South Africa’s new vehicle market maintained its strong momentum in July.Against a backdrop of stable interest rates, easing petrol costs and value-conscious purchasing decisions, total new vehicle sales reached 57,708 units, an increase of 11.9% compared with the same month last year according to figures released by Naamsa.Passenger vehicle sales rose by 12.5% to 40,912 units, the strongest monthly passenger car performance since September 2014, while light commercial vehicle sales increased by 10.6% to 13,710 units compared to July 2025. “July’s performance suggests the domestic vehicle market is benefiting from a convergence of supportive factors,” said Thanda Sithole, senior economist at FNB and WesBank. “Relatively lower fuel prices have eased pressure on household budgets and, together with the pause in interest rates, have improved affordability at the margin, providing some support for demand for new vehicles.“Affordability continues to shape how South Africans finance their vehicles. Headline consumer price inflation accelerated to 5% in June 2026, largely reflecting supply-side pressures stemming from the Middle East conflict. Against this backdrop, the South African Reserve Bank’s Monetary Policy Committee kept the repo rate steady at 7% (prime lending rate of 10.5%) at its July meeting.“With borrowing costs remaining elevated, consumers continue to rely on flexible financing structures, including longer loan terms and balloon payment options, to keep monthly instalments affordable.”Consumers are increasingly exploring both new and pre-owned vehicles to maximise value, while dealers are beginning to see growing interest in pre-owned Chinese brands as an affordable alternative. At the same time, new Chinese vehicles continue to attract buyers seeking modern features at competitive prices— Brandon Cohen, National Automobile Dealer’s Association chairBrandon Cohen, chair of the National Automobile Dealer’s Association (Nada), said the July results clearly indicate that consumer confidence is improving.“The South African Reserve Bank’s recent decision to leave interest rates unchanged has provided consumers with greater certainty around their monthly financial commitments. The latest reduction in petrol prices will also provide welcome relief to motorists, although higher diesel prices will continue to place pressure on transport operators and businesses.”He said dealerships are also reporting increased activity in the pre-owned market, with stronger customer enquiries, finance applications and deal conversions during July. “Consumers are increasingly exploring both new and pre-owned vehicles to maximise value, while dealers are beginning to see growing interest in pre-owned Chinese brands as an affordable alternative. At the same time, new Chinese vehicles continue to attract buyers seeking modern features at competitive prices,” he said.New Energy Vehicle (NEV) adoption also continues to build momentum. The latest available data, for June 2026, shows 3,045 NEVs sold, a 104.2% increase on the 1,491 units recorded in June 2025, taking NEV penetration to 6% of total domestic new light vehicle sales. Traditional hybrids continue to lead the segment, accounting for 48.9% of NEV sales, followed by plug-in hybrids at 32.5% and battery electric vehicles at 13.8%. Year to date, South Africa has recorded 13,193 NEV sales.The commercial vehicle market also delivered encouraging results during July. Medium commercial vehicle sales increased by 19.4% compared to July 2025, recording their strongest monthly performance since March 2023, while heavy commercial vehicle sales grew by 16.4% and extra-heavy commercial vehicles improved by 7.9%.“Commercial vehicle purchasing is often one of the earliest indicators of business activity,” said Martin van den Berg, Nada commercial vehicle executive. “Investment in distribution fleets, construction vehicles and freight capacity suggests that many businesses are planning ahead with confidence. While it is too early to call it a broad-based recovery, these are positive signals from sectors that typically invest ahead of growth.”Toyota maintained its lead in July as South Africa’s most popular brand in new-car sales, ahead of Suzuki, Volkswagen, Hyundai, Ford, Chery and GWM.The Toyota Hilux was the best-selling model range, exceeding 4,000 monthly units, with the VW Polo Vivo the best-selling passenger car.Best-selling models in July 2026Toyota Hilux - 4,189;VW Polo Vivo - 2,503;Chery Tiggo 4 - 2,110;Ford Ranger - 2,063;Isuzu D-Max - 1,969;Suzuki Swift – 1,916;Toyota Corolla Cross - 1,626;Hyundai Grand i10 - 1,482;Toyota Starlet - 1,453;Suzuki Fronx - 1,185;Haval Jolion - 1,132;Suzuki Ertiga - 1,085;Toyota Urban Cruiser - 968;Toyota Vitz - 956;Jetour T2 - 925;Omoda C5 - 889;Kia Sonet - 821;Toyota Starlet Cross - 803;VW Polo - 756;Toyota Fortuner - 722;VW T-Cross - 693;Mahindra Scorpio Pik-Up - 681;Toyota Hiace - 670;Toyota Rumion - 591;Tata Tiago - 587;Renault Triber - 554;Hyundai i20 - 548;Suzuki Baleno - 473;Ford Territory - 469;Jetour T1 - 451.Source: Lightstone/Naamsa