SA vehicle sales rise in January, export market expands

Vehicle sales in South Africa increased by 10.4% in January compared to the same period last year, according to the National Association of Automotive Manufacturers (Naamsa).

Naamsa also reported a rise in vehicle exports, with an increase of nearly 6 025 units compared to January 2024.

The sector’s positive start to the year follows an interest rate cut of 25 basis points, adding to optimism ahead of the upcoming State of the Nation Address.

Naamsa CEO Mikel Mabasa says South Africa’s export market continues to grow.

“That export market is definitely growing and is encouraging because it shows that South Africa promotes high-quality vehicles that are sought after throughout the world, and I think our exports will grow further into new markets, particularly in Africa. That’s a new virgin territory, and SA has an opportunity to position itself greatly in these markets, where we have never traded before,” says Mabasa.

Volkswagen South Africa and Isuzu echoed the sentiment, with Volkswagen South Africa Chairperson and Managing Director Martina Biene highlighting the need to improve local sales.

“We need to improve sales in the second half of the past financial year. The local manufacturing can start competing with imports in terms of pricing once the economy stabilizes. The export market is expanding. This is proof that South Africa is producing high-quality vehicles.”

Nelson Mandela Bay Business Chamber CEO Denise van Huyssteen, however, raised concerns about the impact of rising vehicle imports on local manufacturing.

“We are concerned about the future of manufacturing in the country, especially due to the threat of these imported vehicles that are flooding the market. We’ve seen it in the numbers last year where local production is down in terms of locally produced vehicles, while imported vehicles increase even though the market is not growing. What needs to happen is that we need to accelerate the review of the automotive production and development programme, and that midterm review needs to be pulled forward earlier.”

The South African Reserve Bank (SARB) projects a 1.5% improvement in the country’s GDP growth rate for 2025.