2025 will be a good year for cars in South Africa – Here’s why

Things are looking good for the South African car industry in 2025, with an uptick in consumer confidence that is expected to lead to great sales figures.

This is according to a new report from AutoTrader, which analyzed various market factors over the last year to determine the current state of the auto sector, and what we can expect over the next 12 months.

A cause for optimism

Consumer confidence is a metric used by various industries to determine how willing people are to make purchases in the current economic climate.

This is particularly true when it comes to cars, one of the single most expensive things a person can buy, which is why vehicle sales usually see a sharp decline during times of uncertainty.

Happily, 2024 established a few green shoots that will hopefully continue into this year, starting with lower interest rates.

Interest rates were cut by 0.25 basis points in November 2024, making it more affordable for people to take out a car on a finance plan.

Fuel prices are another good indicator, as the cost of petrol and diesel were on a downward trajectory for much of 2024, barring the occasional small increase.

While petrol is admittedly still very high at R21.59 per litre as of January 2025, it is lower than what we’ve experienced over the last few years, which is good news for motorists and consumers in general, as it means lower transport costs for getting goods onto store shelves.

“Falling interest rates and petrol prices are giving South African motorists and consumers plenty to smile about,” said Angelique Lynch, AutoTrader’s Marketing Director.

“These positive changes boost consumer confidence, making it easier for buyers to get behind the wheel of the car they need with greater financial peace of mind.”

South Africa’s socio-political climate has also improved within the last year, with the country celebrating over 300 consecutive days without load-shedding.

Additionally, the 2024 election of the new Government of National Unity has given many citizens cause for optimism, with 84% of South Africans stating that they think 2025 will be a better year than 2024, according to an Ipsos Predictions Survey.

The effects of this positive consumer trend are already being felt by AutoTrader, which reported a 19% uptick in traffic during the first two weeks of 2025 (Jan 1 – Jan 14) than it did during the same period in 2024.

Vehicle inquiries were also up by 12% year-on-year, indicating growing interest from people planning to buy a new car this year.

On a brand level, VW was the most-searched-for automaker over the monitored period with a 13% growth in interest.

Toyota, which ranks second overall, experienced a 14% increase, and Ford (ranked fifth) saw 15% more views than last year.

It’s a similar story for vehicle inquiries, as 24% more people expressed an interest in buying a Toyota, while Ford models received 18% more requests.

In terms of individuals models, the two standouts were the VW Polo Vivo and Ford Ranger, which received 35% and 29% more inquiries than last year, respectively.

It’s a sign that consumers have managed to weather the storm and are now eager to pick up the new car they’ve had their sights on for some time.

“South Africans have shown incredible resilience through tough times, and now they can embrace the opportunities that come with a stronger financial outlook,” said George Mienie, AutoTrader’s CEO.