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The Automotive Business Council has expressed optimism that the positive momentum of the fourth quarter of 2024 will continue into the first month of 2025.
Naamsa CEO Mikel Mabasa said they are confident that an improved economic outlook and higher business and consumer sentiment will support the new vehicle market in 2025.
Aggregate domestic new vehicle sales in January 2025, at 46,398 units, reflected an increase of 4,375 units, or a gain of 10.4%, from the 42,023 vehicles sold in January 2024.
He said export sales increased by 5,803 units, or 29,7%, to 25,348 units in January 2025 compared to the 19,545 vehicles exported in January 2024.
Overall, out of the total reported industry sales of 46,398 vehicles, an estimated 37,799 units, or 81.4%, represented dealer sales, an estimated 14.8% represented sales to the vehicle rental industry, 2.2% to industry corporate fleets, and 1,6% to government sales.
The January 2025 new passenger car market at 34,530 units had registered an increase of 5,349 cars, or a gain of 18.3%, compared to the 29,181 new cars sold in January 2024.
Car rental sales accounted for a sound 19.1%, or one out of five new passenger vehicle sales during the month.
Domestic sales of new light commercial vehicles, bakkies and mini-buses at 9,901 units during January 2025 had recorded a decrease of 993 units, or a loss of 9.1%, from the 10,894 light commercial vehicles sold during January 2024.
Mabasa said the possibility of further interest rate cuts by the central bank in 2025 would enhance vehicle affordability and foster a revival in business and consumer sentiment.
He said the South African Reserve Bank projects a notable improvement in the country’s GDP growth rate of 1.5% for 2025, with some commentators even projecting more optimistic figures of around 2%.
“Naamsa will celebrate its 90th anniversary this year [and] over the past nine decades, Naamsa has grown from strength to strength.
“Many of the automotive industry’s successes and key achievements in South Africa are a testament to the hard work, dedication, and continued trust of Naamsa’s employees, members, principals, and business partners. Naamsa remains committed to building on this foundation and its legacy,” Mabasa concluded.
