March 2025 marked the sixth consecutive month of year-on-year growth for South Africa’s new-vehicle market. With a notable 12.5% increase, sales climbed to 49,493 units, making it the best-performing month in nearly two years. Additionally, exports saw a significant rebound, surging 31.1% year-on-year to 39,477 units.
Key Trends in South Africa’s Auto Market
According to Naamsa, March was a “pivotal month” for the industry. Of all reported domestic sales, 86.8% were through dealerships, 7.3% were fleet rentals, 3.5% went to government purchases, and 2.5% were acquired by corporate fleets.
The growth was primarily driven by passenger vehicles, which saw an impressive 25.3% year-on-year increase, reaching 33,447 units. Meanwhile, light commercial vehicles (LCVs) declined by 8.4%, totaling 13,328 units.
Consumer Demand and Market Influences
Brandon Cohen, National Chairperson of the National Automobile Dealers Association (NADA), noted that South African consumers continue to show strong demand for new passenger vehicles, despite financial constraints. Factors such as rising fuel prices, electricity costs, and stringent credit approvals are affecting purchasing behaviors. However, affordable financing options have helped sustain the market.
WesBank highlighted that the auto industry has managed to defy economic turmoil, with six straight months of growth. The upcoming VAT increase may have prompted some consumers to accelerate their purchases, but stable interest rates have provided relief for affordability.
Top-Selling Automotive Brands in March 2025
March 2025 saw some interesting shifts in brand performance. Toyota retained its number one spot with 11,660 units sold. Suzuki continued its strong performance, securing second place with 5,284 units, while Volkswagen Group settled in third at 4,913 units. Other notable performances included:
- Toyota – 11,660 units
- Suzuki – 5,284 units
- Volkswagen Group – 4,913 units
- Hyundai – 3,103 units
- Ford – 2,907 units
- Isuzu – 2,759 units
- Nissan – 2,303 units
- Mahindra – 2,253 units
- GWM – 2,066 units
- Chery – 1,904 units
Mahindra posted record numbers with a 39.9% increase, while Nissan surged by 53.8%. The growing presence of Chinese brands, including GWM and Chery, continues to influence the market, as affordability and specifications drive purchasing decisions.
Future Outlook for South Africa’s Auto Industry
As 2025 progresses, several factors will shape South Africa’s automotive landscape. Naamsa points to stable borrowing costs as a positive indicator, though challenges such as rising living expenses, energy constraints, and the VAT hike could present hurdles.
While used vehicles remain a popular choice during economic downturns, current trends show stronger growth in new-vehicle sales. The arrival of more Chinese brands has expanded market competition, offering consumers a wider selection at competitive prices.
Another key factor is fuel costs, which are expected to decline in April. Lower fuel prices could sustain consumer confidence and drive further sales growth in the second quarter. However, economic and political uncertainties remain, and their impact on the auto sector is yet to be seen.
Looking for a Second-Hand Car?
If you’re considering a second-hand vehicle, South Africa has plenty of options. Browse a wide selection of pre-owned cars at Auto24, where you can find vehicles suited to various budgets and needs. Check out models from Toyota, Nissan, and Suzuki available at Auto24 for competitive deals.
For the latest automotive updates, reviews, and driving tips in South Africa, visit iMotoNews. You can also explore insights on vehicle financing at WesBank and stay updated with auto industry trends via Naamsa.
