South Africa’s franchised motor dealers have once again demonstrated their mettle. In the face of significant economic, political, and global headwinds, the country’s retail automotive sector has posted exceptional growth, reinforcing its status as one of the most adaptive and resilient industries in the domestic economy.
According to the latest vehicle sales data released by naamsa | The Automotive Business Council, new vehicle sales surged to 47,294 units in June 2025, a sharp 18.7% increase from 39,850 units in June 2024. This brings year-to-date growth to 13.6%, highlighting the sustained consumer and fleet demand that has carried the industry through the first half of the year.
Passenger car sales remained the primary driver, with 32 570 units sold – up 21,7% year-on-year and 2,8% higher than May’s total of 31 673 units. The rental market accounted for 10,7% of this segment, while a wave of new models and brands continued to stimulate interest in the under R400 000 price band.
“Although coming off a low base in 2024,today’s numbers are not just a rebound – they are a show of force from South African motor dealers,” said Brandon Cohen, National Chairperson of the National Automobile Dealers’ Association (NADA). “When you consider the layered complexity of our operating environment – from domestic politics to global supply pressures – these figures reflect the unmatched responsiveness and customer focus of our dealer networks across the country.”
“The economy faced a wobble amid recent tensions within the Government of National Unity (GNU), which briefly weakened the rand. Simultaneously, conflict in the Middle East caused a temporary spike in oil prices. Although both issues stabilised relatively quickly – with the rand now trading in the R17,60 range and oil prices back below $70 per barrel – the latter was too late to prevent a substantial fuel price increase for July,” Cohen added:
Dealer retail channels accounted for 85.9% of total June sales, with the balance split between the rental market (8.2%), corporate fleets (3.2%), and government procurement (2.7%). Light commercial vehicle sales rose by 14.9%, totalling 12,129 units, while medium commercial vehicle sales grew by 24.7% to 652 units. The heavy truck and bus market softened slightly, declining by 3.1% year-on-year to 1,943 units.
While performance was strong at a national level, regional dynamics varied. KwaZulu-Natal remained subdued, whereas the Western Cape continued to outperform expectations. This regional divergence underscores the importance of hyper-local economic activity and dealer agility in adapting to consumer confidence levels.
“The majority of the growth we’re seeing is centred in the sub-R400,000 segment,” Cohen explained. “This price point remains critical for volume, affordability and trade-ins, with a direct knock-on effect on pre-owned sales performance. The used vehicle market is benefiting from improved affordability metrics, driven by softened interest rates, favourable vehicle pricing, and the rollout of the two-pot retirement savings reform.”
However, risks persist. “We’ve seen temporary rand weakness linked to political uncertainty, oil price volatility from ongoing global conflict, and unresolved trade tariff talks between South Africa and the United States. On the consumer front, inflation-adjusted take-home pay remains under pressure, and electricity tariff hikes from 1 July could dampen household sentiment,” Cohen noted.
“Nonetheless, South African consumers are showing remarkable resolve, and our dealer community is matching that with operational excellence and customer-centric innovation. If these trends hold, 2025 may yet prove to be a landmark year for our sector,” he concluded.
Thembinkosi Pantsi, Vice Chairperson of NADA, added that the used vehicle market performed surprisingly well in June. “We saw encouraging improvements in finance approval rates and affordability ratios. Independent dealers also reported better-than-expected volumes. While caution remains, there’s a definite uptick in consumer sentiment – and that’s something we haven’t seen for some time.”
As the industry heads into the second half of 2025, the upcoming tourism-driven rental cycle – particularly from the UK August holiday period and the traditional December/January rush – is expected to provide further uplift.
NADA is a proud association of the Retail Motor Industry Organisation (RMI).