South Africa’s new vehicle market delivered another month of solid growth in November 2025, supported by easing inflation, lower fuel prices and improved economic sentiment following the country’s first credit rating upgrade in almost two decades.
Domestic new vehicle sales rose to 54 896 units, up 12.5% from 48 783 units sold in November 2024. Year-to-date sales remained firmly ahead of last year, up 15.4%, reflecting stronger household confidence and improved business activity.
Passenger car sales reached 39 158 units, climbing 11% year-on-year, with the car rental sector contributing 21.2% as companies prepared for peak holiday demand. Light commercial vehicle sales increased 20.5% to 13 048 units, while medium truck sales dipped slightly. Heavy trucks and buses recorded a 1.3% rise to 1 992 units.
Positive economic shifts boosted market conditions. Fuel prices fell sharply petrol by 51 cents per litre, diesel by up to 21 cents, and LPG by 70 cents, reducing transport costs and improving affordability. Inflation remained contained, with headline CPI at 3.6% and core inflation easing to 3.1%. The labour market also showed improvement, with unemployment dropping to 31.9% in Q3.
South Africa’s fiscal credibility strengthened following the Medium-Term Budget Policy Statement and S&P Global’s sovereign credit upgrade, which improved the country’s outlook and raised confidence in future credit conditions. The South African Reserve Bank’s 25-basis-point rate cut further supported sentiment.
Vehicle exports remained resilient despite global headwinds, recording 35 848 units in November, down 3.9% from last year but still 5.6% higher on a year-to-date basis.
However, geopolitical tensions with the United States, including uncertainty over AGOA and diplomatic friction following the G20 Summit, pose potential risks for the export-dependent automotive industry.
