South Africa’s new vehicle market has started 2026 on a strong footing, recording its best January to April performance in 13 years as improving consumer confidence, competitive pricing and lower borrowing costs supported sales growth.
According to figures reported by naamsa, 209 838 new vehicles were sold during the first four months of 2026. This represents a 12.5% increase compared with the 186 599 units sold during the same period in 2025 and marks the strongest opening to a year since 2013.
Passenger Vehicle Segment Leads Growth
Passenger vehicle sales slightly outperformed the overall market, reaching 148 723 units between January and April. The segment grew by 12.8% year on year and achieved its strongest result for the period since 2013.
April continued the positive momentum, although sales were affected by public holidays and eased compared with March. Total new vehicle sales reached 47 892 units during the month, representing a 12.8% increase compared with April 2025 but a 17.5% decline from March.
Passenger car sales increased by 13.7% year on year to 34 241 units, while light commercial vehicle sales grew 10.4% to 11 035 units. Combined, these categories delivered the strongest April light vehicle performance since 2013.
Retail Dealers Drive Market Activity
The retail dealer network remained the main driver of new vehicle sales. Dealers accounted for 87% of all new vehicle transactions during the first four months of 2026, while contributing 86% of light vehicle sales.
The rental industry’s contribution to passenger vehicle sales declined to 9.6%, compared with 13.4% during the same period in 2025, indicating stronger underlying retail demand.
Lightstone Auto Data analyst Andrew Hibbert said the strong opening performance had improved expectations for the remainder of the year.
The company expects total new vehicle sales to reach around 629 200 units in 2026, including approximately 597 000 light vehicles. Overall growth is forecast at around 5.3%, an improvement from the previous projection of 3.4%.
Although this would represent slower growth than the almost 16% increase recorded in 2025, it would still build on the strongest annual sales performance since 2015, when South Africa last exceeded 600 000 new vehicle sales.
Affordability Supports Recovery
The market has benefited from lower interest rates and limited new vehicle price increases. However, Lightstone warned that rising fuel prices caused by instability in the Middle East could increase pressure on household budgets and inflation, potentially limiting further interest rate reductions.
Despite these risks, consumers continue to prioritise value and practicality when selecting vehicles.
SUVs and Crossovers Remain Dominant
Crossovers and SUVs continued to dominate South African vehicle buying trends. The segment recorded 87 615 sales between January and April, accounting for 44% of all light vehicle sales.
Models such as the Chery Tiggo 4 Pro, Haval Jolion and Toyota Corolla Cross contributed to the popularity of the segment, with dealers responsible for 90% of crossover and SUV sales.
Hatchbacks remained the second-largest body style category, achieving 47 761 sales during the same period. Popular models including the Suzuki Swift, Toyota Starlet and Volkswagen Polo Vivo helped the segment maintain a 24% share of the light vehicle market.
Passenger minibuses and MPVs recorded the strongest growth rate, increasing 38% year on year to 7 590 units. Vehicles such as the Hyundai Staria, Suzuki Ertiga and Toyota Rumion contributed to this growth.
The above one-ton single cab segment also performed well, increasing 20% to 17 599 units.
Electrified Vehicle Sales Continue Rising
Hybrid and electric vehicle sales continued their upward trend, supported by increased consumer interest and the inclusion of BYD sales data in naamsa reporting.
Sales of traditional hybrids, plug-in hybrids and battery electric vehicles increased 62% year on year to 7 637 units during the first four months of 2026.
These vehicles represented 5.1% of the passenger vehicle market. Traditional hybrids accounted for 54% of electrified vehicle sales, plug-in hybrids contributed 33%, and battery electric vehicles represented 13%.
Vehicle Prices Remain Stable
New vehicle price inflation remained subdued, with March 2026 prices only 0.4% higher than the previous year. This marked the 27th consecutive month where new vehicle price growth remained below headline consumer inflation.
Used vehicle values, however, continued to soften. Two-year-old passenger vehicles retained 1.3% less of their original value compared with a year earlier, while four-year-old vehicles declined by 2.1% and six-year-old vehicles by 2.2%.
Used Vehicle Market Holds Steady
South Africa’s formal used light vehicle market reached approximately 284 000 units during the first four months of 2026, remaining broadly unchanged from the 283 000 units recorded in the same period in 2025.
This means approximately 1.7 used vehicles were sold through dealerships for every new vehicle sold, representing the lowest ratio for the period in five years.
Toyota remained the strongest used vehicle brand with a 25% market share, followed by Volkswagen at 17%. The top five used vehicle brands remained unchanged from 2025, with Toyota, Volkswagen, Suzuki, Nissan and other leading manufacturers collectively accounting for 69% of the market.
South Africa’s automotive market has therefore entered 2026 with renewed momentum, although affordability, fuel prices and changing consumer preferences will continue shaping the direction of the industry throughout the year.
Staff Writer
Reporting from the front lines of the automotive industry, delivering expert analysis and the technical updates that drive the South African motor sector forward.
