Positive Signs For New And Used Car Sales SA
The South African new-vehicle market is showing steady signs of growth, and that’s great news all round, especially if you’re in the market for a used car. April 2025 marked the seventh straight month of year-on-year gains, with an 11.9% increase in new vehicle sales compared to April 2024.
This steady climb signals not just recovery but also resilience in the face of global and local economic pressures. And yes, it directly influences the used car market too; here’s how.
Why New Sales Matter To Used Car Buyers
The connection is simple. When new vehicles sell in higher volumes, there are more trade-ins and lease returns entering the used car market. This boosts availability, keeps prices more stable, and gives buyers a wider range to choose from. When new car sales slow down, the opposite tends to happen. Fewer trade-ins result in reduced inventory, and with demand still strong, prices can creep up.
At Group1 Cars, we keep a close watch on new vehicle trends because they shape the landscape for our used car buyers. Right now, the outlook is promising.
Growth Continues Despite Economic Challenges
According to the Naamsa Flash Report for April 2025, total new vehicle sales reached 42,401 units, reflecting a solid year-on-year increase from April 2024’s figure of 37,899. This growth was achieved despite fewer selling days due to public holidays, as well as ongoing issues like intermittent load-shedding and political uncertainty surrounding the now-scrapped VAT hike.
Of the April 2025 sales:
- 87.9% were made through dealer networks
- 7% went to rental fleets
- The remainder went to government and corporate customers
Passenger And Bakkie Sales Lead The Pack
Passenger vehicles drove the trend with 30,101 units sold, which is a 16.9% increase from April 2024. These vehicles range from small hatchbacks to family sedans and SUVs. Sales to rental companies made up 8.9% of this total, showing continued strength in the travel and tourism sectors.
Light commercial vehicles (LCVs), including bakkies and vans, recorded 9,961 units, a 3.2% increase year-on-year. This is a good sign for the broader economy, as LCVs are often used by small businesses and tradespeople. Brandon Cohen, Chairperson of NADA, said the results were “a pleasant surprise to even the most avid industry observers”.
Top Selling Brands In April
Toyota maintained its position at the top with 10,363 units, despite a dip from the previous month. Suzuki followed with 5,977 units, while Volkswagen secured third place with 3,973 units, although this was a notable drop compared to previous performance.
Here’s a look at the top 5 automakers for April 2025:
- Toyota – 10,363 units
- Suzuki – 5,977 units
- Volkswagen Group – 3,973 units
- Hyundai – 3,007 units
- Ford – 2,398 units
Other brands like Chery, GWM, and Jetour also continued to gain traction, offering consumers fresh options at competitive prices.
Exports Dip But Remain Stable Year-To-Date
While local sales were strong, exports dropped by 6.6% to 31,822 units in April. This dip was largely attributed to the temporary production halt at Volkswagen Group Africa’s Kariega plant, which underwent upgrades. Despite the monthly drop, exports for the year so far are still 6.3% ahead of the same period in 2024, reflecting long-term resilience.
There is some concern about the future of exports due to US-imposed Section 232 tariffs. These changes could affect the competitiveness of South African-built vehicles in global markets, particularly those headed for the United States.
Economic Indicators Show Positive Signs
Naamsa reported that inflation dropped to 2.7% in March 2025, the lowest rate in nearly five years. With the VAT increase scrapped and interest rate cuts potentially on the horizon, South Africans may have a little more spending power in the months to come. This creates a more favourable environment for vehicle purchases.
Finance institutions like WesBank have also noted strong demand for vehicle finance. Despite ongoing budget constraints, consumers are becoming more intentional with their purchases, looking for reliable, good-value options.
What This Means For Used Car Buyers
This growing momentum in the new vehicle market has a ripple effect. It improves the volume and quality of used cars entering the market through trade-ins and lease returns. That’s great news for buyers looking for affordable, well-maintained pre-owned options.
At Group1 Cars, we are already seeing the benefits. Our nationwide dealerships are stocked with a wide range of quality used vehicles, from compact cars to rugged bakkies and premium SUVs. Whether you are upgrading your ride or buying your first car, the timing is excellent.
Stay Ahead Of The Curve With Group1 Cars
The upward trend in new car sales means a more dynamic and competitive used vehicle market. We’ll continue monitoring the data to help our customers make informed decisions. Check back soon for more insights, tips, and updates from the Group1 Cars team. Whether you’re after value, variety, or vehicle advice, we’re here to help you drive away happy.
Sources: Naamsa Flash Report (April 2025)
