South Africa’s new-vehicle market maintained its momentum in August, with aggregate sales of 57 898 units representing an increase of 11.4% compared with the same month last year.
“The appetite among South African consumers, car rental agencies and businesses for new vehicles remained strong in August, despite continued pressure on household budgets and rising operating costs,” said Brandon Cohen, National Chairperson of the National Automobile Dealers’ Association (NADA).
Passenger-car sales increased by 11.6% year on year to 41 216 units, while light commercial vehicle sales rose by 11% to 13 727 units.
The vehicle rental industry accounted for 13.4% of total sales and 17.2% of passenger car sales, indicating confidence in the outlook for business and tourism. Dealer networks nevertheless remained the primary route to market, accounting for an estimated 81.8% of all vehicles sold.
“The rental industry made an important contribution, but dealers also enjoyed a positive month,” Cohen said. “The performance shows that consistent marketing, knowledgeable sales teams and good customer service continue to pay off in a highly competitive market.”
Commercial vehicle performance provides encouraging economic signals
Commercial vehicle sales were positive overall. Medium Commercial Vehicle (MCV) sales increased by 16.3%, while extra-heavy commercial vehicle sales rose by a notable 24.2%. Heavy commercial vehicle sales, however, declined by 8.8%, potentially reflecting stock shortages affecting more than one brand.
“The growth in the extra-heavy segment is particularly interesting given rising fuel costs and reduced activity in commodities such as iron ore,” said Martin van den Berg, NADA Regional Executive. “It may point to increased activity in other areas of the economy, including construction, with dealers reporting stronger enquiries for vehicles such as tippers.”
Newer market participants, including Foton and Shacman, are also increasing competition and choice in the commercial vehicle sector.
Van Den Berg cautioned that diesel price increases of up to R3.15 a litre taking effect in September would place significant pressure on transport and logistics operators, particularly those unable to recover fuel-price fluctuations through their contracts.
“Commercial vehicles are productive assets. Operators must consider fuel efficiency, reliability, maintenance costs and uptime, rather than the purchase price alone,” he said.
Total cost of ownership shapes buying decisions
While price remains the starting point for many customers, dealers are seeing buyers pay closer attention to the total cost of vehicle ownership.
“Customers are asking more detailed questions about fuel consumption, finance, insurance, servicing, warranties and the products available to protect their vehicles over longer ownership periods,” Cohen explained. “This indicates that the buying process is maturing. Dealers cannot compete on price alone; transparent advice and dependable aftersales support are increasingly important.”
Rising fuel prices are also likely to sustain interest in new-energy vehicles. According to naamsa, 16 289 NEVs were sold during the first seven months of 2026, an increase of 88% compared with the same period last year and already equivalent to 97.5% of total NEV sales in 2025.
“Customers are increasingly asking dealers about hybrids, plug-in hybrids and battery-electric vehicles, but there is no single solution for every motorist,” Cohen said. “The right option depends on the customer’s budget, driving patterns and access to charging infrastructure.”
“Franchised dealers are well positioned to explain these technologies and help customers consider the complete ownership picture. For some, a hybrid may be the most practical route to greater fuel efficiency, while a plug-in hybrid or battery-electric vehicle may suit others.”
Cohen said August’s performance was particularly encouraging given the financial pressures facing consumers and businesses.
“The market remains resilient, consumers are becoming more considered in their decisions and dealers are adapting to more complex conversations about affordability,” he concluded. “We look forward to a positive close to the third quarter, while remaining mindful of the effect of higher fuel prices on households and commercial operators.”
