South Africa's new vehicle sales had a strong third quarter, with 61,645 units sold in September, representing a 12.7% year-on-year increase. Despite affordability pressures and a recent 25 basis point increase in the repo rate to 7.25%, the market showed resilience. According to Naamsa, the motor industry body, passenger vehicle sales increased 14.7% to 44,291 units, while light commercial vehicles, bakkies, and minibuses grew 9.6% to 14,361 units.
Thanda Sithole, senior economist for FNB and WesBank, attributed the strong performance to consumers adjusting their vehicle purchase structures in response to affordability pressures. He noted that contract terms have lengthened, particularly for new vehicles, while a greater proportion of customers opted for fixed-rate finance, providing greater certainty around monthly repayments as interest rates change. Additionally, balloon payments featured in fewer deals, indicating a shift towards more manageable financing options.
The Reserve Bank's September decision to raise its policy rate by 25bps to 7.25% is expected to impact financing affordability in the months ahead. According to Brandon Cohen, chair of the National Automobile Dealers' Association (Nada), the late-month timing of the rate hike means September's sales figures cannot yet demonstrate the full effect on purchasing decisions. However, industry commentators noted that higher fuel costs and another expected hike on October 7 are encouraging more buyers to consider new-energy vehicles.
New-energy vehicle sales have shown significant growth, reaching 18,945 units during the first eight months of 2026, already 13.4% higher than the 16,703 sold throughout 2025. This trend is driven by increasing demand for electric cars, hybrids, and plug-in hybrids. In terms of market share, there were no major changes among the best-selling car brands last month, except for Isuzu leapfrogging GWM and Chery to move up two places.
Toyota maintained its market leadership last month, selling more than twice as many vehicles as its nearest competitor, Suzuki. The top 15 brands in September 2026 included Toyota, Suzuki, Volkswagen Group, Ford, Hyundai, Isuzu, Chery, GWM, Jetour, Kia, Renault, Omoda & Jaecoo, Mahindra, BMW group, and Tata. The top-selling brands showed varying degrees of growth, with some experiencing significant increases in sales.
The top 30 new models in September 2026 were also revealed, with the Toyota Hilux leading the list with 3,769 units sold. Other top-selling models included the Isuzu D-Max, VW Polo Vivo, Ford Ranger, and Chery Tiggo 4 Cross. The popularity of these models reflects the diverse preferences of South African consumers, who prioritize factors such as fuel efficiency, reliability, and affordability.
The strong performance of South Africa's new vehicle market in September is a positive indicator for the industry, which has faced challenges in recent times. As consumers continue to adjust to changing economic conditions, the market is likely to remain resilient, driven by innovative financing options and growing demand for new-energy vehicles. KEY_POINT: South Africa's new vehicle sales rose 12.7% year on year to 61,645 units in September. KEY_POINT: New-energy vehicle sales reached 18,945 units during the first eight months of 2026. KEY_POINT: Toyota maintained its market leadership last month, selling more than twice as many vehicles as its nearest competitor, Suzuki.
