Business and especially new vehicle sales remain in full throttle into second half of the year!
The 25 basis points interest rate cut by the Reserve Bank in July positively reflected in the Automotive Industry.
More encouraging news is that household credit extension has also continued to improve, especially in the “middle” and “upper” income groups. Another favourable addition to this positive trend was the improvement of a much more stable electricity supply!
The South African new vehicle market continue on a winning streak!
The month of July delivered the highest monthly total sales figure reported since October 2019. Total new vehicle sales increased to 51,383 units in July 2025, or 15,6%, from the 44,452 units sold in July 2024.
Interesting is that the Car rental sales accounted for a sound 14,0% of new passenger vehicle sales during the month.
Sales for medium and heavy truck segments of the industry yet again reflected a mixed performance in July. Medium commercial vehicles sales at 703 units accounted for an increase of 13,9% comparing to the 617 units sold in July 2024 and, in the case of heavy trucks and buses a decrease of 27 vehicles, or 1,3%, compared to the 2,103 units sold in the corresponding month last year.
Export volumes for July 2025 decreased by 677 units, or 1,9% from the units exported in July 2024.
Encouragingly, the year-to-date vehicle exports were still 2,5% ahead of the same period 2024.
Expect more big trucks on South African roads
South African fuel suppliers are more and more looking to make use of trucks to transport the commodity to the inland as the cost of the nation’s main pipeline operated by Transnet just becomes too much!
The state-owned Transnet increased their tariff on April 1 on the line that runs from Durban to the Gauteng province, and their prices will increase another 5.7% in the next financial year.
In an interview with the CEO of the Fuels Industry Association of South Africa (a group whose members include BP, Shell and Total) Mr Avhapfani Tshifularo said that Trucking fuel just makes sense, – it’s quicker, and the cost is almost the same.
The growing appeal of transporting fuel by road comes as South Africa (Africa’s most industrialized nation) becomes more dependent on imports because of the declining refining capacity.
According to Daan Joubert, MD of Auto Commodities and Payloads, Fuel delivered through the pipeline from Durban still needs to be transported to the last stretch of its final destination at a total cost that’s about a third higher than transporting it exclusively by road.
From a CLC Trucks point of view, I always say “bare those trucks on our roads”,- as rolling wheels are synonymous to a “rolling economy”!
In closing, once again a big thank you to Naamsa for on time reporting and Businesstech for valuable industry information!
– Cobus Lourens –
