South Africa’s new-vehicle market recorded the strongest June since 2007, keeping the industry on track to surpass the 600 000-unit mark this year, says the National Automobile Dealer Association (NADA).

Total new-vehicle sales in the domestic market reached 596 818 units last year, compared with 2024’s 515 976 units.

According to data released by naamsa | The Automotive Business Council, 54 482 new vehicles were sold in the local market during June – up 15.3% compared with the same month last year.

Passenger vehicle sales jumped by 18.1% to 38 393 units.

The commercial vehicle market also continued its positive trajectory last month, with all segments recording year-on-year growth.

Light commercial vehicle sales increased by 8.4% to 13 171 units, medium commercial vehicle sales inched up by 0.6%, while heavy trucks and buses posted strong growth of 15.9%.

Year-to-date, the total new-vehicle market has now reached 315 303 units – 12.9% ahead of the corresponding period last year.

The bad news, however, is that export volumes continued to soften, declining by 6.9% in June, to 33 879 units.

Exports for the first six months of the year were down 7.8%, at 181 731 units.

NADA executive Ryan Seele says the domestic market continues to demonstrate “remarkable resilience” despite ongoing economic pressures.

“Consumers are still navigating a challenging economic environment, with the rising cost of living, fuel prices and broader financial pressures all influencing purchasing decisions.

“Yet the market continues to perform exceptionally well, suggesting buyers are recognising value where it exists and that they remain prepared to commit when the right opportunity presents itself.”

Seele believes one of the characteristics of the current market is a shift back towards trusted, established brands.

“History shows that during periods of economic uncertainty, consumers become more cautious about where they spend their money.

“We saw this during previous economic downturns, and we are seeing similar behaviour today. Buyers are gravitating towards brands they know and trust, placing greater emphasis on reliability, dealer support and long-term ownership value.”

Seele says this trend is evident in the recent sales numbers of South Africa’s traditional leading passenger vehicle brands, with Toyota, Suzuki and Volkswagen all recording three consecutive months of month-on-month growth.

Seele says June sales also benefited from improved market sentiment.

“We saw increased activity during the latter part of the month, helped by growing optimism around lower fuel prices and easing geopolitical tensions in the Middle East. Together with attractive quarter-end offers from a number of manufacturers, this created a more positive buying environment.

“Should current momentum be sustained, the industry is well positioned to exceed 600 000 new vehicle sales this year.”

WesBank senior economist Thanda Sithole is also positive about the outlook for vehicle sales in the second half of the year.

“Should the recent easing in fuel prices prove durable, it would provide further support to household affordability, creating a more favourable environment for new- vehicle demand in the second half of the year,” he said.