South Africa’s new-vehicle market continued its strong recovery in August, recording its 23rd consecutive month of year-on-year growth.
But while South Africans kept buying cars, the country’s vehicle exports moved sharply in the opposite direction, highlighting growing pressure on the automotive manufacturing sector.
New-vehicle sales increased 11.4% year on year to 57 898 units in August.
Passenger-car sales rose 11.6%, while light commercial vehicle sales increased 11%.
Exports, however, fell 11.9% year on year to 35 091 vehicles.
Vehicle exports fall after record year
The August export decline comes after South Africa’s vehicle exports reached a record 414 271 units in 2025, up from 391 128 the previous year.
Export value reached a record R291 billion, with more than 70% of light vehicle production shipped abroad.
One weaker month does not undo that performance, but the August decline will be worth watching if the trend continues.
The contrasting figures point to an increasingly uneven automotive market, with domestic demand improving while manufacturers remain exposed to weaker export conditions and changes in the global vehicle industry.
Stronger sales need to support local production
Naamsa said the strength of the domestic market needed to translate into greater local production, localisation, investment and employment for the recovery to deliver broader industrial benefits.
The automotive body has linked some of the domestic market’s strength to easing inflation and the South African Reserve Bank‘s decision to keep the repo rate unchanged.
Inflation slowed to 4.3% in July from 5.0% in June, while the repo rate remained at 7%, improving affordability for buyers.
Rental companies were also an important source of demand during August, accounting for 17.2% of passenger-car sales.
New-energy vehicle sales continue to grow
South Africa’s new-energy vehicle market continued its growth during 2026.
A total of 16 289 hybrid, plug-in hybrid and battery-electric vehicles were sold during the first seven months of the year, representing an 88% increase compared with the same period last year.
Conventional hybrids accounted for 8 078 sales, followed by 5 851 plug-in hybrids and 2 360 battery-electric vehicles.
The figures point to an accelerating transition towards electrified vehicles in South Africa, although pure battery-electric vehicles continue to represent a relatively small part of the overall market.
Pressure on South Africa’s automotive sector
The difference between rising domestic sales and falling exports comes as South Africa seeks to protect its position as a vehicle-manufacturing base.
The sector faces growing competition from global producers, the rise of Chinese vehicle brands and the wider transition towards new-energy vehicles.
For now, South Africa’s domestic new-vehicle market continues to move in the right direction.
The bigger question is whether that momentum will translate into the local production, investment and employment needed to strengthen the country’s automotive manufacturing sector while exports face a more difficult road.
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