Vehicle Sales Surge in November as SA Auto Market Closes the Year with Robust Consumer and Rental Demand

Aggregate domestic new vehicle sales reached 54,896 units in November, up 6,113 units or 12.5%compared to the 48,783 units recorded a year earlier. Year to date, the market was 15.4% ahead of the corresponding period in 2024, reflecting steady gains in consumer and business activity.

Of the total 54,896 units sold, an estimated 43,702 units or 79.6% were dealer sales, 16.3% were to the rental industry, 2.4% to government and 1.7% to corporate fleets.

Passenger car sales reached 39,158 units, increasing by 3,871 units or 11% compared to November 2024. Car rental companies continued to play a major role in this category, accounting for 21.2% of sales as the sector prepared for peak holiday demand.

Light commercial vehicles, bakkies and mini buses recorded 13,048 units, up 2,221 units or 20.5% year on year. Medium commercial vehicles ended November at 698 units, down four units or 0.6% while heavy trucks and buses recorded 1,992 units, up 25 units or 1.3 % compared to the same month last year.

Positive macroeconomic conditions supported the market. Fuel prices fell sharply in November, with petrol down 51c per litre, diesel down up to 21c and LPG down 70c per kilogram. While the impact on sales is naturally lagging, lower transport and household operating costs improved sentiment and reduced total ownership costs.

South Africa’s labour market showed improvement, with unemployment declining to 31.9% in Q3 2025 from 33.2%. Although fragile, this trend signalled stabilisation in broader economic conditions.

The 2025 Medium Term Budget Policy Statement reinforced fiscal credibility by maintaining the primary surplus trajectory, supporting the new 3% inflation target and sustaining expenditure discipline. This was followed by the sovereign credit rating upgrade by S&P Global, lifting the foreign currency rating to BB and the local currency rating to BB plus.

Headline inflation rose marginally to 3.6% year on year in October, while core inflation eased to 3.1%. Food inflation slowed to 3.9 percent. The South African Reserve Bank cut the repo rate by 25 basis points to 6.75% at its first Monetary Policy Committee meeting under the formal 3% target, improving affordability heading into 2026.

Vehicle exports recorded 35,848 units in November, down 1,437 units or 3.9% from 37,285 units in November 2024. Year to date, export volumes remained 5.6% ahead of the same period last year.

Geopolitical tensions between South Africa and the US following the G20 Summit, alongside a Senate bill proposing a two-year Agoa extension that may exclude South Africa, remain potential risks given the automotive industry’s strong export exposure.