South Africa’s new-vehicle market delivered its strongest March since 2007, with domestic sales reaching 58 060 units.

According to naamsa | the Automotive Business Council, this represents a 17.3% increase on the 49 500 units sold in March last year.

Year-to-date volumes now stand at 161 978 units – 12.4% ahead of the same period last year.

Vehicle financier WesBank says the buoyant March market was supported by cumulative interest rate cuts and firmer consumer and business sentiment, but warns that renewed cost pressures are starting to build.

“March is a result worth noting,” says WesBank marketing and communication head Lebogang Gaoaketse.

“The market hasn’t seen numbers like this in nearly two decades, pointing to stronger domestic demand. Successive rate cuts since late 2024 are clearly feeding through, lifting both consumer and dealer confidence.

“The environment, however, is changing. April introduces new pressure that households and the industry will need to manage carefully.”

From April 1, petrol increased by R3.06 a litre, while diesel jumped by between R7.37 and R7.51 a litre, reflecting higher global oil prices linked to the conflict in the Middle East.

The average Brent crude price increased from $69.08/bl to $93.67/bl over the pricing period, with currency weakness adding to the impact.

A temporary R3-a-litre reduction in the general fuel levy is providing short-term relief, but this is due to expire on May 5.

“The fuel and energy increases coming through in April present a clear headwind for consumers who were starting to benefit from earlier rate cuts,” says Gaoaketse.

New, higher electricity tariffs will also add to 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, warns Gaoaketse.

Passenger vehicle sales reached 39 370 units in March, up 18.2% year-on-year, with car rental accounting for 6.5% of volumes, suggesting that retail demand is carrying the bulk of growth.

Light commercial vehicle sales recorded 15 557 units, up 15.7%, while medium commercial vehicle sales increased by 14%, to 823 units.

Heavy truck and bus sales rose by 14.5%, to 2 310 units.

Dealer confidence also reached a 13-year high at 67 index points, consistent with improving trading conditions.

Exports on the Decline
Naamsa notes that new-vehicle exports remained under pressure in March, with sales down 5.3%, at 37 388 units, compared with the same month last year.

The industry body says South Africa’s auto sector continues to face structural headwinds amid geopolitical turbulence.