By Staff Reporter

South Africa’s new vehicle market entered 2026 with encouraging momentum, continuing the positive trend established during 2025. According to the Automotive Business Council, domestic sales and exports both showed year-on-year growth in January, supported by improving economic conditions and steady consumer demand.

Total domestic new vehicle sales reached 50,073 units in January 2026, an increase of 3,479 vehicles or 7,5% compared to the same month last year. Export sales rose slightly to 24,568 units, representing a gain of 136 vehicles or 0,6% year on year.

Of the total domestic sales, an estimated 85,4% were dealer sales. Vehicle rental accounted for 10,9%, while corporate fleet and government purchases represented 2,1% and 1,6% respectively. Passenger car sales totalled 37,190 units, reflecting a 7,1% increase compared to January 2025. Car rental purchases made up 13,3% of passenger vehicle sales during the month.

Light commercial vehicles, including bakkies and minibuses, recorded a strong performance with sales of 10,996 units. This marked an 11,0% increase year on year, with demand continuing to reflect conditions in goods-producing sectors that are showing early signs of stabilisation.

In contrast, medium and heavy commercial vehicle segments remained under pressure. Medium commercial vehicle sales declined by 5,9% to 542 units, while heavy trucks and buses fell by 4,3% to 1,345 units. Fleet replacement activity remains closely linked to infrastructure investment, logistics performance, electricity costs, and broader business confidence.

Vehicle exports benefited from currency stability and easing imported input costs, although industry body naamsa cautioned that rising protectionism in key export markets poses ongoing risks. Shifts in global trade policies and supply chain realignments are expected to increase pressure on South Africa’s export competitiveness over the medium to long term.

From a macroeconomic perspective, the market continues to benefit from lower inflation and a more stable monetary environment. Inflation remains within the South African Reserve Bank’s target range, while expectations of interest rate cuts later in 2026 are supporting buyer confidence. The stronger Rand has also helped reduce imported inflation pressures, contributing to more moderate vehicle price increases.

Looking ahead, naamsa highlighted the importance of finalising South Africa’s automotive policy framework review. A clear and forward-looking policy environment is seen as critical to sustaining investment, supporting export competitiveness, and securing the long-term future of automotive manufacturing in the country.