By Malusi Msomi

South Africa’s new vehicle market continued its positive run in May 2026, with total domestic sales reaching 51,071 units, the strongest May performance since 2013.

According to the latest figures released by naamsa, sales increased by 12.8% compared to May 2025, when 45,287 vehicles were sold. The growth comes despite increasing economic pressures, including higher fuel prices, rising inflation concerns, and a recent interest rate hike.

Passenger vehicles remained the biggest contributor to market growth. A total of 36,871 new passenger cars were sold during May, representing a 16.3% increase compared to the same month last year. Sales in the light commercial vehicle segment, which includes bakkies and minibuses, also improved slightly, rising 2.5% to 11,251 units.

The commercial vehicle sector recorded positive growth across the board. Medium commercial vehicle sales increased by 13.6% to 718 units, while heavy trucks and buses grew by 12.9% to 2,231 units.

Of the 51,071 vehicles sold during the month, around 90.1% were sold through dealerships. The vehicle rental industry accounted for 5.3% of sales, while corporate fleets and government purchases contributed 2.5% and 2.1% respectively.

While local sales showed strong growth, export volumes moved in the opposite direction. Vehicle exports declined by 4.8% year-on-year, falling from 30,859 units in May 2025 to 29,392 units this year. According to naamsa, lower export volumes were partly linked to the phased rollout of new-model production by a major exporter.

The latest sales figures suggest consumers remain active in the market despite growing economic challenges. Factors such as vehicle affordability, fuel efficiency, financing costs, practicality, and long-term ownership value continue to play an increasingly important role in purchasing decisions.

However, the outlook for the remainder of 2026 remains uncertain. The South African Reserve Bank recently increased the repo rate by 25 basis points to 7.0%, pushing the prime lending rate to 10.50%. Combined with rising fuel prices and inflationary pressures, these factors are expected to place additional strain on household budgets and vehicle affordability in the coming months.

Despite these challenges, the new vehicle market has shown resilience through the first five months of 2026, supported by improving consumer confidence, ongoing mobility needs, replacement purchasing cycles, and continued fleet renewal activity.