While US President Donald Trump’s yo-yoing tariff policies continue to cause global havoc, good news on the local sales front is that May saw a welcomed increase in new vehicle sales with aggregate domestic new vehicle sales totalling 45 308 units, reflecting an increase of 8 169 units – or a substantial gain of 22,0% – from the 37 139 vehicles sold in May 2024.
Figures released by naamsa | The Automotive Business Council show that May 2025 sales for the new passenger car market came in at 31 741 units, an increase of 7 322 cars – or a gain of 30,0% – compared to the 24 419 new cars sold in May 2024.
Domestic sales of new light commercial vehicles, bakkies and mini-buses at 10 938 units during May 2025 recorded an increase of 601 units – or a gain of 5,8% – from the 10 337 light commercial vehicles sold during May 2024.
In the upper segments, sales for the medium and heavy truck segments of the industry reflected a sound performance and at 660 units and 1 969 units respectively, recorded an increase of 122 units – or 22,7% – from the 538 units sold in May 2024 in the case of medium commercial vehicles and in the case of heavy trucks and buses, an increase of 124 vehicles – or 6,7% – compared to the 1,845 units sold in the corresponding month last year.
Commenting on the increased sales, Mikel Mabasa, CEO of naamsa, said May 2025 was a “consequential month for South Africa’s automotive sector, marked by a long-anticipated shift in the monetary policy cycle”.
“The South African Reserve Bank’s decision to cut the repo rate by 25 basis points signalled a welcome policy pivot in support of industrial growth, affordability and macro-economic stability. The move, which followed a cautious policy hold in March, is widely welcomed by the industry – particularly by naamsa – as we had previously advocated for an easing in monetary policy to help cushion the sector from escalating global and domestic risks,” he says, adding that the automotive sector finds itself once again at the coalface of global economic shifts.
“The SARB’s latest decision to lower interest rates is both timely and commendable. It directly supports consumer affordability and boosts production competitiveness at a time when global uncertainty is weighing heavily on our export markets. While the new tariff measures remain a concern, our industry has proven its resilience time and time again.”
Staying on the SARB’s rate cut, Mabasa said it comes at a time of continued global uncertainty. “Geopolitical tensions and lingering tariff risk underscore the need for local policy agility. Access to affordable capital will remain a critical enabler as the industry adapts to shifting global supply chains and trade regimes. The May policy decision, therefore, represents a vital step toward strengthening the sector’s resilience and positioning South Africa as a competitive manufacturing destination.”
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