South Africa’s new-vehicle market continued its positive run as sales increased by 12.8% in May compared with the same month last year.

The 51 071 new vehicles that found new owners last month ensured that the market delivered the best May numbers since 2013, says naamsa | The Automotive Business Council.

Passenger car sales rose by 16.3%, to 36 871 units, while light commercial vehicle sales – bakkies, panel vans and minibuses – moved up by 2.5%, to 11 251 units.

Medium commercial vehicle sales expanded by 13.6% in May, to 718 units, and heavy truck and bus sales were up 12.9%, to 2 231 units.

Another big sales winner in the domestic market is the new energy vehicle (NEV) category, with South African consumers flocking to hybrids, plug-in hybrids and battery electric vehicles (BEV) as fuel prices continue to soar.

NEV sales have jumped by 120% for the first four months of the year compared with the same period last year.

BEV sales, especially, have shown significant gains, with sales at 947 units in the first trimester of this year – this compared with the 1 088 units sold for the full 12 months of 2025.

Exports by South Africa’s vehicle manufacturers were softer yet again in May, dropping by 4.8%, to 29 392 units, with declines also recorded in February, March and April.

The sharp decrease in especially bakkie exports could be attributed to the phased startup of new Hilux production at the Toyota plant in Durban.

WesBank senior economist Thanda Sithole regards May’s sales results as encouraging, but warns that two developments are likely to shape the outlook for the remainder of the year – interest rates and fuel costs.

The South African Reserve Bank raised the repo rate by 25 basis points to 7% at its May meeting, lifting the prime lending rate to 10.5%.

"Higher monthly repayments affect affordability calculations, particularly for first-time buyers and smaller business operators,” notes Sithole.

Fuel costs present a parallel pressure point.

From June 4, petrol prices are set to increase yet again, driven by crude oil movements and the partial reversal of the temporary fuel levy relief introduced by government in April.

The combined effect of higher financing costs and rising fuel prices will undoubtedly influence how consumers engage with the market in the coming months, says Sithole.

“Fuel prices and running costs remain important considerations for buyers, particularly in the volume segments of the market,” concurs National Automobile Dealers Association (NADA) chairperson Brandon Cohen.

“Affordability is increasingly influencing purchasing decisions, with consumers paying closer attention to fuel efficiency, maintenance costs and overall value.”

NADA executive member Ryan Seele says dealers were also seeing growing interest in alternative propulsion technologies.

“We are seeing a noticeable increase in discussions around hybrid and electric vehicles. Consumers are asking more informed questions about fuel savings, operating costs and long-term ownership benefits.

“While NEVs still account for a relatively small portion of overall sales, awareness and consideration levels have increased significantly.”

Seele notes that overall demand remained strongest below the R500 000 price point, where affordability considerations are most acute.

“At the same time, the premium segment has remained surprisingly resilient, supported largely by cash buyers who are less exposed to interest rate movements and financing costs.”