South Africa’s new vehicle market delivered its strongest February performance in recent years, reflecting firmer domestic demand and reinforcing the view that the sector has moved beyond recovery into a phase of consolidation supported by improving local economic conditions. According to naamsa | the Automotive Business Council, aggregate domestic new vehicle sales reached 53,455 units in February 2026, an increase of 5,461 units, or 11,4%, compared to the 47,994 vehicles sold in February 2025.
This performance reflects a gradual improvement in affordability and steady demand, supported by easing inflation, better credit conditions and some progress in logistics and energy supply. While economic pressures remain, the local market has stayed resilient, with consumer demand holding up better than expected.
Passenger vehicle sales totalled 37,576 units in February, recording an increase of 11,3% year-on-year. Growth in this segment is largely driven by replacement buying and everyday mobility needs, with consumers remaining mindful of affordability. Car rental sales accounted for approximately 11,5% of new passenger vehicles sold during the month, reflecting a steady but measured recovery in fleet-related demand.
The light commercial vehicle segment also recorded a robust performance, with sales rising 11,9% year-on-year to 13,218 units. Demand in this category remains closely aligned with conditions in goods-producing sectors, which have shown gradual improvement as energy supply stabilises and logistics reforms begin to gain traction. Medium commercial vehicle sales amounted to 720 units, unchanged from the corresponding period, while heavy trucks and buses recorded a 13,6% increase to 1,941 units, pointing to selective confidence in freight and infrastructure-linked investment.
“Consumers remain highly sensitive to monthly instalments, deposit requirements and loan terms, with affordability and certainty driving purchasing decisions. Current financing trends show that buyers are focused on long-term value and manageable ownership costs, rather than non-essential upgrades,” says Lebogang Gaoaketse, Head of Marketing and Communication at WesBank.
From a macro-economic perspective, conditions remain broadly supportive. Headline inflation eased to 3,5% year-on-year in January, with core inflation at 3,4%, while producer price inflation for final manufactured goods slowed to 2,2%. This has helped contain vehicle price increases and support household purchasing power, although underlying input costs remain high.
However, February’s sales growth comes as cost pressures begin to shift. The 2026 Budget confirmed fuel levy increases from April, which will raise pump prices and add to operating costs for households and businesses. Together with higher global oil prices and currency volatility, this is likely to push up the overall cost of vehicle ownership in the coming months.
In addition, proposed adjustments to automotive tariff structures, including possible measures affecting imported vehicles, are still under discussion as part of broader industrial policy. While nothing has been finalised, any changes could affect vehicle pricing and competition in the market, highlighting the need to balance localisation objectives with consumer affordability.
“February’s results suggest that the domestic vehicle market is on firmer ground. Demand remains resilient, but it is increasingly value driven. Our data shows that consumers are approaching purchases with greater intent, prioritising affordability, certainty and long-term cost management over short-term decisions.”
Looking ahead, the outlook for the new vehicle market is cautiously optimistic. Easing inflation and expectations of further interest rate relief are supportive, but rising fuel costs and policy uncertainty will need to be carefully managed. Sustained growth will depend on maintaining affordability, providing policy clarity and ensuring consumers have access to reliable and cost-effective mobility solutions.
