The South African automotive industry experienced a notable increase in new motor vehicle sales in August compared to the same month in 2024. The industry also achieved high gains in other vehicle sales categories.
The Automotive Business Council (NAAMSA) reported an 18,7% increase in new vehicle sales in August 2025. The industry has sold 51,880 new vehicles, an increase of 8,188, compared to August 2024, which saw 43,692 sales.
This is the highest sales recorded since October 2019.
Several reasons behind the boost in motor vehicle sales
“New vehicle sales in August maintained upward momentum domestically to its highest level since October 2019, while export volumes also gained traction despite the fact that manufacturers and suppliers continued to adjust to renewed US tariff uncertainty and increasing global competition,” said a NAAMSA statement.
The positive sales outcomes have been attributed to: ongoing affordable vehicle range options, increased consumer confidence, favourable credit conditions, and disposable income recoveries.
The report indicates that 83,3% of the vehicles were sold to dealerships, 12,1% were purchased by the vehicle rental industry, 2,3% went to corporates and government departments also procured 2,3% of the new vehicles.
August 2025 delivered a marked increase in new passenger vehicle sales. This category of vehicles sold 36,914 units. In August 2024, only 30,128 sales were recorded.
NAAMSA notes that the August 2025 sales of new passenger vehicles to be the highest since September 2015.
Here’s a breakdown of the distribution of new passenger vehicles in August 2025. Car rental accounted for 15% of sales. Cumulative sales of 12,326 included mini-buses, light commercial vehicles, and bakkies.
On the downside was the sale of medium and heavy trucks, which achieved sales of 717 and 1923, respectively. In August 2024, 746 medium-level trucks and 2108 heavy duty trucks were sold.
“Core domestic demand remained a key driver of new vehicle sales growth in August. The South African Reserve Bank’s [SARB] decision at the end of July to reduce the repo rate by 25 basis points to 7% further reinforced this momentum,” stated NAAMSA.
NAAMSA indicated that changing market conditions were favourable to household costs. Hence, access to credit for vehicle sales increased.
How do you feel about the increase in vehicle sales in South Africa?
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