South Africa’s new-vehicle market continued its positive run as sales increased by 12.7% in September, to 61 645 units, compared with the same month last year.

Passenger-car sales rose by 14.7%, to 44 291 units, with 18.4% of this number entering the car-rental market, reports naamsa | The Automotive Business Council.

Light commercial vehicle sales – bakkies, panel vans and minibuses – moved up by 9.6%, to 14361 units.

Medium commercial vehicle sales expanded by 3.4% in September, to 789 units, while heavy truck and bus sales inched down by 25 units, to 2 204 units.

Export sales, largely from South Africa’s six vehicle manufacturers, plummeted by 18.8% in September, to 314 723 units.

The September numbers saw the domestic market complete a strong third quarter, with local sales reaching 177 251 units, up 15.4% from the second quarter and up 12% from the corresponding quarter last year.

“September’s results are encouraging, and the stronger third quarter gives dealers and manufacturers a positive foundation for the final months of the year,” says National Automobile Dealers’ Association chairperson Brandon Cohen.

“The opportunity now is to sustain that momentum by matching the vehicles and finance options available to what customers need and can afford.”

For South African households, September’s sales results come amidst continuing pressure on monthly budgets.

The latest available consumer inflation figures showed yearly inflation of 4.4%.

The Reserve Bank’s subsequent decision to raise rates by 25 basis points to 7.25%, effective September 25, renders affordability a significant consideration for the months ahead.

The late-month timing means September’s sales figures will not yet demonstrate the full effect of the rate hike on purchasing decisions, notes Cohen.

“Affordability is measured in rands available at the end of each month.”

This month’s higher fuel costs may encourage even more buyers to consider hybrids and plug-in hybrids (PHEVs), he adds.

According to naamsa, new-energy-vehicle sales – hybrids, PHEVs and battery electric vehicles (BEVs) – reached 18 945 units during the first eight months of this year – a number which already exceeds the 16 703 units sold throughout last year.

Particularly noteworthy has been the acceleration in rechargeable technologies, adds the industry body.

By August this year PHEV sales had reached 6 919 units compared with 2 810 units during the whole of 2025, while BEV sales reached 2 622 units compared with 1 088 units for full-year 2025.

What the Money Tells Us
“September’s performance shows that demand for vehicles remains resilient, even as consumers face higher borrowing costs and renewed pressure from fuel and other living expenses,” comments FNB and WesBank senior economist Thanda Sithole.

“What is particularly encouraging from a financing perspective is that WesBank’s application data also indicates continued demand, with new-vehicle finance applications growing year-on-year.”

The average new-vehicle finance deal was also smaller than a year ago, while the average used-vehicle deal was larger.

Contract terms have also 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.

Balloon payments featured in fewer deals.

“The application trends suggest that customers are not stepping away from the market in response to affordability pressures; they are adjusting how they structure their vehicle purchases,” says Sithole.

“For consumers, the focus is increasingly on managing the total cost of ownership and finding a finance structure that provides greater certainty over the life of the agreement.”