South Africa’s auto sales jump 7.5% as demand holds despite 6.75% repo rate

South Africa’s auto industry started 2026 on a strong note, defying high borrowing costs and global trade pressures.

A total of 50,073 new vehicles were sold in January, up 7.5% from a year earlier, according to Naamsa. That is 3,479 more units than January 2025.

Strong dealer channel and consumer demand

Most sales, 85.4%, went through dealer channels, showing that retail demand remains firm. The rental market made up 10.9%, while industry fleets accounted for 2.1% and government purchases 1.6%.

Passenger vehicles rose 7.1% to 34,710 units. The light commercial vehicles (LCVs) and bakkie segment grew 11.0% to 10,996 units after a weak 2025.

Medium and heavy truck sales declined 5.9% and 4.3%, respectively.

Toyota Leads as Exports Face Pressure

Toyota dominated January sales with 11,786 units. Suzuki Auto followed at 6,410, ahead of Volkswagen at 4,774 and Hyundai at 3,048.

Vehicle exports edged up 0.6% to 24,568 units. However, Naamsa warned that rising trade barriers in advanced economies are testing South Africa’s competitiveness.

Inflation Target and Repo Rate in Focus

The South African Reserve Bank kept the repo rate (6.75%) unchanged in January. The Monetary Policy Committee (MPC) signalled that rate cuts may be delayed, not cancelled.

The SARB aims for a permanent 3% inflation target by 2026. Naamsa said moderating inflation and stable macroeconomic conditions are supporting underlying demand.

The January result suggests buyers are moving ahead with purchases, even before interest rate relief arrives.

Read also: South Africa’s used-car market surged to nearly $900 million in January