South Africa’s new vehicle sales in April 2026 were the highest since April 2013. There was a 13.0% year-on-year increase after a 17.3% year-on-year gain in March and a 11,4% year-on-year rise in February. The March 2026 sales were the best March since 2007. That was when Thabo Mbeki was President and the South African economy grew by 5.4%.
The Automotive Business Council attributed the April 2026 performance to a market still benefiting from earlier monetary policy support. This positive momentum continued despite the external shock of the Middle East war.
Broad-based increase
The April vehicle sales showed a broad-based gain.
The new passenger car market grew by 14.3% year-on-year. Car rental sales accounted for 5.7% of new passenger vehicles sold during the month. This reflects continued growth in domestic tourism as domestic airport arrivals increased by 9.9% year-on-year in March.
Additionally, sales of new light commercial vehicles rose by 9.7% year-on-year. Similar gains were seen in the medium and heavy commercial vehicle segments.
This reflected positive sentiment amongst businesses. Medium commercial vehicle sales grew by 10.5% year-on-year, while heavy trucks and buses increased by 9.9% year-on-year.
Vehicle finance support
South Africa’s vehicle finance market continued its expansion in the fourth quarter 2025 according to TransUnion. This was the fifth consecutive quarter of growth. The increase was driven by younger South Africans. Gen Z and Millennials accounted for two-thirds of all originations.
TransUnion defines the age cohorts as follows: Gen Z (Born 1995 – 2010); Millennials (Born 1980-1994); Gen X (Born 1965-1979); and Baby Boomers (Born 1946-1964).
TransUnion said the consumer credit market was shifting from a tentative recovery to broader stabilization. This was driven by steady inflation and interest rates. In addition, there was an improvement in consumers’ repayment behaviour.
During the quarter there was again notable growth in vehicle asset finance and the personal loans market. The gain was supported by strong consumer interest in affordable new car models.
The market dynamics were further shaped by a significant shift in the used-to-new vehicle financing ratio. This ratio declined to 0.96 used vehicles for every new one financed. A year ago the ratio was 1.56. om 1.56 in Q4 2024. Significantly, this shift towards more new vehicle financing reflects the availability of budget-friendly new models and favourable inflation trends.
This is also reflected in the first quarter 2026 import data. Imports grew by 16.45% year-on-year in the first quarter 2026.
