South Africa’s domestic new vehicle sales are poised to exceed pre-pandemic levels for the first time in five years, fuelled by growing consumer demand for affordable cars, the president of the National Association of Automobile Manufacturers of South Africa (NAAMSA) said on Wednesday.
According to Reuters, Billy Tom, speaking at the group’s annual auto conference, told delegates that the auto industry had demonstrated resilience in the first half of 2025, with strong consumer demand driving growth despite global and local challenges.
Domestic new vehicle sales rose by 14% in the first six months of the year compared to the same period in 2024, while imports increased by 30.2%.
Tom attributed the surge to ‘an influx of very affordable models,’ largely entering the market from China.
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He noted that the South African new vehicle market “is likely to exceed” 2019 levels, when sales reached 536,612 units, for the first time in five years.
In 2024, sales stood at 515,850 units. The market has also undergone a noticeable shift in consumer preferences, according to Thato Magasa, NAAMSA’s vice president for retailing car manufacturers.
He said the entry of Chinese and, more recently, Indian car brands offering lower-cost vehicles has reshaped demand.
“South African consumers used to be very badge conscious but with rising costs of living, many consumers have become more interested in value than in the badge,” Magasa explained.
He added that lower interest rates, easing inflation, and stronger economic growth have supported demand.
Since 2024, South African interest rates have been cut by 125 basis points, helping to create more favorable conditions for the new vehicle market.
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Image Credit: TRT Afrika
