SA new vehicle market on track for strong growth despite slower first half
Economic improvements and more affordable imported vehicles are expected to boost new vehicle sales in the second half of 2026.
Following the release of June’s monthly new vehicle sales figures, the local automotive industry recorded its 20th consecutive month without a decline since 2024, reports The Citizen.
June proved to be a strong month, with a total of 47 979 vehicles sold. Throughout the first half of the year, only April saw sales dip below the 40 000-unit mark.
However, when compared to 2025, the first half of 2026 still lagged behind. Total sales for the first six months of this year reached 206 987 units. Despite recording strong performances of more than 50 000 units in 5 of the 6 months, this total fell short of last year’s tally of 232 474.
Optimistic projections for the year
Despite the slower start, the outlook for the remainder of the year remains highly positive.
“The South African Reserve Bank projects real GDP growth for 2026 at around 1.4% to 1.6%, supported by ongoing structural reforms in electricity and transport through Operation Vulindlela,” stated the National Association of Automobile Manufacturers of South Africa in its 2026 projection report.
According to the report, the new vehicle market is maintaining upward momentum. Full-year sales for 2026 are poised for an upper single-digit to lower double-digit improvement, with growth projected at 9% to 11% over 2025 levels.
Global shifts and export focus
On the global stage, geopolitical shifts continue to influence the local market. A decline in domestic vehicle sales in China is expected to drive a continued ‘affordability influx’ into South Africa as their manufacturers increasingly look to export markets for growth.
At the same time, local manufacturers are keeping a close eye on traditional trade partners. While the US economy currently presents some uncertainties, the industry remains heavily focused on securing its competitive position in the European Union, which remains South Africa’s most crucial regional export destination by far.
Breaking news at your fingertips… Follow Caxton Network News on Facebook and join our WhatsApp channel.
Nuus wat saakmaak. Volg Caxton Netwerk-nuus op Facebook en sluit aan by ons WhatsApp-kanaal.
