New vehicle sales surge 12.7% in September: These were the top 15 manufacturers - IOL

Toyota enjoyed a bumper month with over 15,000 sales across South Africa.

Despite the numerous headwinds facing the economy, South Africa’s new vehicle market continued to show resilience in September.

According to Naamsa, overall new vehicle sales grew by 12.7% compared with the same month last year to 61,645 units.

Passenger cars led the way, climbing 14.7% year-on-year to 44,291 units, with the rental market accounting for 18.4% of sales. Light commercial vehicles, bakkies and minibuses grew by 9.6% to 14,361 units. Medium commercial vehicle sales increased by 3.4% to 789 units, while heavy truck sales rose by 12.1%. Bus sales, however, declined by 49.3% to 70 units.

Some 81.4% of all vehicle sales took place through dealer channels, Naamsa said, followed by the rental industry at 13.8%, government at 2.6% and corporate fleets at 2.2%.

Export sales, at 31,473 units, were down 18.8% compared with the same month last year.

On the sales charts, Toyota enjoyed a strong month, selling 15,366 new vehicles. Suzuki took second spot with 6,668 sales, ahead of Volkswagen Group’s 5,968 and Ford’s 3,190.

South Africa’s economic environment became more challenging in September, with rising fuel and energy costs adding to inflation and pressure on household purchasing power. Yet new vehicle sales continued to grow at a double-digit pace despite worsening affordability conditions.

According to Naamsa, much of this resilience can be attributed to the increasingly competitive and diversified structure of the new vehicle market.

“The expansion in the number of brands, models and price points available to consumers has intensified competition and broadened access to mobility,” the industry body said.

“With affordability remaining a central consideration for vehicle buyers, competitive pricing, attractive financing propositions and a wider range of entry-level and value-oriented products are helping to sustain demand even as traditional macroeconomic fundamentals remain constrained.”

WesBank senior economist Thanda Sithole said the financial institution’s data suggests that buyers are taking a more cautious approach to vehicle finance, with new-vehicle deals becoming smaller and longer, while used-vehicle deals grew in value. Fixed-rate finance gained popularity, while balloon payments became less common.

“The application trends suggest that customers are not simply stepping away from the market in response to affordability pressures; they are adjusting how they structure their vehicle purchases,” Sithole said. “For consumers, the focus is increasingly on managing the total cost of ownership and finding a finance structure that provides greater certainty over the life of the agreement.”