By Staff Reporter

South Africa’s new vehicle market continued its upward trend in March 2026, recording its strongest March performance in nearly two decades.

A total of 58,060 vehicles were sold locally during the month, marking an increase of 17.3% compared to March 2025. It’s the best March result since 2007 and reflects continued strength in domestic demand, even as broader economic conditions begin to shift.

According to industry body naamsa, this growth has been supported by improved consumer and business confidence, as well as the delayed benefits of earlier interest rate cuts. Lower inflation earlier in the year also played a role in easing pressure on buyers.

The bulk of sales came from dealerships, which accounted for nearly 89% of total volumes. Rental companies, government and corporate fleets made up the rest, pointing to a market still largely driven by retail demand.

Passenger vehicles led the charge, with 39,370 units sold, up 18.2% year-on-year. The light commercial segment, which includes bakkies and minibuses, also posted solid growth, rising 15.7% to 15,557 units.

The commercial vehicle space showed positive movement as well. Medium commercial vehicles increased by 14%, while heavy trucks and buses grew by 14.5%. These segments are often tied to broader economic activity, including infrastructure development and freight demand.

On the export side, however, the picture was less positive. Vehicle exports declined by 5.3% to 37,388 units, highlighting ongoing pressure from global economic uncertainty and geopolitical challenges.

There is a growing emphasis on improving logistics and infrastructure, areas that are critical for maintaining export competitiveness. Planned investment in rail, ports and energy supply is expected to play an important role in supporting long-term industry growth.

That said, the outlook is becoming more complex. While inflation had been easing, recent increases in global oil prices have pushed fuel costs higher. Petrol and diesel price hikes in April are expected to place additional pressure on both consumers and businesses, potentially affecting demand in the months ahead.

Although temporary fuel levy relief offers some support, it may not fully offset rising costs. Still, earlier interest rate cuts and improving business confidence are expected to provide some resilience in the near term.

For now, the numbers tell a positive story. The local vehicle market remains on solid footing, but the next few months will likely test how sustainable this growth really is.