June new-vehicle sales, at 47 294 units, were up 18.7% compared with the same month last year, “reflecting a sustained and broad-based recovery in consumer and fleet demand”, says naamsa | The Automotive Business Council.

The new-passenger-car market gained 21.7% in June, to reach 32 570 units.

Sales of new small trucks, bakkies, minibuses and panel vans increased by 14.9%, to 12 129 units.

Sales of medium trucks, at 652 units, were up 24.7%, while sales of heavy trucks and buses declined by 3.1%, to 1 943 units.

For the first half of the year domestic market new-vehicle sales were 13.6% ahead of the corresponding period last year, supported by an influx of affordable imported models.

For the first five months of the year new light-vehicle imports by local vehicle manufacturers – which typically assemble one or two models locally while importing the rest of the brand’s range – have increased by 25.6%, with imports by completely imported brands up by 33.4% compared with the same period last year.

In stark contrast to this, domestic sales of locally manufactured models decreased by 14% for the period, notes naamsa in an analysis of the numbers.

“Strong consumer demand, supported by positive economic fundamentals, have helped the automotive sector deliver impressive growth amid global turbulence,” says naamsa CEO Mikel Mabasa.

“We recognise this momentum as a reflection of supportive macro-economic policy choices and a highly adaptive industry.”

Despite the growing impact of geopolitical and trade-related disruptions, vehicle exports increased by 7.9% in June to reach 36 343 units.

Trade-related uncertainty, however, looms large, warns naamsa.

“South Africa’s automotive industry has long relied on a thriving export engine to sustain production volumes and attract investment,” says Mabasa.

“The current trade policy shifts, particularly from the US, pose a real challenge to this model.

“To address this, our response must be strategic: diversify markets, expand regional trade and continue to advocate for fair and rules-based global trade systems.”