South Africa’s domestic new-vehicle market is on course to surpass its pre-pandemic peak for the first time in five years, buoyed by strong demand for lower-priced models, the auto lobby NAAMSA said on Wednesday.
NAAMSA president Billy Tom told the group’s annual conference that first-half performance underscored the sector’s resilience despite global and local headwinds, with consumer appetite lifting overall sales.
New-vehicle sales rose 14% in the first six months of 2025 from a year earlier, while imports jumped 30.2%, driven by “an influx of very affordable models,” many of them from China, Tom said.
Total 2025 volumes are “likely to exceed” 2019’s 536,612 units, after South Africa sold 515,850 vehicles in 2024, he added.
Shifts in buyer preferences are reshaping the market, said NAAMSA vice-president for retailing manufacturers Thato Magasa, citing new Chinese — and more recently Indian — brands expanding budget options. “South African consumers used to be very badge-conscious, but with rising living costs many are prioritising value,” he said.
Easing macro conditions have helped. Since 2024, interest rates have been cut by 125 basis points, while softer inflation and a modest pickup in growth have supported demand, Magasa noted.