Strong demand drives SA to decade-high vehicle sales

The total vehicle sales in October reached 55 956 units, the highest monthly total since March 2015, while passenger car sales of 39 610 marked the strongest performance since October 2012.

“These figures are even better than we anticipated,” says Brandon Cohen, National Chairperson of the National Automobile Dealers’ Association (NADA). “Foot traffic in franchised dealerships was encouraging throughout October, but the magnitude of these results, achieved despite tight household budgets and historically low consumer confidence, is remarkable.”

The FNB/BER Consumer Confidence Index fell to -13, signalling ongoing consumer strain amid inflation, job concerns and tighter household budgets. Yet, as Brandon notes: “Interest rate cuts earlier this year, easing fuel prices and a stronger rand, which is now trading around R17.30 to the dollar, have all helped to improve affordability at the point of sale.”

South Africa’s oil import bill has benefited from crude prices stabilising around $65 a barrel, while inflation remained within expectations, supporting consumer purchasing power.

The overall new vehicle market grew 16% year-on-year and 2.3% month-on-month, with year-to-date sales up 15.7% compared to the same period in 2024.

“Lower rates and improved liquidity earlier in the year, including the two-pot pension withdrawals, gave the market a meaningful boost. While that initial effect has tapered off, demand remains firm thanks to more competitive pricing, attractive finance offers as well as affordable models from new foreign entrants,” Cohen added.

Dealers also report that finance approvals and value-added product (VAPS) sales have remained strong, suggesting that buyers are not only purchasing but also protecting their assets, a sign of growing long-term confidence.

Looking ahead, Brandon says: “We expect the market to hold steady into year-end, supported by Black Friday promotions as well as continued rand stability. From Wednesday, the retail prices of both grades of petrol (93 and 95) will reduce by 51c a litre, while the wholesale price of 0.05% sulphur diesel drops by 21c and the 0.005% sulphur diesel by 19c, providing further relief for consumers and businesses alike.

“There are still uncertainties ahead, which include the upcoming interest rate decision to the roll-out of AARTO and broader macroeconomic pressures, however, consumers’ appetite for new vehicles remains resilient,” he says.