South Africa’s automotive market is in top gear. New vehicle sales for the first four months of 2026 were the highest in more than a decade, and we estimate full year growth of around 5.3%. As we say in our article, Strongest start to New vehicle sales in 13 years, this would see 2026 outperform 2025, which was already the best year for domestic vehicle sales since 2015.
Vehicle price inflation was below headline CPI in April for the 27th consecutive month, no doubt a contributor to New vehicle demand while Used Light Vehicle sales have not been quite as buoyant. We're also pleased to introduce regular reporting on South Africa's formal Used Light Vehicle market, covering dealer-network B2C sales.
Younger buyers have also faced increasing pressure in recent years. Purchases by under-35s have declined over the past decade, relative to those over 35, as stagnant personal incomes, high youth unemployment and rising living costs have squeezed disposable income. But Young South Africans buy fewer cars than before points out that those who are purchasing vehicles are increasingly choosing Chinese brands, highlighting how affordability and value are reshaping buying behaviour.
New Energy Vehicles (which include Traditional Hybrids, Plug-in Hybrids and Battery Electric Vehicles) are also gaining momentum. In April 2026, NEVs exceeded 5% of New Light Vehicle sales for the first time, and New Energy Vehicles are becoming more price competitive explores whether NEVS are now shaking off the stigma of being too expensive.
Finally, the conflict in the Middle East has also affected the market. In Rising fuel prices cut vehicle sales and travel - and increase pressure on inflation we report that diesel-powered internal combustion engine (ICE) vehicle sales reported to naamsa fell to 27% of market share in April 2026 - down from around 30% - as record fuel prices placed additional pressure on demand. Despite these bumps in the road, South Africa’s vehicle market continues to demonstrate resilience and adaptability. We hope you enjoy this edition and welcome your feedback on topics you’d like us to cover in future.
