South Africa’s new vehicle market recorded 61 890 sales in October, 10,4% more than the 56 051 sold in October 2025, according to naamsa | the Automotive Business Council. Despite having one fewer working day than in October 2025, the market’s daily selling rate was approximately 15% higher year-on-year.
“October last year was already one of the strongest months the market had seen in a decade. Recording double-digit growth against an already high base, despite having one fewer working day, points to sustained demand and continued resilience in new vehicle market,” says Thanda Sithole, Senior Economist: FNB and WesBank. “This is particularly interesting given that consumers are continuing to participate in the new vehicle market despite mounting pressure on household budgets and higher living and motoring costs.”
Passenger cars were the main contributor to growth, increasing 13,6% to 45 084 units. Rental companies accounted for a larger share of passenger car sales than in recent months, contributing 21,4% compared with 18,4% in September. Light commercial vehicle sales increased 2,2% to 13 689 units, while medium commercial vehicles recorded a marginal decline. Heavy trucks and buses grew 8,1%.
WesBank’s own finance data points to continued interest in new vehicles. Applications for new vehicle finance increased by more than a fifth year-on-year in October, against an already strong comparative period. Applications for used vehicle finance remained broadly flat, with new vehicles accounting for an increasing share of total vehicle finance applications.
“This tells us that consumers remain interested in buying new vehicles, but affordability is playing an increasingly important role in their decisions,” says Sithole. “The average value of a new vehicle finance deal we facilitate has remained broadly unchanged year-on-year, despite increases in vehicle prices. This suggests that buyers are adjusting their choices, favouring more affordable models and specifications to keep their monthly financial commitments manageable.”
These purchasing decisions are unfolding against a challenging household cost environment. Two interest rate increases this year have taken the prime lending rate to 10,75%, while Statistics South Africa’s September inflation data shows fuel prices 27,9% higher than a year earlier. Diesel prices increased by 46% over the same period.
“Consumers are having to think beyond the purchase price and monthly instalment when making vehicle financing decisions,” says Sithole. “We are seeing changes in how customers structure their finance, with repayment terms lengthening across both new and used vehicles and a growing preference for fixed interest rates. Fewer finance agreements are also incorporating balloon payments. These trends point to consumers paying closer attention to repayment certainty and the longer-term commitments associated with vehicle ownership.”
Some relief is on the way. The temporary fuel levy reduction announced in the Medium-Term Budget Policy Statement will take effect on 4 November. The levy will be reduced by R1,50 per litre for petrol and R3 per litre for diesel until 1 December, before moving to smaller reductions of R1 per litre for petrol and R1,50 per litre for diesel until 5 January 2027.
“The fuel levy relief is a welcome intervention, particularly as households and businesses prepare for the festive season and the associated increase in travel,” says Sithole. “Diesel users, including businesses operating vehicle fleets, will benefit from the larger initial reduction. However, this remains temporary relief, and fuel costs are still an important consideration in the overall cost of running a vehicle. Consumers should assess the full cost of ownership, including fuel, insurance, maintenance and finance repayments, before committing to a purchase.”
The shift towards electrified mobility also continued. Cumulative sales of new energy vehicles (NEVs), which include hybrids, plug-in hybrids and battery electric vehicles, reached 22 389 units in the first nine months of the year, already 34% above the full-year 2025 total. Plug-in hybrids and battery electric vehicles now account for just over half of these sales.
“Electrification is becoming an increasingly relevant consideration for South African motorists, particularly as fuel costs remain elevated and the range of available models expands,” says Sithole. “With battery electric vehicles now available below R360 000, the market is beginning to offer more accessible entry points into alternative vehicle technologies. The decision, however, still needs to take into account individual driving patterns, charging access and the overall cost of ownership.”
October’s performance takes year-to-date new vehicle sales to 554 081 units, 12,3% ahead of the same period in 2025, leaving the market on course to finish the year well ahead of last year’s performance.
“While the market has demonstrated considerable resilience, the coming months will be important in determining whether this momentum can be sustained. December traditionally brings softer sales as some buyers defer purchasing decisions into the new year, while the Reserve Bank’s interest rate announcement on 19 November will be another important consideration for consumers and the broader market,” says Sithole.
“Ultimately, continued market growth needs to be considered alongside the financial realities facing consumers. Our role is to help customers navigate their financing options, understand the commitments involved and make informed decisions that support their mobility needs and financial circumstances.”
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