South African new car sales hit 13-year February high as exports decline

South Africa’s new-car market experienced its best February since 2013, with 53,455 units sold last month.

It was an increase of 11.4% compared with February 2025, and continued the industry’s recent high-flying performance, which saw annual sales grow 15.7% last year.

Passenger cars sold 37,576 units last month for an 11.3% increase over February 2025 while light commercial vehicles, including minibuses and bakkies, grew 11.9% to 13,218 units.

Medium commercial vehicle sales, at 720 units, were the same as in February 2025, while heavy trucks and buses, at 1,941 units, reflected a 13.6% increase over last year.

Industry body Naamsa said that the February 2026 performance reflects a broad-based improvement in underlying demand fundamentals. It said private-sector credit extension accelerated to 8.7% year-on-year in December, driven predominantly by robust corporate borrowing, while household credit growth improved gradually as cumulative interest rate reductions since late 2024 filtered into asset finance markets.

“Vehicle asset finance activity has strengthened as cumulative interest rate cuts since late 2024 improve affordability and support buyer sentiment,” it said.

The industry’s export performance remains subject to heightened protectionism across several of South Africa’s key export markets, while increasingly stringent decarbonisation requirements in destination markets continue to weigh on the competitiveness of South African vehicle exports
— Naamsa

However, February’s strong domestic sales were tempered by a dramatic decrease in exports to 24,221 units, a year-on-year drop of 28.1% compared with the corresponding month last year.

While domestic demand remains resilient, the sustainability of local original equipment manufacturers (OEMs) hinges on export recovery and policy certainty around the transition to new-energy vehicles (NEVs).

“The industry’s export performance remains subject to heightened protectionism across several of South Africa’s key export markets, while increasingly stringent decarbonisation requirements in destination markets continue to weigh on the competitiveness of South African vehicle exports,” said Naamsa.

The sector requires finalisation and legislative certainty on a technology-neutral NEV transition framework, the association said, as finance minister Enoch Godongwana’s 2026 budget speech last week provided no clarity on incentives and transitional arrangements aligned with export markets.

Given the global acceleration toward NEVs, vehicles built in South Africa will increasingly need to meet low- or zero-emission standards to remain eligible for export.

South Africa has introduced a 150% income tax deduction for businesses investing in new battery electric (BEV) and hydrogen vehicle production, but it excludes other NEVs such as hybrids and plug-in hybrids.

Local automotive manufacturers have lobbied the government to finalise legislation that would future-proof the local industry, saying policy uncertainty delays investment in local NEV production.

Shifting from internal combustion engines to NEVs (hybrid, electric and fuel cell) is required to keep the local industry competitive, particularly for exports to Europe where the race toward low- and zero-emission mobility is accelerating.

Toyota retained its position as South Africa’s best-selling brand in February with 12,272 units sold. It was followed by: