According to the Automotive Business Council (Naamsa), aggregate domestic new vehicle sales in February 2025 totalled 47,978 units, reflecting an increase of 3,229 units, or a gain of 7.3%, compared to the 44,749 vehicles sold in February 2024,
“Despite February being a short month, it was not a particularly short sales month, providing the wherewithal for consumers to act on renewed confidence and easing affordability,” said Lebo Gaoaketse, head of marketing and communication at WesBank.
Three consecutive downward interest rate adjustments have provided a 0,75% relief in prime lending rates, with the most recent cut in January.
“While further expected cuts would continue to address affordability and stimulate market activity, other inflationary increases, including electricity tariffs and fuel prices, persist and have many economists questioning the expected pace of interest rate cuts, warning there may be fewer cuts throughout the year than previously envisioned,” says Gaoaketse.
Top 5
In first place is Toyota South Africa. For February 2025, the brand slid 3.4% year on year to 11,743 units, but still maintains a healthy lead as South Africa's best-selling car brand.
At the top of the Toyota sales charts, the Corolla Cross had 1435 units, followed closely by strong performances by the Starlet and Starlet Cross duo, which sold 1,279 and 1,003 units respectively.
The Urban Cruiser finished with volumes totalling 875 units, while the Vitz proved its character with 551 units. With an additional 64 units sold compared to January sales, the Prado luxury SUV boasted a 375 sales tally.
In second place is Suzuki South Africa again after besting Volkswagen in January. Suzuki totalled 6,044 units, while Volkswagen managed 5,249 in units in third place. In fourth place is Hyundai South Africa with a tally of 3,074, and Ford South Africa with 2,900 units coming in fifth.
On the possible reason smaller brands are performing better month to month, Gaoaketse commented: "A notable trend in the market is the growing presence of OEMs competing in the entry and lower segments of the market in the top 10 rankings, with brands such as Suzuki, Hyundai, Kia, Mahindra and Chery gaining traction.
"This shift suggests that affordability plays a key role in driving unit sales, enabling consumers who previously could not afford a new vehicle to enter the market.
"Additionally, a 0.25% decrease in interest rates at the end of January as well as speculation over a potential VAT increase may have encouraged some buyers to expedite their purchases."
Source: Bizcommunity
