A “bumper” local new-vehicle market, with resilient export demand, delivered more encouragement to the SA motor industry in August.
Figures released on Monday by vehicle manufacturers and importers association Naamsa showed 51,880 cars and commercial vehicles were sold in SA last month.
That was 18.7% more than the 43,692 of August 2024. Aggregate sales for the first eight months of this year totalled 382,259 — 14.5% up on the 333,765 at the same stage of 2024.
Exports are also outperforming last year. In August, the industry shipped 37,500 vehicles to foreign markets — a 6.2% improvement on the 35,310 of August 2024.
After eight months of the year, aggregate exports were 3% ahead — 269,765 against 262,027.
National Automobile Dealers’ Association (Nada) executive Ryan Seele described August as “another bumper month” — not just for sales but also for the number of potential customers visiting dealers.
He said a succession of interest rate cuts was encouraging consumers.
“While not all inquiries and test drives converted into sales immediately, the level of consumer interest and intent to purchase in the near future is very encouraging,” he said.
Car sales last month outdid August 2024 by 22.5%, rising from 30,128 to 36,914. After eight months of the year, they were 21.3% ahead — up from 222,009 to 269,351.
Most activity was at the budget end of the market.
“The market composition has shifted significantly over the years and August again showed strong activity in the more affordable segments,” Seele added.
Naamsa said improved household credit levels, with modest gains in real disposable incomes, “provided a stable foundation for sustained demand in the new-vehicle market”.
WesBank marketing head Lebo Gaoaketse agreed that favourable economic conditions, like lower interest rates and petrol prices, were alleviating pressure on household budgets.
“This is releasing the pent-up demand that has been in the market,” he said.
“Slowly, consumers and businesses are freeing up disposable budget that is enabling overdue replacement or allowing solutions to changing mobility needs.”
Last month’s sales of light commercial vehicles (mainly bakkies and minibuses) outperformed the previous August by 15.1%.
For the year so far, the improvement is a much slimmer 1.4%. Medium and heavy trucks are also enjoying increased year-on-year demand but extraheavies are down 13.7% in 2025.
The main culprit, said Seele, was subdued mining activity, “particularly in coal, where it is not viable to mine and transport new coal at current market rates”.
He explained: “Many fleets have been mothballed and some operators have even disposed of their fleets.”
Vehicle exports remained strong in August, despite the almost total loss of the US market because of its 25% import tariff. Naamsa however warned that exports to other markets would face increased pressure as other countries’ motor industries hurt by US tariffs shifted their export efforts to markets where SA had traditional footholds.
It noted: “The [SA] industry’s ongoing focus will remain to navigate potential rerouting and further market diversification strategies.”
Update: September 1 2025
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