The average price of new vehicles sold in SA in 2025 is 8.6% lower than in 2024, says WesBank, underlining the apparently unstoppable trend towards cheaper vehicles and brands.
Figures released on Friday by motor industry association Naamsa showed that 42,401 new cars and commercial vehicles were sold in April.
That was an 11.9% improvement on the 37,899 of April 2024. After four months of the year, aggregate sales totalled 186,433 — 10.6% more than the 168,634 of a year earlier.
New-car sales in April grew 16.9%, from 25,751 to 30,101. Year-to-date, they are 19.3% ahead — up from 110,526 to 131,877. All indicators point to the likelihood that, after a number of false starts, the full-year market in 2025 will finally return to pre-Covid levels.
Not everyone is celebrating, however. The composition of the market has changed enormously since 2019.
Toyota continues to comfortably outsell everyone else, but other established brands are struggling to stave off relative newcomers.
Most recent headlines have been about the Chinese invasion but imported Japanese brand Suzuki has arguably been the biggest winner so far.
Last month, Toyota sold 10,031 “light” vehicles (cars, bakkies and minibus taxis). Suzuki was next, with 5,977, followed by traditional market No 2 Volkswagen (3,906), Hyundai (2,989) and Ford (2,327).
In VW’s defence, it temporarily suspended local vehicle assembly last month to begin preparations for the introduction of a new car model, but it’s not the first time the German brand has been outsold by Suzuki.
After Ford, the 10 top sellers are rounded out by Chinese brands Great Wall Motors (including Haval) and Chery, then Japan’s Isuzu, France’s Renault and India’s Mahindra.
Well-known brands such as Kia, Nissan, BMW and Mercedes-Benz are further down the list, surrounded by the likes of Omoda, Jaecoo, Jetour, Foton and BAIC — all Chinese. More have said they plan to come to SA and join the fray. Others, like electric-vehicle giant BYD, are already here but aren’t yet reporting their sales.
While local sales are not expected to be impacted directly by policy decisions in the US in the short-term, the longer-term impacts on consumer and business sentiment ... could begin to be felt later in the year.
— Lebo Gaoaketse, WesBank marketing head
In a sign of the changing market, the Naamsa figures show that Chinese truckmaker FAW last month sold more trucks in SA than Mercedes-Benz sold cars — 456 against 452. The German carmaker did, however, export 6,600 from its East London assembly plant.
WesBank marketing head Lebo Gaoaketse said he expected the buying trend towards budget brands to continue. Consumers were becoming more realistic about vehicle affordability.
“WesBank data shows an average deal size shrinking 8,6% year on year, indicating the stresses of affordability on purchases and the continued trend to buy-down into smaller, more affordable vehicles. The competitive price-point of new Chinese entrants will also be influencing this shift as consumers seek alternative value in the market.”
Brandon Cohen, chair of the National Automobile Dealers’ Association, said the strength of April’s market was “a pleasant surprise to even the most avid industry observers”.
He was particularly pleased to see an improvement in sales of bakkies and minibuses, which had been in the doldrums for several months. Their recovery “points to an economy that is in better shape than one would surmise”, he said.
Sales of most categories of heavier commercial vehicles also outdid 2024. Naamsa CEO Mikel Mabasa said April’s numbers showed “determined market resilience”.
“Despite a brief return of load-shedding and domestic political uncertainty because of the VAT saga, the domestic macroeconomic environment provided a degree of stability. Inflation fell to 2,7% year-on-year in March 2025, marking the lowest level since June 2020, aided by a notable easing in fuel costs,” he said.
“The latest headline inflation rate should encourage the Reserve Bank to cut interest rates further, even though inflation is expected to trend higher in the second half of 2025.”
April’s vehicle exports also brought relatively good news.
In the month that US President Donald Trump imposed a 25% tariff on vehicle imports from around the world, SA exports numbered 31,822 — 6.6% fewer than the 34,088 of the corresponding month in 2024.
The cause of the decline, however, was VW’s temporary production suspension. Mabasa has suggested that SA exporters will feel the effects of the new US tariffs from July, after existing orders have been delivered.
Gaoaketse observed: “While local sales are not expected to be impacted directly by policy decisions in the US in the short-term, the longer-term impacts on consumer and business sentiment — as well as any potential economic fallout affecting household budgets — could begin to be felt later in the year.
“For the moment, the SA new-vehicle market shows positive signs of growth momentum, which is good all round for consumers and the economy alike.”
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