The Money Show Affordable cars drive SA’s vehicle sales past pre-pandemic levels
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Oct 2, 2025 Billy Tom, president of NAAMSA, shares insights into South Africa's booming vehicle sales, which are now surpassing pre-pandemic levels. He highlights strong consumer demand for affordable cars, especially from Chinese and Indian brands, fueled by lower interest rates. The discussion delves into how this shift impacts the market, emphasizing the risks of relying on imports over local manufacturing. Billy also points out that many desirable features are now standard, catering to budget-conscious buyers while raising concerns about job security in the industry.
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Affordable Segment Fuels Recovery
- Domestic new vehicle sales are now above pre-pandemic levels, driven largely by the affordable segment.
- The passenger vehicle segment grows 22.1% while affordable imports rise 30.2%, with Chinese brands up 69% year-to-date.
Rate Cuts Boost Buying, But Rates Are Still High
- Rate cuts (125 basis points) since September last year have supported buying, but rates remain above pre-COVID levels.
- Consumers respond to lower financing costs within months by opting for more purchases, often choosing cheaper models.
Buyers Are Choosing Feature-Rich, Cheaper Models
- Buyers are "buying down": choosing cheaper models with features that once were optional now standard.
- Indian manufacturing and imports (e.g., vehicles from India) add to the affordable choice set.