“The new car buying trend has continued unabated into the new year, with January figures reflecting a 7.5% increase in total vehicle sales and passenger car volumes up 7.1%. This is a welcome and encouraging sign for the local motor industry at a time when both the domestic and global economies remain in a state of flux,” said Ryan Seele, executive committee member of the National Automobile Dealers’ Association (NADA), following the release of the latest monthly sales figures by naamsa | The Automotive Business Council.
Seele noted that January sales figures are traditionally slightly distorted, as many vehicle purchases are concluded in December for delivery in the new year, often supported by year-end incentives from original equipment manufacturers (OEMs).
“While 2025 exceeded most expectations, January has continued with a strong set of numbers, which suggests that these results reflect genuine market momentum rather than a seasonal anomaly,” he said. “January typically sees a moderation in volumes, but this year has clearly proven different.”
He added that demand continues to be concentrated in the sub-R400 000 price bracket, reinforcing the importance of affordability in the current economic environment. “At the same time, there are still significant waiting lists for some of the more sought-after luxury vehicles, which points to sustained demand across select higher-end segments of the market.”
Retail sales channels delivered a solid performance in January, accounting for 85.4% of total vehicle sales. Deliveries to rental companies also recorded growth, contributing 10.9% of overall sales and 13.3% of the passenger car segment.
Total vehicle sales reached 50 073 units in January, representing an increase of nearly 3 500 vehicles, or 7.5%, compared to January 2025. Passenger car sales totalled 37 190 units, reflecting a year-on-year improvement of 7.1%.
Light commercial vehicle sales remained a key contributor to overall performance, with 10 996 units sold during the month, an increase of 11.1% compared to the same period last year. Medium and heavy commercial vehicle sales were more muted, reflecting broader logistics and freight dynamics, including ongoing supply constraints in parts of the heavy commercial segment and a gradual shift of some freight volumes back to rail.
Commenting on the interest rate environment, NADA noted that while interest rates were left unchanged by the South African Reserve Bank, stability in borrowing costs continues to provide a degree of certainty for consumers and businesses alike. The organisation reiterated that future interest rate relief would further support vehicle affordability and reinforce the positive momentum currently evident in the market.
Additional encouragement for consumers comes in the form of a fuel price reduction effective from 3 February, which is expected to provide some relief to household budgets, ease transport and logistics costs, and contribute positively to overall mobility and vehicle usage levels.
