Affordability remains a major consideration for consumers in the market for new vehicles. According to the financial instructions, consumers prioritise long-term value and manageable ownership costs when looking for a new vehicle.
They also pointed to encouraging signs in the market, particularly on the back of the strong February performance in the new car sales market.
Data from the Automotive Business Council, Naamsa, showed that the new vehicle market delivered its strongest February performance in more than a decade. However, industry leaders warned that rising fuel costs, levies and weakening exports could threaten the sector’s recovery.
Domestic new vehicle sales reached 53 455 units in February 2026, the best February result since 2013. This represents an increase of 5,461 vehicles, or 11.4%, compared with the 47 994 units sold in February 2025.
However, the upbeat local performance was offset by a sharp decline in exports. Vehicle export volumes dropped to 24 221 units, down 28.1% year-on-year from the 33 684 units exported in February last year.
Naamsa attributed the slump to rising protectionism in key global markets and stricter decarbonisation regulations that are weighing on South Africa’s manufacturing competitiveness.
Locally, the recovery was broad-based across segments. Passenger car sales rose to 37 576 units, up 11.3%, while light commercial vehicles, including bakkies and minibuses, increased 11.9% to 13 218 units.
Sales of medium commercial vehicles remained flat at 720 units, while heavy trucks and buses grew 13.6% to 1 941 units, signalling improving activity in freight and infrastructure sectors. Of the total vehicles sold, 85% were dealer-driven retail transactions, with 9.6% going to the rental industry, 3% to government, and 2.4% to corporate fleets.
Global headwinds threaten sector stability. According to WesBank, February’s results suggest that the domestic vehicle market is beginning to stabilise. “Demand remains resilient, but it is increasingly value-driven,” said Lebogang Gaoaketse, head of marketing and communication at WesBank.
“Our data shows that consumers are approaching purchases with greater intent, prioritising affordability, certainty and long-term cost management over short-term decisions.” He added that buyers remain highly sensitive to monthly instalments, deposit requirements and loan terms.
WesBank’s internal data shows that 75 642 people applied for finance on new vehicles, while 126 832 applied for finance for used cars, highlighting the continued importance of the pre-owned market for budget-conscious buyers.
Meanwhile, Absa Vehicle and Asset Finance reported that finance applications overall increased 18% year-on-year. Henry Botha, head of strategy at the division, said the strong performance in passenger vehicle sales is a positive sign for consumer demand.
“We continue to see passenger vehicles leading year-on-year growth. That is encouraging, as consumer demand has recovered,” said Botha.
He added that stronger sales in commercial vehicle segments would be an important indicator of broader economic expansion.
“We would like to see more recovery in light commercial vehicles and medium and heavy trucks because that signals that businesses are releasing cash and investing in vehicles to expand operations.”
Botha also warned that global oil price movements and currency volatility could pose risks to the industry’s recovery. “The recent changes in oil prices and the rand-dollar exchange rate pose some risk to future growth and positive sentiment.”
The National Automobile Dealers’ Association cautioned that rising fuel prices and levies are already adding pressure to vehicle ownership costs.
“Continued volatility in global oil markets, in response to rapidly escalating developments in the Middle East, introduces uncertainty for both consumers and businesses,” it said.
Looking ahead, WesBank believes the outlook for the new vehicle market remains cautiously optimistic. “Easing inflation and expectations of further interest-rate relief are supportive, but rising fuel costs and policy uncertainty will need to be carefully managed,” Gaoaketse said.
“Sustained growth will depend on maintaining affordability, providing policy clarity and ensuring consumers have access to reliable and cost-effective mobility solutions.”
Meanwhile, market leader Toyota South Africa Motors (TSAM) once again topped the sales charts. Leon Theron, senior vice-president of sales and marketing at TSAM, said the performance reflected the strong relationship between the brand and local motorists.
“Toyota’s performance is a testament to the trust South Africans place in our vehicles across every segment, from passenger cars to commercial workhorses,” he said.
