Domestic new vehicle sales are on track to exceed pre-pandemic levels for the first time in five years, driven by consumer demand for affordable cars, the president of vehicle industry group Naamsa said on Wednesday.
Speaking at Naamsa’s annual conference, Billy Tom told delegates the industry’s performance in the first half of 2025 demonstrated resilience, with strong consumer appetite driving growth despite global and local headwinds.
Domestic new vehicle sales in the first six months of the year increased by 14% year on year, with imports rising 30.2%, Tom said, noting “an influx of very affordable models”, largely from China.
The local market for new vehicles “is likely to exceed” 2019 levels for the first time in five years, Tom said. Pre-pandemic sales amounted to 536,612 units, while new vehicle sales in 2024 were 515,850 units.
The domestic new vehicle market has experienced a notable consumer preference shift, with various new entrants to the domestic market, in particular Chinese and more recently Indian car brands, offering options at the more affordable end of the pricing spectrum, said Thato Magasa, Naamsa’s vice-president for retailing car manufacturers.
“SA 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,” he said.
Local interest rates have been cut by 125 basis points since 2024, while easing inflation and a better economic growth rate have supported the new vehicle market to date, Magasa said.
Reuters
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