Lower interest rates drive increased SA car sales in February

New car sales in South Africa saw another healthy uptick last month to 47,978 units, a gain of 7.3% compared with February 2024. It followed a 10.4% gain in January.

Last month’s growth was driven by the passenger car segment which saw a 17% year-on-year increase to 33,757 units. As per the recent trend, however, sales of light commercial vehicles declined 11.3% to 11,802 units. This due to ongoing pressures in business confidence and fleet renewal cycles, according to motor industry umbrella body Naamsa.

Truck sales were a mixed bag with medium commercial vehicles gaining 11.8% to 721 units while heavy trucks and buses decreased 12.5% to 1,698 units.

“The 75-basis-point interest rate cut since September, coupled with expectations of further monetary easing, continued to improve vehicle affordability and stimulate demand,” said Naamsa CEO Mikel Mabasa.

He cautioned that inflationary risks remain a concern with a 12.74% electricity tariff hike set for April posing potential cost pressures for car brands.

Toyota retained its throne as Mzansi’s favourite brand last month with another dominant performance, but Suzuki overtook Volkswagen in the runner-up spot for the second month in a row.

BEST-SELLING BRANDS, FEBRUARY 2025

1. Toyota — 11,743
2. Suzuki — 6,044
3. Volkswagen group — 5,249
4. Hyundai — 3,074
5. Ford — 2,900
6. Isuzu Motors — 2,298
7. Chery — 1,924
8. GWM — 1,713
9. Mahindra — 1,610
10. Nissan — 1,497
11. Kia — 1,491
12. Renault — 1,466
13. BMW group — 1,256
14. Omoda and Jaecoo — 722
15. Stellantis — 501