By Malusi Msomi

South Africa’s new vehicle market continued its positive run in July 2026, with domestic sales increasing by almost 12% compared to the same month last year. According to naamsa, 57,708 new vehicles were sold during the month, up 11.9% from the 51,558 units recorded in July 2025.

The industry says lower fuel prices during July helped support consumer confidence by easing running costs, despite the full reinstatement of the General Fuel Levy and ongoing economic pressure.

Passenger vehicles remained the biggest contributor to overall sales, with 40,912 units sold. It was the strongest monthly passenger car performance since September 2014 and represented a 12.5% year-on-year increase. Light commercial vehicles, including bakkies and minibuses, also posted healthy growth, climbing 10.6% to 13,710 units.

Commercial vehicles recorded gains as well. Medium commercial vehicle sales rose 19.4% to 843 units, marking the segment’s best performance since March 2023, while heavy trucks and buses increased by 7% to 2,243 units.

While the local market showed encouraging growth, exports continued to face challenges. Vehicle exports fell by 11.6% year-on-year, dropping from 37,114 units in July 2025 to 32,801 units this year.

Electrified vehicles continue gaining ground

One of the biggest trends remains the growing demand for new energy vehicles (NEVs). During June 2026, South Africans bought 3,045 electrified vehicles, more than double the 1,491 units sold during the same period last year.

Electrified vehicles now account for around 6% of new light vehicle sales, meaning roughly one in every 17 new vehicles sold in South Africa is electrified.

Traditional hybrid electric vehicles (HEVs) continued to lead the segment with 1,488 sales, followed by plug-in hybrids (PHEVs) with 990 units and battery electric vehicles (BEVs) with 419 units.

Year-to-date, South Africa has recorded 13,193 NEV sales, made up of 6,667 hybrids, 4,623 plug-in hybrids and 1,903 battery electric vehicles.

According to naamsa, the figures suggest that South African buyers are embracing a range of electrified technologies rather than moving directly to fully electric vehicles. Factors such as affordability, charging infrastructure and driving habits continue to influence purchasing decisions.

Market remains resilient

Although inflation remains elevated and interest rates are unchanged, naamsa believes the local vehicle market has shown resilience. Buyers continue to favour value-focused brands, fuel-efficient models and flexible finance options as affordability remains a key consideration.

The industry body expects market conditions to remain challenging, but says steady consumer demand and continued growth in electrified vehicle sales provide a positive outlook for the remainder of 2026.