South Africa's automotive sector has recorded its strongest February performance in over a decade, with domestic new vehicle sales reaching 53 455 units, a milestone that signals deepening economic stabilisation rather than a fleeting rebound.
The Automotive Business Council | naamsa attributes this sustained momentum to a convergence of structural improvements: easing inflation, strengthening credit markets, improved energy supply, and incremental but meaningful gains in logistics reform. While the domestic outlook continues to brighten, headwinds in export markets present a contrasting picture, with global protectionism and tightening decarbonisation standards weighing heavily on South Africa's vehicle export competitiveness.
Strengthening credit extension, moderating inflation, fiscal consolidation credibility, and incremental logistics reform have collectively underpinned domestic demand conditions.
However, exports have weakened in the month of February 2026 with vehicle export sales at 24 221 units, reflecting a year-on-year decrease of 9 463 units, or 28,1%, compared to the 33 684 vehicles exported in the corresponding month last year.
The industry's export performance remains subject to heightened protectionism across several of South Africa's key export markets, while increasingly stringent decarbonisation requirements in destination markets continue to weigh on the competitiveness of South African vehicle exports.
Aggregate domestic new vehicle sales in February 2026, at 53 455 units, the best February monthly performance since 2013, reflected an increase of 5 461 units, or 11,4%, compared to the 47 994 vehicles sold in February 2025. Export sales decreased to 24 221 units, representing a loss of 28,1% compared to the 33 684 vehicles exported in February 2025.
Naamsa notes that the February 2026 performance continues to reflect a broad-based improvement in underlying demand fundamentals. Private sector credit extension accelerated to 8.7% year-on-year in December, driven predominantly by robust corporate borrowing, while household credit growth improved gradually as cumulative interest rate reductions since late 2024 filtered into asset finance markets. Vehicle asset finance activity has strengthened as cumulative interest rate cuts since late 2024 improve affordability and support buyer sentiment.
Overall, out of the total reported industry sales of 53 455 vehicles, an estimated 45 457 units, or 85,0%, represented dealer sales, an estimated 9,6% represented sales to the vehicle rental industry, 3% to government sales, and 2,4% to industry corporate fleets, a composition indicative of both retail resilience and stabilising fleet demand.
The February 2026 new passenger car market at 37 576 units recorded an increase of 3 826 units, or 11,3%, compared to the 33 750 new cars sold in February 2025. Car rental sales accounted for 11,5% of new passenger vehicles sold during the month.
Domestic sales of new light commercial vehicles (bakkies and mini-buses) at 13 218 units during February 2026 recorded an 11,9% increase compared to the 11 816 units sold in February 2025. Naamsa observes that light commercial vehicle demand continues to align with conditions in the goods-producing sectors, which are gradually stabilising as energy supply improves and logistics reforms gain traction.
Sales in the medium and heavy commercial vehicle segments reflected a positive performance. Medium commercial vehicle sales at 720 units were exactly the same as in February 2024, while heavy trucks and buses at 1 941 units reflected a 13,6% increase compared to the 1 708 units sold in February 2025. Investment decisions in these segments remain closely linked to infrastructure spending trends, freight volumes, electricity costs, and overall business confidence.
