Strong Start for South Africa’s Vehicle Market

South Africa’s passenger car sales kicked off the year on a high note, recording an impressive 18.3% increase compared to January 2024. This growth continues the momentum from the previous year’s final quarter, with the rental industry playing a key role—accounting for 14.8% of total vehicle sales and 19.1% of passenger car sales. Adding to the positive outlook, exports of built-up vehicles surged by 29.7%, a crucial boost for local manufacturers.

South Africa’s new car market sales

February continued the upward trend, with total new vehicle sales reaching 47,978 units—up by 3,229 units (7.3%) from the 44,749 sold in February 2024, according to Naamsa.

Three consecutive interest rate reductions have lowered prime lending rates by 0.75%, with the latest cut occurring in January. While further rate cuts could enhance affordability and drive market activity, rising costs—such as electricity tariffs and fuel prices—are causing economists to reconsider the pace of future reductions. Some now anticipate fewer cuts this year than initially expected, warns Lebo Gaoaketse, head of marketing and communication at WesBank.

February’s top 5 best-selling vehicles

Toyota South Africa retained its position as the country’s top-selling car brand in February 2025, despite a 3.4% year-on-year decline, recording 11,743 units sold. Suzuki South Africa secured second place for the second consecutive month, outselling Volkswagen with 6,044 units. Volkswagen followed in third place with 5,249 units, while Hyundai took fourth with 3,074 units. Ford rounded out the top five, recording 2,900 units sold.

The National Automobile Dealers’ Association (NADA) highlighted a growing trend in the market, noting that smaller brands are gaining traction in the top 10 rankings. Brands such as Suzuki, Hyundai, Kia, Mahindra, and Chery are increasingly competing in the entry-level and budget-friendly segments. This shift suggests that affordability is a key driver of sales, allowing more consumers to enter the new-car market.

Best-selling brand: Toyota

Toyota continued to dominate the South African automotive market in February 2025, securing the top position across the Passenger, Light Commercial Vehicle (LCV), and Medium Commercial Vehicle (MCV) segments. The brand’s sustained leadership reflects the dedication of its employees, dealers, suppliers, and customers, fostering a supportive environment for meeting diverse mobility needs.

Strong Performance Across Passenger and SUV Segments

Leading Toyota’s sales in February was the Corolla Cross, recently named the Compact Family Car of the Year, with 1,435 units sold. Following closely were the Starlet and Starlet Cross, recording 1,279 and 1,003 units, respectively. Another standout performer was the Urban Cruiser, the Budget Crossover of the Year, which achieved 875 sales. The Vitz also showed steady demand, reaching 551 units.

The Toyota Prado saw an increase in sales, with 375 units sold—64 more than in January—marking a notable achievement for the luxury SUV in its segment.

Within the luxury division, Lexus demonstrated resilience in a challenging premium market. The Lexus NX saw an increase from 20 units in January to 32 in February, while the Lexus ES and RX each sold 12 units. Overall, Lexus delivered 68 units for the month.

Hilux Dominates the LCV Market

Toyota maintained its stronghold in the light commercial vehicle segment, with the Hilux emerging as the country’s best-selling model. A total of 2,683 units were sold, led by the Hilux Single Cab at 1,187 units, reinforcing its popularity within fleet operations. The Hilux Double Cab also saw growth, with 1,120 units sold, reflecting a 10% increase compared to February 2024, as more business customers turned to Toyota’s robust workhorse.

Commercial Vehicle Leadership

In the MCV category, Toyota led with a 32% segment share, driven by strong sales from the Quantum Bus (82 units), Coaster (59 units), and Hino 300 (89 units). These models continued to serve South Africa’s public and commercial transport sectors. Meanwhile, the Hino 500 and 700 truck models contributed an additional 118 units to the heavy commercial vehicle market.

Business and Fleet Sales Growth

Toyota’s dealer sales to business customers grew 6.7% year-on-year, increasing from 3,651 units in February 2024 to 3,894 units in February 2025. This uptick highlights the increasing demand for Toyota’s fleet models, driven by their reliability and competitive pricing.

Strong Performance in Parts Distribution

Toyota’s parts division remained a key pillar of the brand’s operations, distributing nearly two million parts locally in February. Additionally, 345,514 parts were exported to international markets, reinforcing Toyota’s footprint in the global supply chain.

With a balanced performance across passenger, commercial, and fleet sales, Toyota’s dominance in the South African automotive market remains unchallenged, underscoring its ability to adapt to evolving consumer and business needs.

Looking ahead
As the year progresses, market trends will likely be influenced by economic factors such as interest rate decisions and inflation. However, with growing competition in the budget segment and consistent demand for reliable fleet vehicles, South Africa’s automotive sector remains poised for continued momentum.

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