When the latest figures were compared to the same month last year, the increase in vehicle sales was 18.34 percent.

Passenger vehicle sales increased from 35,913 in June to 37,844 in July 2012.

This was a 5.38 percent month-to-month increase.

Light commercial vehicles increased by 2.67 percent to 13,781.

But medium commercial vehicles, buses and trucks sales decreased from 2541 in June to 2442 in July.

This was the only segment which recorded a decrease (-4.9 percent).

Passenger vehicles also recorded an 18.16 percent year-on-year increase while light commercial vehicles had the highest year-on-year increase at 20.77 percent.

Wessel Steffens, head of vehicle and commercial asset finance at Absa, said there could be some boost for consumers after the cut in interest rates in July.

"This obviously applying on debt with prime-linked rates, and not fixed rates.

"Interest rate sensitive sectors in the economy, such as the vehicle sector, will at best be supported by the rate cut, while little stimulus is expected to occur," said Steffens.