South Africa’s automotive market has reached a new milestone, recording its strongest sales figures in a decade. October’s performance showed nearly 56,000 new vehicles sold, reflecting a renewed consumer confidence and a shift in value-driven car buying.
Lebo Gaoaketse head of marketing and communication at WesBank. (Image supplied)
“The combination of easing inflation, a firmer rand and less pressure at the petrol pump has made vehicle ownership feel attainable again,” says Lebo Gaoaketse, head of marketing and communication at WesBank.
“The industry’s performance this year shows how improving sentiment and a more confident economy are translating directly into mobility decisions.”
Smarter spending defines today’s car buyer
This is the third consecutive month that new vehicle sales have topped 50,000 units, driven largely by the passenger car segment, which contributed 39,610 units.
The light commercial segment also posted strong gains, up 23,9% to 13,361 units.
He adds that mobility has become a non-negotiable expense in many households, particularly as commuting patterns stabilise and businesses normalise operations.
“Vehicle ownership has become an essential part of economic participation,” he says.
“What’s different today is how informed buyers are. People are weighing affordability, fuel efficiency and resale value before they sign. That discipline is driving healthier, more sustainable growth.”
Compared with ten years ago, when similar market volumes were achieved under lower interest rates, today’s buyers are holding onto their vehicles longer and structuring their finance more cautiously.
“A decade ago, ownership was aspirational. Today it’s pragmatic,” says Gaoaketse.
“Buyers are looking for predictability and value rather than prestige. That’s why value-focused and efficient models are leading demand, even in the premium space.”
“A decade ago, ownership was aspirational. Today it’s pragmatic,” says Gaoaketse. “Buyers are looking for predictability and value rather than prestige. That’s why value-focused and efficient models are leading demand, even in the premium space.”
Competition drives affordability and choice
Competition among manufacturers and financiers has intensified, offering consumers greater choice and prompting more careful decision-making.
“The market is highly competitive, which benefits buyers but also demands greater financial awareness,” he says. “People are comparing offers, considering total cost of ownership and looking for flexibility in their finance structures. That level of awareness supports long-term stability for both the market and the consumer.”
WesBank reported that fleet and rental activity also contributed to October’s performance, accounting for just over 1 in 5 passenger car sales.
The light commercial vehicle segment has shown steady recovery too, signalling renewed confidence among small businesses and fleet operators.
“The light commercial market is a useful barometer of business sentiment,” says Gaoaketse. “When entrepreneurs and fleet owners start reinvesting, it shows belief in future growth.”
Looking ahead: grounded growth, steady demand
Demand for credit remains strong, with WesBank recording continued growth in applications compared with the same period last year.
“Improving macroeconomic conditions are supporting lending appetite and giving more consumers the confidence to take on medium-term debt,” Gaoaketse explains.
“Many are also hopeful that further interest rate cuts early next year will improve affordability even more.”
WesBank recently announced a partnership with Geely Auto, who have re-entered the South African market, further expanding consumer choice.
“More brands and more competition mean more accessibility,” says Gaoaketse.
“It’s a sign of an industry that is open, confident and focused on giving South Africans greater value.”
“This demand is grounded in real need,” Gaoaketse concludes.
“Mobility is central to how South Africans live and work, and the current level of activity shows an industry that has found its rhythm again, not one overheating.”
