South Africa’s automotive sector maintained its growth momentum with retail vehicle sales reaching the 42,401-unit mark in April 2025, an increase of 11,9% over the same period in 2024, according to the latest report from naamsa | the Automotive Business Council.
“Despite global economic headwinds and a relatively short trading month, the local auto sector, once again, delivered solid numbers, a pleasant surprise to even the most avid industry observers,” said Brandon Cohen, Chairperson of the National Automobile Dealers’ Association (NADA).
Gains in the passenger car segment of 4,350 units represent a 17% increase in the April 2025 sales figure of 30,101 units compared to the 25,751 units sold in the same month last year and point to the resilience of the local economy. However, it needs to be seen if the pending (now scrapped) VAT rate increase had anything to do with the positive numbers.
The surge in passenger car sales was accompanied by a 3,2% year-on-year increase in the light commercial vehicles (LCV) segment where 9,961 units were sold in April 2025 compared to April 2024’s 9,654 total.
“The growth in the LCV segment is especially encouraging, pointing to an economy that is in better shape than one would surmise,” said Cohen.
While finance approval rates remain under tremendous pressure, 87,9% of new vehicle sales came from franchised dealers, while 7% were to the rental industry. Sales to corporate fleets accounted for 2,7% of the April 2025 volume, and government sales represented 2,5%.
“With affordability still a major concern for the average consumer and the Reserve Bank likely to be cautious about interest rate decisions in the face of global economic pressure, it is with mild optimism that we look forward to the May sales numbers,” concludes Cohen.
