheaper for households and dealers. Improved credit conditions and modest income gains further boosted big-ticket spending, including vehicle purchases.
Inflation remained contained but edged slightly higher in July, with food and fuel prices influencing the increase. Fuel prices saw mixed movements—petrol prices decreased slightly, while diesel costs rose, affecting logistics and commercial fleets.
Exports of vehicles also increased, with 37,500 units shipped abroad in August 2025, a 6.2% rise from August 2024. Year-to-date exports are still 3% ahead of 2024, but increasing tariffs and global competition pose challenges ahead. The industry is exploring new markets and re-routing strategies to diversify.
Looking ahead, attention turns to SA Auto Week 2025 in Gqeberha, starting October 1. Under the theme “Reimagining the Future, TOGETHER,” the event aims to foster industry alliances, boost trade diplomacy, and support South Africa’s energy transition within the automotive sector. Vehicle sales figures for October will be released during the event, providing insights into the industry’s ongoing trajectory.