South Africa's new vehicle market recorded its strongest June sales performance in 19 years, with more than 54,000 vehicles sold as resilient domestic demand continued to offset a slowdown in exports.

According to Naamsa, 54,482 new vehicles were sold during June 2026, up 15.3% from the same month last year and marking the best June performance since 2007.

Passenger vehicle sales climbed 18.1% year-on-year to 38,393 units, while light commercial vehicle sales, including bakkies and minibuses, increased 8.4% to 13,171 units. Medium commercial vehicle sales edged up 0.6%, with heavy truck and bus sales rising 15.9%.

The industry has now sold 315,303 new vehicles during the first six months of the year, putting the market on track to exceed 600,000 new vehicle sales in 2026.

Despite the strong domestic performance, export volumes declined 6.9% to 33,879 units compared with June 2025 as international demand remained under pressure.

Ryan Seele, executive at the National Automobile Dealers' Association (Nada), said the market's performance reflected the resilience of South African consumers despite ongoing economic challenges.

"Consumers are still navigating a challenging economic environment, with the rising cost of living, fuel prices and broader financial pressures all influencing purchasing decisions. Yet the market continues to perform exceptionally well, suggesting buyers are recognising value where it exists and remain prepared to commit when the right opportunity presents itself."

Seele said consumers were increasingly favouring established vehicle brands during uncertain economic conditions, placing greater emphasis on reliability, dealer support and long-term ownership value.

He pointed to the continued growth of brands such as Toyota, Suzuki and Volkswagen, all of which have recorded three consecutive months of month-on-month passenger vehicle sales growth.

Naamsa said domestic demand continued to be supported by replacement purchases, fleet renewal programmes, government procurement and the essential need for personal and commercial mobility, despite inflationary pressures and higher fuel prices weighing on household budgets.

Dealer sales accounted for 86.9% of all new vehicle sales during June, while the vehicle rental industry represented 7.8% of sales. Government purchases accounted for 2.8% and corporate fleet sales 2.5%.

Looking ahead, both naamsa and Nada believe market conditions could gradually improve.

Naamsa said easing geopolitical tensions, lower global oil prices and improving business sentiment could help moderate inflationary pressures and support consumer confidence in the months ahead.

Seele added that lower fuel prices towards the end of June, together with quarter-end incentives from manufacturers, contributed to stronger buying activity during the latter part of the month.

"Together with attractive quarter-end offers from a number of manufacturers, this created a more positive buying environment and encouraged purchasing activity."

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