February new-vehicle sales in the domestic market improved by 7.3%, to 47 978 units, compared with the same month last year.

It is also the second month this year that importer Suzuki has taken over the number two spot from local manufacturer Volkswagen. Toyota, with its assembly plant in Durban, remains comfortably in the lead.

naamsa | The Automotive Business Council reports that the new-passenger-car market jumped by 17%, to 33 757 units, during February.

Sales of new bakkies, vans, small trucks and minibus taxis – light commercial vehicles (LCV) – dropped by 11.3%, to 11 802 units.

Medium-truck sales gained 11.8%, reaching 721 units, while heavy-truck and bus sales declined by 12.5%, to 1 698 units.

New-vehicle export sales dropped by 8.6%, to 34 656 units.

“The 75-basis-point rate cut since September, coupled with expectations of further monetary easing, continued to improve vehicle affordability and stimulate demand,” says naamsa CEO Mikel Mabasa.

“Private sector credit extension accelerated to 4.9% year-on-year in January, signaling increased liquidity and financing appetite, while employment gains of 132 000 in the fourth quarter of 2024 bolstered disposable income, supporting consumer spending.

“These factors contributed to the strong growth in the passenger-car segment, however, commercial vehicle sales – particularly the LCV segment – declined, reflecting ongoing pressures in business confidence and fleet renewal cycles,” he notes.

In the domestic market, inflationary risks remain a concern, with Eskom’s 12.74% electricity tariff hike, set for April, pointing to potential cost pressures for manufacturers.

Externally, the trade environment was less favourable, with vehicle exports contracting by 8.6%, reversing some of the gains seen in 2024, adds Mabasa.

“Despite expectations of looser monetary policy in key export markets, weaker demand and lingering trade policy uncertainties, particularly in the US, weighed on outbound shipments.”