South Africa’s new vehicle market continued to show its teeth in May 2026, posting the strongest sales for that month since 2013 despite a late interest rate hike and climbing fuel bills that have put the squeeze on household budgets.
According to figures released this week by naamsa | The Automotive Business Council, aggregate domestic sales reached 51?071 units last month. That is a solid 12,8% jump compared to the 45?287 vehicles sold in May 2025. The market has now strung together 20 consecutive months of year-on-year growth, suggesting the recovery that started gathering steam last year still has plenty of life left in it.
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What makes the performance particularly striking is the timing. Just days before the month closed, the South African Reserve Bank lifted the repo rate by 25 basis points to 7,00% in response to inflation accelerating to 4,0% in April, driven largely by a spike in global oil prices. The prime lending rate now sits at 10,50%, meaning the cost of credit – which finances most new vehicle purchases – has just become noticeably steeper.
Yet buyers did not flinch. At least not in May.
The new passenger car segment was the real standout, moving 36?871 units for a gain of 16,3% compared with the same month last year. Light commercial vehicles – the bakkies and minibuses that are the workhorses of our roads – added 11?251 units, up 2,5%.
Toyota once again wore the crown as the country’s favourite brand, shifting 10?667 vehicles across its passenger and commercial ranges. The Hilux, despite being the outgoing model with a ninth-generation replacement due in weeks, held onto the top spot in the bakkie standings with 2?488 units. The Ford Ranger followed closely with 2?073 units, while the Isuzu D-Max completed the podium on 1?009 units.
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In the passenger car rankings, the VW Polo Vivo returned to form as the best-selling car in the country with 2?335 units, fending off a strong challenge from the Chery Tiggo 4 Pro, which shifted 2?059 units. The Hyundai Grand i10 (1?796 units) and Suzuki Swift (1?588 units) rounded out the top four, showing that budget-conscious buyers are still very much active.
Suzuki secured second place among brands with 5?546 sales, just ahead of the Volkswagen Group’s 5?295 units. Chinese brands continued their march up the leaderboard, with GWM (2?605), Chery (2?569) and Jetour (2?202) all landing inside the top eight.
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The export picture was less rosy. Sales to foreign markets fell 4,8% to 29?392 units, with the sharp drop in light commercial vehicle shipments blamed on a phased rollout of new-model production by a major exporter.
Back home, the way South Africans are buying is changing. Dealer sales accounted for an estimated 90,1% of the total, with rental companies (5,3%), corporate fleets (2,5%) and government (2,1%) making up the balance. But beneath those numbers, there is a clear shift in behaviour.
Brandon Cohen, National Chairperson of the National Automobile Dealers Association (NADA), said buyers are not walking away from showroom floors – they are just taking their time.
"Customers are spending more time evaluating options, comparing finance offers and considering total cost of ownership before committing to a purchase," Cohen says. "Dealers are having to work harder to convert enquiries into sales, but the demand is still there."
That extra caution is showing up in the growing appetite for vehicles that sip rather than guzzle. New energy vehicle sales – including hybrids and electric models – jumped 120% compared with May 2025, as petrol prices climbed and buyers started doing the maths on running costs.
Henry Botha of Absa Vehicle and Asset Finance said the trend mirrors what happened during the worst of load-shedding, when households invested in solar power to reduce exposure to rising electricity tariffs.
"I think that's what's happening now," Botha told CNBC Africa. “Buyers are looking for long-term value and lower daily operating costs, and the difference this time is that affordable electrified options actually exist.”
The question now is whether the resilience can hold. naamsa acknowledged that the economic backdrop has shifted, with fuel prices rising sharply during April and May and the Reserve Bank signalling that further rate increases are still possible later in the year.
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"The environment has since shifted," the industry body said in a statement. "Rising fuel prices, mounting inflation risks and a changing interest rate outlook have altered the trajectory of the broader economy, introducing new pressures on household budgets and business operating costs”.
Ryan Seele, an executive member of NADA, said demand is still strongest below the R500?000 price point, were affordability bites hardest. The premium segment, however, has held up surprisingly well, supported largely by cash buyers who are less exposed to interest rate movements.
For now, the message from May is clear: South Africans are still prioritising mobility, even in a tight economic environment. Whether that appetite survives a full year of higher rates and pricier fuel is the story the second half of 2026 will have to tell.
Colin Windell for Colin-on-Cars in association with
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