SA’s new vehicle sales hit 20-year high, but fuel price spike could dampen demand

South Africa’s new vehicle market delivered its strongest month in nearly two decades in March, with sales surpassing 58 000 units. This represents a 17% surge on the 49 500 units sold in March 2025.

Naamsa, the country’s Automotive Business Council,  says the jump in sales was supported by cumulative interest rate cuts and firmer consumer and business sentiment, even as cost pressures begin to build.

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Year-to-date volumes now stand close to 162 000 units, more than 12% ahead of the same period last year. Dealer channels accounted for 88.7% of total sales, a sign that retail demand continues to underpin the market.

But head of marketing and communication at WesBank, Lebogang Gaoaketse says the March outcome precedes a marked shift in the cost environment.

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“April introduces new pressure that households and the industry will need to manage carefully,” he warns.

This includes the spike in fuel prices brought on by supply constraints from the war in the Middle East. The April fuel adjustments on Wednesday saw diesel hiked by more than R7 a litre to a new record high of R26.11 a litre. Both grades of petrol are now R3.06 more expensive per litre.

Read: Robert Gwerengwe takes reins at Wesbank

Higher electricity tariffs are also expected to add pressure on both households and businesses. The combined effect is likely to feed through into transport costs, food prices and overall living expenses, placing further strain on disposable income.

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The National Automobile Dealers’ Association (Nada) says the record sales are a pleasant surprise.

“We expected to see some hesitation from buyers, with a degree of caution creeping back into the market as people waited to see where fuel prices would settle,” says Ryan Seele, a Nada national executive member.

The passenger car market, at 39 370 units, was 18.2% higher than in March, while light commercial vehicle sales of 15 557 units were 15.7% up on the corresponding month last year.

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