The new-vehicle market finally recovered to above 2019, pre-pandemic levels in 2025, says naamsa | The Automotive Business Council.

South Africa’s new-vehicle market reached 536 612 units in 2019.

Naamsa says that last year’s significant upward swing was tied closely to improvements in the South African economy, recent interest rate cuts, record-low vehicle inflation, an influx of affordable vehicle imports, as well as liquidity injection from two-pot retirement system withdrawals.

Total new-vehicle sales in the domestic market were up 15.7% in 2025, at 596 818 units, compared with 2024’s 515 976 units.

All segments saw growth, except for heavy trucks and buses, which were down 3%.

Medium-commercial vehicle sales expanded by 5.6% year-on-year, with light commercial vehicles up 7.8% and passenger cars up 20.1%.

New-vehicle exports from South Africa did not have quite the same success, but still managed to stay in the green, with exports up 4.4% for the year.

At 408 224 units, exports breached the 400 000 mark for the time, notes naamsa.

The industry body adds that it continues to monitor Europe – South Africa’s biggest new-vehicle export market – which has softened its 2035 ban on internal combustion engines from 100% of the market to 90%.

naamsa says this provides marginal reprieve for local vehicle manufacturers as they continue to navigate the global energy transition race.

It notes, however, that this regulatory reprieve “should not be misconstrued as an opportunity for policy inertia, or a relaxation of the requisite strategic pivot as the transition to clean mobility remains an existential priority, necessitating a sustained and accelerated policy review to safeguard South Africa’s export competitiveness”.

This warning comes as the South African automotive industry eagerly awaits direction from national government on its revised support to local vehicle and parts manufacturers in light of the worldwide move to electric vehicle production.

naamsa also warns that the export landscape remains complex.

“While South Africa is a regional leader, global geopolitical tensions and trade barriers are assessed as tilted to the downside.

“Reemergent tensions between South Africa and the US administration remain a source of potential volatility.

“The exclusion of South Africa from the 2026 G20 gathering, and legislative moves proposing a two-year African Growth and Opportunity Act extension that might explicitly exclude South Africa are being monitored closely.”

Looking at the local market, naamsa believes new-vehicle sales are poised for a further 9% to 11% improvement this year, especially as China’s declining domestic vehicle market is increasingly driving its manufacturers to seek growth in export markets.