Interest Rate Cut Fuels Automotive Growth
The South African Reserve Bank decision to cut the repo rate by 25 basis points was in great support to the industrial growth, affordability, and macro-economic stability.
The automotive sector especially welcomed this decision that led to and supports consumer affordability.
Total new domestic vehicle sales in May 2025, at 45 308 units, reflected an increase of 8 169 units, or a substantial gain of 22,0%, from the 37 139 vehicles sold in May 2024.
The May 2025 new passenger car market at 31 741 units had registered an increase of 7 322 cars, or a gain of 30,0%, compared to the 24 419 new cars sold in May 2024. What is amazing is the fact Car rental sales accounted for 8,5% of new passenger vehicle sales during the month.
Sales for medium and heavy truck segments of the industry reflected a sound performance in May 2025 and at 660 mediums and 1 969 heavies respectively. Mediums truck sales recorded an increase of 122 units, or 22,7% from the 538 units sold in May 2024 in the case of heavy trucks and buses an increase of 124 vehicles, or 6,7%, compared to the 1 845 units sold in the corresponding month last year.
The SARB’s May decision to lower interest rates and the Rand regaining strength, further contributed to a inflation backdrop. The rate cut offers relief to households, enhancing vehicle affordability through lower financing costs.
The SARB’s rate cut surprisingly comes at a time of continued global uncertainty and represents a vital step toward for strengthening the Motor Manufacturing Industry positioning South Africa as a competitive manufacturing destination.
However, vehicle export sales decreased by 5 165 units, or 14,6%, to 30 112 units in May 2025 compared to the 35 277 vehicles exported in May 2024. Vehicle exports for the year to date were still 1,4% ahead of the same period last year.
Crime Threatens the Online Delivery Sector
The “online” delivery sector of business have proven to be a highly lucrative market for criminals! The thugs, gangs and syndicates have a variety to choose from, whether the aim is to acquire the goods for delivery, steal cash or devices carried by drivers or steal the vehicle including all of the above!
Vehicle-related crimes in South Africa are planned and executed with precision. Criminals also take advantage of the scheduled loadshedding time rosters and in some cases, they even “con” their victims by placing fraudulent orders.
These robberies have ripple effects that impact not only the drivers and customers that are affected, but also the broader e-commerce industry and ultimately the economy as a whole.
As these incidents become more frequent, the reputation of online deliveries in terms of safety and reliability is likely to suffer as a result of.
Home delivery plays a vital role in the online retail due to its convenience, therefore it is so important to ensure that adequate measures are in place to protect this aspect of the industry.
I think people underestimate the importance of a safety checklist, as well as guidance or training on how to prevent incidents. Drivers should also report any incidents and maintain a record of these occurrences to help identify high-risk areas.
Recommendations for Safer Deliveries
Subscribing to tracking services specifically designed for businesses can serve as a valuable tool in safeguarding drivers, delivery items, and vehicles. These services offer various safety features, including an assist button, journey sharing, impact detection, theft retrieval, and cargo door sensors. Driver monitoring is also possible through dual-view on-board cameras, allowing managers to monitor both conditions on the road and around the vehicle, as well as the driver, addressing concerns related to driver and vehicle.
Driver monitoring is also possible through dual-view on-board cameras, allowing managers to monitor both conditions on the road and around the vehicle. Advanced functionality can even include armed response on demand.
Final Thanks from CLC Trucks
In closing, we at CLC Trucks would like to yet again thank Naamsa for their ontime and accurate reporting!
We would also like to say a “huge” thank you to Fleetwatch Magazine for very informative articles and news. Well done to Mr Patrick O’Leary managing editor at Fleetwatch!!
From a CLC Trucks point of view, let’s make the best of June, amazing to think we’re all ready in moth six of 2025!!!
– Cobus Lourens –
