South Africa’s automotive market is accelerating like never before. In September 2025, new vehicle sales surged to 54,700 units—a massive 24.3% increase from the 44,000 sold in the same month last year. This marks the highest monthly figure since September 2015, signaling renewed consumer confidence despite economic headwinds. Passenger cars led the charge at 38,603 units (up 28%), followed by light commercial vehicles at 13,078 (up 19.7%). Toyota dominated with 14,146 sales, ahead of Suzuki’s 6,072, while imports from brands like Chery and GWM added diversity to the market.
The Driving Forces Behind the Surge
What fueled this boom in car sales? The key factors are easing inflation and lower borrowing costs. Consumer price inflation dipped to 3.3% year-on-year in August 2025—below forecasts of 3.6%—thanks to softer food, fuel, and transport costs. This decline boosted household disposable income, making big-ticket purchases like cars more attainable. A stronger rand, supported by a R20.3 billion trade surplus in July, has also curbed imported inflation and vehicle price hikes, while fierce competition has kept entry-level models affordable.
The South African Reserve Bank (SARB) held its repo rate at 7% in September, but prior cuts totaling 125 basis points since late 2024 have already eased financing costs. Naamsa CEO Mikel Mabasa noted: “This disinflationary trend offered relief for car buyers, particularly in the small and entry-level categories where cost sensitivity is highest. While purchases have benefited from these cuts, further easing would be especially helpful for households considering higher-value or discretionary vehicle purchases.”
Naamsa President Billy Tom added: “Domestic new vehicle sales look set to exceed pre-pandemic levels for the first time in five years, driven by consumer demand for affordable cars.” Year-to-date, sales are up 15.6% at 436,854 units, while exports have jumped 32.9% to 38,772, showing global appetite for South African-made vehicles.
What This Boom Means for Your Wallet
For ordinary South Africans, this sales boom translates into real savings. Lower inflation means more money for deposits, while reduced financing rates—now around 10–11% for prime borrowers—cut monthly repayments. A R400,000 car loan at 10.5% over five years now costs about R8,700 per month, compared to R9,500 at last year’s peaks. Dealerships, facing high stock from imports, are offering incentives like zero-interest financing or cashback deals, especially on small cars and bakkies.
Still, challenges remain. Persistent load-shedding and unemployment cast shadows over consumer confidence. Experts predict annual sales could reach 600,000 if interest rates ease further, which may unlock even better bargains by year-end.
Tips for Buyers Eyeing Affordable EVs
Electric vehicles (EVs) are becoming increasingly attractive amid South Africa’s green transition, with more affordable options hitting the market. The BYD Dolphin Surf leads as the cheapest EV at under R350,000, offering a 340km range and features like adaptive cruise control—perfect for urban drivers. Other budget-friendly choices include the Dayun S5 (R399,900, 330km range) and the GWM Ora 03 (R686,950, 310km).
- Hunt incentives: Make use of tax rebates of up to R100,000 and subsidies for home chargers through the EV incentive program.
- Compare total ownership costs: EVs run at around R0.50/km vs. R2/km for petrol, saving up to R20,000 annually on fuel.
- Check financing options: Consider bundling with solar for off-grid charging; aim for a 20% deposit to secure lower rates.
- Look at warranties: Chinese brands like BYD offer up to eight years on battery coverage, reducing long-term risks.
With sales booming and incentives rising, now is a prime moment to consider upgrading sustainably without overstretching your budget.