South Africa's new vehicle sales hit a decade high in 2025
Passenger vehicles lead recovery as market conditions
South Africa's new vehicle sales in 2025 were the strongest in a decade, driven by lower interest rates, subdued vehicle price inflation and broader model and price choice. Passenger vehicles led the recovery, increasing 20%, while Light Commercial Vehicles grew 8%, and New Energy Vehicle sales reached a fifth consecutive record, led by Hybrids, and Lightstone anticipates continued, but slower, growth in 2026.
A stronger than anticipated Rand helped keep vehicle prices competitive, while better than expected interest rate cuts - with the year ending at 10.25% versus the original consensus forecast of 10.75% - improved the affordability of financed purchases. Together these factors drove market to perform 8% ahead of Lightstone's initial estimates, made in March last year (AutoFC - Q1).
Total new vehicle sales: 2025 vs 2024
New vehicle sales
New vehicle sales in 2025, reported to naamsa, rose 16% to 597 194 (2024: 515 976 sales), driven by lower interest rates, low levels of new vehicle price inflation and a wide range of brand, model, and price options for customers to choose from.
Overall new vehicle sales in 2025 were the highest since 2015, when 617 650 sales were recorded.
Total new vehicle sales (naamsa)
The Passenger market was the biggest driver of growth at 422 465 units, a 20% jump on 2024 (351 551 sales), and the largest annual total since 2014 (438 937 sales). The Light Commercial market also grew in 2025 to 143 638 units sold, 8% higher than the 2024 figure (133 250).
The combined Light Vehicle market grew 17% from 2024, surpassing 560 000 sales for the first time since 2015.
Of the four other Commercial markets, three (Medium, Heavy and Bus) posted year-on-year growth, while the Extra-Heavy market, the largest of the four, contracted 10% from 2024, and offset the 19% jump in Heavy Commercial sales. This meant the combined total sales for the other Commercial markets (30 911 sales) ended 2025 1% behind the 2024 annual figure (31 175 sales).
Passenger and Light Commercial new vehicle sales
Year-on-year sales growth - Light Vehicles vs Other Commercials
Toyota continued to rule the roost as the most popular Light Vehicle (LV) brand domestically, contributing a quarter of the overall LV sales in 2025. Suzuki moved into second spot with a 13% share, moving Volkswagen down to third place (10% market share). Elsewhere in the Top 10 LV brands, Chery continued its growth path since entering the Top 10 in 2023, from 10th to 6th in just two years, while Nissan and Renault dropped off the list to be replaced by the returning Haval and Mahindra.
Top 10: Who is in, who is out?
Top 10 Light Vehicle makes in South Africa
In the rankings for the Other Commercial makes, FAW strengthened its position at the top of the pile, ending 2025 with an 18% share of this combined market, ahead of Isuzu (12% share), which has reclaimed second position, and Mercedes-Benz (10% share). Changes in the Top 10 were mostly limited to positional switches, although Toyota entered the list and replaced Powerstar.
Top 10 other Commercial Vehicle makes in South Africa
Passenger vehicle sales in the New Energy category, as reported to naamsa, recorded a fifth successive year of record volumes in 2025, with 16 577 sold locally (77% were Traditional Hybrid, 17% Plug-in Hybrid, 6% Battery Electric). Plug-in Hybrid vehicle sales surpassed 1 000 units in a calendar year for the first time, soaring past that milestone to reach 2 808 units.
New Energy Passenger Vehicle sales (naamsa)
Indian-built LVs were South Africa's top-selling Light Vehicles in 2025, accounting for 38% of sales. Locally built LVs dropped to second place (31%), whilst Chinese-built vehicles rounded out the Top 3 with 16%.
The Suzuki Swift, Hyundai Grand i10, and Toyota Starlet remained the most popular vehicles from India in 2025. South Africa's leading locally built models were again the Toyota Hilux, VW Polo Vivo, and Ford Ranger, and the Chery Tiggo 4 Pro and Haval Jolion held their leading positions from China. The stylish, tech-focused compact crossover SUV Omoda C5 entered the top three Chinese-produced vehicles, replacing the GWM P-Series.
Origin country of new Light Vehicle sales (naamsa)
Although Indian-built vehicles still accounted for over half of imported Light Vehicle sales, their share decreased slightly as Chinese brands gained popularity.
Origin share of imported new Light Vehicle sales (naamsa)
Local production has remained consistent, with combined domestic sales and exports exceeding 600 000 for the fourth time in a decade.
The Volkswagen Polo was again the most-produced vehicle in South Africa, with almost 130 000 sold locally or exported in 2025. The Toyota Hilux and Ford Ranger also reported more than 100 000 vehicles produced in this category.
Local production volume estimates (naamsa)
Looking forward to 2026, with interest rates currently at a three-year low and the real possibility of further cuts this year, economic conditions appear favourable for further growth.
As inflation stabilises within the Reserve Bank's new target range, and the Rand continues to strengthen against major global currencies - resulting in lower vehicle price inflation - there is a strong prospect that the domestic market will continue to grow. However, this is unlikely to be at the same rate witnessed in 2025 as some form of consolidation can be expected.
