South Africans continued to flock to car showrooms last month, driven by decreasing interest rates and an influx of affordably priced imported models.

According to automotive body Naamsa, June’s new vehicle market grew for the ninth consecutive month to 47,294 units, an increase of 18.7% compared to June 2024. Year-to-date sales for the first half of the year are 13.6% up to 278,911 vehicles.

Last month the passenger car segment moved 32,570 units, a 21.7% increase over June 2024. Light commercial vehicles, bakkies and minibuses sold 12,129 units, a gain of 14.9% over the same month last year.

A wave of new models and brands continued to stimulate interest in the under R400,000 price band, said Brandon Cohen, chair of the National Automobile Dealers’ Association (Nada).

“Most of the growth we’re seeing is centred in the sub-R400,000 segment,” Cohen said.

“The price point remains critical for volume, affordability and trade-ins, with a direct knock-on effect on pre-owned sales performance. The used vehicle market is benefiting from improved affordability metrics, driven by softened interest rates, favourable vehicle pricing and the rollout of the two-pot retirement savings reform.”

The interest rate reprieve since September 2024 has lifted some burden on indebted consumers and stimulated demand for credit and consequently new vehicles, said Lebo Gaoaketse, head of marketing and communication at WesBank.

“The SA Reserve Bank has lowered rates 0.75% over the past nine months but may become more cautious with further cuts given global economic turmoil.” 

While lower rates have eased affordability marginally, motorists continue to face budget constraints. Despite low inflation, the average contract term continues to increase while the amount of credit reduces, he said.

“South Africans want new cars but they’re spending less on them. This has been enabled to some extent by the entrance of new brands to the market at aggressive price points, but also by innovative and attractive incentives on the dealer floor.”

Toyota continued its reign as South Africa’s most popular automotive brand in June with 11,690 sales, with Suzuki second on 5,221 and Volkswagen Group (including Audi) on 4,973.

As well as being the best-selling brand overall, Toyota made a clean sweep of all the segments. It dominated the bakkie wars with 3,035 sales of its ever-popular Hilux, soundly beating the rival Ford Ranger’s 2,318 and the Isuzu D-Max’s 1,678.

The Toyota Corolla Cross was the best-selling passenger car with 2,132 units, ahead of the VW Polo Vivo (1,962). The two are locally built, but the market share of locally assembled vehicles declined 14% between January and May 2025.

In contrast, the share of imported cars grew more than 25%, largely driven by keenly priced models from China and India, including the Chery Tiggo 4 Pro, which was the third-best selling passenger car in June with 1,538 units.