The South African motoring industry ended 2025 on a high note across both the new and pre-owned car markets, recording sales figures not seen since before the Covid-19 pandemic.
While December saw a small drop in sales compared to November’s exceptional figures, the industry ended the year with a stronger annual performance and improved market conditions.
This is according to AutoTrader, which recently shared a new report on the state of the South African motoring industry at the end of 2025.
“While there was a month-on-month (MoM) decrease compared to the robust performance seen in November 2025, year-on-year (YoY) sales showed notable improvement, underscoring the overall growth recorded throughout the year,” it said.
Sales of new passenger cars peaked at 35,579 units – a MoM drop of 8.9% and a YoY increase of 20.3%.
The top-seller in December – the locally-made Toyota Corolla Cross – moved 2,766 examples, adding to an industry-wide total of 48,983 units across both the passenger and commercial vehicle segments.
It was a similar story for the second-hand market, which recorded 30,742 sales.
This is a MoM reduction of 8.7% compared to November 2025, but a 16.34% YoY jump from December 2024.
The average used car sold for approximately R419,53, reflecting a 2.06% MoM increase.
The most popular used passenger car, meanwhile, was the VW Polo Vivo, which found its way into 1,262 new homes in December.
“It is an encouraging result when measured against December 2024, which saw just 26,424 used cars sold. These are strong figures, especially considering that December typically includes extended vacation periods, three public holidays, and fewer overall selling days.”
“December is typically a quieter month for vehicle sales, so seeing this level of year-on-year improvement is very encouraging,” said George Mienie, CEO of AutoTrader.
“It reflects the steady recovery in consumer confidence and the consistent momentum that built across the market during 2025. While monthly volumes eased off from November’s highs, the overall performance points to a far healthier automotive landscape than a year ago.”
Positive outlook for 2026
The Automotive Business Council attributed the industry’s strong performance in 2025 to improved market conditions with multiple interest rate cuts and lower inflation leading to higher consumer disposable income.
It anticipates that this positive trend will continue in 2026, driven in large part by the arrival of new, affordable models from India and China.
“The new vehicle market momentum is upward and 2026 new vehicle sales are poised for a further upper single digit to lower double-digit improvement of 9% to 11% over 2025 levels,” it said.
“The South African Reserve Bank projects real GDP growth for 2026 at around 1,4% to 1,6%, supported by ongoing structural reforms in electricity and transport through Operation Vulindlela.”
Globally, geopolitical shifts remain a focal point; China’s domestic vehicle sales decline is expected to drive a continued “Affordability Influx” as their manufacturers look outward for growth.”
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