Car sales in South Africa rise by 13.6% in the first half of the year

BUSINESS NEWS - South Africa’s automotive industry is currently experiencing a period of strong activity and transformation, both in the new and pre-owned vehicle markets.

Despite pressures from global trade tensions and the challenges facing local manufacturing, the latest data reveals continued growth in sales during the first half of 2025.

This dynamic is driven mainly by a favorable economic environment, an increasing supply of imported models, and evolving consumer preferences towards more affordable and reliable options.

In June, new vehicle registrations reached 47,294 units, reflecting an 18.7% increase compared to the same month in 2024. Passenger cars led the way with 32,570 units sold, a year-on-year rise of 21.7%, while light commercial vehicles, such as vans and minibuses, accounted for 12,129 registrations, up 14.9%.

Overall, the cumulative figure for the first half of the year shows a 13.6% rise, confirming a solid recovery in both private and fleet demand.

This renewed momentum is largely the result of lower interest rates, a relatively contained inflationary context, and easier access to credit. In addition, the arrival of competitively priced imported models has expanded the range of options available to South African buyers, who are increasingly focused on value for money.

As a matter of fact, between January and May, imports of new light vehicles by established manufacturers rose by 25.6%, while independent importers increased their operations by 33.4%. In contrast, local production dropped by 14%, reflecting the impact of foreign competitiveness on the domestic industry.

When analyzing the brand rankings, Toyota maintained the top spot in June with 11,690 units sold, followed by Suzuki with 5,221 and the Volkswagen Group with 4,973. Completing the top 10 for the month were Ford, Hyundai, Chery, Isuzu, Mahindra and BMW.

At the same time, the used car market also showed strong performance. In May, transactions in this segment reached a value of R13.65 billion, representing a 21.1% increase compared to May 2024. A total of 31,741 units were sold—an 11.1% month-on-month rise and a 14.9% year-on-year increase.

The average selling price reached R428,627, indicating an upward trend across all indicators.

Ford Ranger led preferences, among pre-owned models, with approximately 2,000 units sold. It was followed by the Toyota Hilux with 1,584 units and the VW Polo Vivo with 1,283. Specifically, the 1.4 version of the Polo Vivo was the standout variant of the month, with 1,005 registrations. Other models with strong figures included the VW Polo 1.0 TSI, Toyota Hilux 2.8 GD-6, Ford Ranger XL and Hilux 2.4 GD-6.

This scenario can be partly explained by customer loyalty: four of the five top-selling used models have remained in leading positions since 2020. This loyalty is linked to perceptions of durability, reliability, and resale value offered by these brands.

In this context, Toyota, Volkswagen, and Ford currently account for more than 50% of vehicle financing transactions in 2025, with market shares of 18%, nearly 18%, and almost 14%, respectively.

On the other hand, buying trends reflect growing interest in crossovers and fuel-efficient hatchbacks. Notable examples include the Toyota Corolla Cross, VW Polo Vivo, and Toyota Starlet, which posted year-on-year growth of 35.2%, 34.3%, and 32.9%, respectively.

In contrast, premium sedans such as the Mercedes-Benz C-Class experienced a 19.2% decline over the same period, suggesting a shift in demand towards more practical models with lower maintenance costs.

Another interest detail remains in the fact that Chinese brands such as Chery and Great Wall Motors have gained ground, both now ranking among the country’s 15 most financed. Their rise is attributed not only to competitive pricing but also to improved perceptions of quality, design, and after-sales support.

However, manufacturers outside the top 15 account for just over 10% of financed sales, highlighting a highly concentrated market. Despite this, the growing presence of new brands and models signals gradual diversification, driven by shifts in the global economy and in consumer preferences.

Factors such as access to financing, availability of spare parts, and vehicle insurance are also beginning to influence purchasing decisions—particularly in a market where total cost of ownership is becoming increasingly relevant.

Electric Vehicle Market

While South Africa’s automotive industry has seen strong momentum during the first half of 2025, the new energy vehicle (NEV) segment—which includes battery electric vehicles (EVs), traditional hybrids (HEVs), and plug-in hybrids (PHEVs)—presents a more complex picture. Although adoption of these models continues to rise, first-quarter data shows that EV penetration remains low and faces notable barriers.

According to Naamsa, 3,487 NEVs were sold in the first three months of the year—a 14% year-on-year increase that represents 2.4% of total new vehicle registrations. While this figure improves on the 1.47% achieved in 2023, it falls below the 3% recorded for all of 2024, pointing to a slowdown in the electric market’s momentum.

This stagnation is largely due to a 16.4% drop in EV sales, which totalled just 276 units. Furthermore, Naamsa’s data has yet to include figures from BYD—one of the most promising manufacturers—as the brand has not yet started official reporting. In contrast, PHEVs have seen sharp growth, with sales up 70.9% year-on-year to 241 units, indicating the potential for a record number of registrations in 2024.

HEVs, led by the locally produced Toyota Corolla Cross in Prospecton, maintained their lead with 2,970 units—accounting for 85.2% of total NEV sales.

Beyond new vehicle registrations, the used market also shows increasing interest in hybrid and electric technologies.

A study by Lightstone Auto shows that while these models made up just 0.5% of financed used car purchases in 2023, their share surpassed 1% in 2024.

This modest but notable growth is attributed to a greater supply of affordable pre-owned models and growing consumer familiarity with alternative powertrains.

One of the main factors slowing EV expansion in South Africa has been price. In the early years, electric and hybrid models were imported mainly by premium brands such as BMW and Lexus, placing them out of reach for most buyers.

However, recent months have seen a significant drop in prices. Hybrids such as the Toyota Corolla Cross and Haval Jolion now range between R494,400 and R519,950, while the Chery Tiggo Cross CSH has become the country’s most affordable HEV, priced at R439,900.

In the PHEV segment, entry-level pricing has dropped from over R1,000,000 to around R600,000 thanks to new offerings from BYD and Chery.

Even the most affordable EVs, like the Dayun S5, are now selling for around R399,900—well below earlier price points. In addition, the growing variety of models and intensifying competition among manufacturers have led to a broader selection tailored to different budgets and needs.

Nevertheless, structural challenges remain. The EV charging network remains insufficient, particularly outside Johannesburg, Cape Town and Durban, creating uncertainty for potential buyers.

Added to this is the volatility of international trade—such as tensions with the United States, a key export destination for South Africa—which could impact the strategy for importing and distributing new electric models.

In conclusion, while South Africa’s NEV segment is progressing strongly in hybrid and PHEV sales, widespread EV adoption will require overcoming pricing and infrastructure challenges.

If incentive policies are strengthened, the charging network is expanded, and more affordable vehicle options become available, the market could maintain its upward trend and contribute more significantly to the decarbonisation of the country’s vehicle fleet.