The South African new-vehicle market closed 2025 on a distinctly positive trajectory, reinforcing new-vehicle sales momentum as a central theme in automotive and economic discourse. A combination of pent-up demand, improved macroeconomic conditions and a surge of value-oriented brands helped deliver strong year-end figures and bullish forecasts for the year ahead.
December 2025 Caps Off Strong Year
According to data released by cars.co.za and reported by motor industry bodies, December 2025 saw 48,983 new vehicles sold in South Africa, representing a 19.2 % year-on-year increase compared with December 2024. This marked a powerful conclusion to the year, contributing to a full-year sales total close to 597 000 units, one of the highest totals in nearly a decade.
The monthly figures also tell a nuanced story about segment dynamics: passenger car sales surged (up more than 20 percent), light commercial vehicles rose by nearly 24 percent, while heavier commercial vehicle segments experienced softer results.
Brand Movements: VW and Emerging Value Players
Within the brand standings, Volkswagen retook its traditional runner-up place behind Toyota, which maintained its leadership position in the market. This restoration of market ranking for VW underscores resilience among established manufacturers even amid intensifying competition.
Notably, Jetour, a relatively new entrant from China, broke into the top ten brands in December, highlighting the growing influence of emerging value-focused marques on local buyers.
Meanwhile, Indian manufacturer Mahindra continues to outperform several legacy brands, most recently outselling rivals such as Nissan, BMW and Mercedes-Benz in December’s sales tally. Mahindra’s competitive pricing, expanded model lineup and strategic local investment have bolstered its appeal, positioning it as one of the fastest-growing brands in South Africa.
This shift in brand dynamics echoes analyses from BusinessTech, which highlight value and growth brands, particularly those offering affordability without sacrificing features, outperforming some traditional market incumbents.
2026 Outlook: Continued Upward Momentum
The National Association of Automobile Manufacturers of South Africa (NAAMSA) projects that new-vehicle sales in 2026 will improve by approximately 9 percent to 11 percent compared with 2025. This forecast reinforces the narrative that the recovery seen through 2025 is not transitory but part of a sustained upward trend supported by easing interest rates, vehicle affordability and stronger consumer confidence.
Factors such as reduced vehicle price inflation, liquidity from policy reforms and ongoing structural improvements in the wider economy are expected to underpin demand. Growth momentum is further buoyed by both local production strengths and the continued inflow of competitively priced imports.
The combined data from 2025 underscores several key themes shaping South Africa’s automotive landscape:
Recovery and Growth: New-vehicle sales volumes have climbed back to pre-pandemic levels and, in some metrics, reached heights unseen in more than a decade.
Market Realignment: Value-driven brands from China and India are gaining traction alongside established players, reflecting shifting consumer priorities around pricing, features and total cost of ownership
Forward Look: With favorable market conditions and industry forecasts pointing to further increases in unit sales for 2026, industry observers and stakeholders remain optimistic about continued momentum.
In sum, the continuing conversation around new-vehicle sales momentum is grounded not only in headline growth figures but in deeper structural shifts within the South African automotive market, shifts that are redefining competition and reshaping how value is delivered to consumers.
Sources : The Citizen, Grobank.co.za, BusinessTech & Newsroom
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