South Africa’s new vehicle market delivered its strongest February performance in more than a decade, even as exports tumbled sharply under global pressure.
According to a media statement released by the Automotive Business Council (Naamsa) on Monday, aggregate domestic new vehicle sales reached 53,455 units in February 2026—the best February result since 2013. This marked an increase of 5,461 vehicles, or 11.4%, compared to the 47,994 units sold in February last year.
However, the upbeat local performance was tempered by a steep decline in exports. Vehicle export volumes dropped to 24,221 units, down 28.1% year-on-year from the 33,684 vehicles exported in February 2025. The industry body attributed the export slump to rising protectionism in key global markets and increasingly strict decarbonisation regulations that are weighing on South Africa’s manufacturing competitiveness.
Locally, the recovery appears broad-based. Passenger car sales climbed to 37,576 units, up 11.3% from the 33,750 units sold in February 2025. Light commercial vehicles—including bakkies and minibuses—rose 11.9% to 13,218 units, reflecting improved activity in goods-producing sectors as electricity supply stabilises and logistics reforms gain traction.
Medium commercial vehicle sales remained flat at 720 units, while heavy trucks and buses grew 13.6% to 1,941 units, signalling renewed investment confidence linked to infrastructure spending and freight volumes.
Of the total industry sales, 85% were dealer-driven retail transactions, while 9.6% went to the rental industry, 3% to government and 2.4% to corporate fleets—a sign of resilient consumer demand alongside steady fleet replacement.
The top 10 passenger vehicle brands in February were Toyota (12,272), Suzuki (6,562), Volkswagen (4,895), Hyundai (3,136), Ford (2,928), GWM (2,614), Isuzu (2,371), Chery (2,312), Mahindra (1,996) and Kia (1,746)—underlining intense competition in one of Africa’s most contested auto markets.
On the commercial vehicle front, the top 10 performers were FAW Trucks (516), Toyota (331), Isuzu (298), Daimler Truck (277), UD Trucks (199), Scania (138), Volvo (128), Sinotruk (108), MAN (105) and PowerStar (88).
The domestic sales momentum is supported by improving economic fundamentals. Headline inflation eased to 3.5% in January, while producer price inflation slowed to 2.2%, helping to moderate vehicle price increases. Private sector credit extension accelerated to 8.7% year-on-year in December, boosted by stronger corporate borrowing and gradually improving household credit uptake as interest rate cuts filter through to vehicle finance affordability.
The 2026 Budget also reinforced fiscal credibility, with the government projecting debt stabilisation over the medium term. Market expectations of further interest rate reductions this year continue to underpin confidence in interest-rate-sensitive sectors such as automotive retail.
Yet risks remain. Fuel levy increases effective 2 April 2026, rising global oil prices—with Brent crude breaching US$80 per barrel amid Middle East tensions—and a slightly weaker rand trading around R16.16 to the dollar could push transport costs higher.
While domestic demand is holding firm, rising energy prices and export headwinds may test the industry’s resilience in the months ahead.
