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Positive Momentum Amid Persistent Pressure
As we move into the second quarter of 2025, it’s worth reflecting on key developments shaping the automotive retail environment.
Relief for Consumers and Industry
NADA welcomes the announcement that the proposed 0.5% VAT increase will not proceed. At a time when South Africans are under significant financial pressure, this is a much-needed reprieve. Avoiding additional tax burdens helps safeguard consumer confidence and preserves disposable income – two key factors in driving GDP growth.
Green Shoots in the Economy
Encouragingly, this announcement comes alongside several other positive economic signals. Inflation figures have hit their best level in five years, oil prices remain under $70 a barrel, and fuel is nearly 9% cheaper than in 2024. On the international front, the suspension of US tariffs for 90 days and direct engagement with the US government signal renewed optimism for trade relations.
While challenges remain, the overall trajectory points towards greater macroeconomic stability. Policy consistency and a stable operating environment are critical to restoring confidence across the automotive value chain – from manufacturers and dealers to business and consumers.
Navigating 2025: Trends and Insights
With the first third of 2025 behind us, the market continues to reflect a dual challenge of affordability and availability. Consumers are feeling the pinch and are either buying down, opting for used models, or extending the life of their vehicles with service and maintenance plans.
Vehicle preferences are shifting accordingly. Chinese and Indian brands are gaining market share by delivering good stock availability, attractive pricing, and strong spec offerings. Hybrid vehicles are gaining traction – particularly the Toyota Corolla Cross – while EVs, though growing, remain constrained by pricing and infrastructure concerns.
Efficiency remains the name of the game. Dealers are navigating an oversaturated and highly competitive landscape, where operational excellence is crucial. Omnichannel interactions and a seamless digital-to-dealership journey are now expected by today’s informed buyer.
Looking Ahead
The remainder of 2025 will not be without turbulence. Global uncertainty, sluggish local growth, and political shifts ahead of local government elections in 2026 will test the resilience of both consumers and businesses. Yet the role of the dealer and F&I is becoming more central – not less.
AI will increasingly assist consumers with research and options, but people still buy from people. Trust, service, and integrity will differentiate successful dealerships from the rest.
At NADA, we remain optimistic. Every challenge presents opportunity – and by maintaining professional standards, advocating for our sector, and putting the consumer first, we are well placed to navigate whatever lies ahead.
Best wishes
Brandon Cohen
Chairperson
NADA
FUEL FOR THOUGHT
What do hybrids really offer when it comes to fuel consumption and emissions? And is the premium worth it? In this edition of Auto Insights, Lightstone looks at how engine types stack up on efficiency, and tracks the growing SUV takeover, breaks down a brighter 2025 sales forecast, and puts a spotlight on the Lightstone tools that can boost dealer performance. Lightstone also honours its EchoMBR legacy and kick starts its 2025 F&I Star Reacher Awards.
IMPORTANT DATES TO DIARISE – JOIN US AT THE UPCOMING NADA AGMs
Every two years, NADA holds Annual General Meetings (AGMs) across the regions to elect the representatives who will serve our members at local, provincial and national levels. Please diarise the dates and click the Read More button for the full schedule and further details.
NADA DEALER SATISFACTION INDEX SURVEY 2025 UNDERWAY
Since its inception in 1996, the NADA Dealer Satisfaction Index (DSI) Survey has been a cornerstone initiative to deepen the understanding of motor industry dynamics in South Africa. Developed in collaboration with research partners Lightstone, the NADA DSI Survey has become a vital management tool, enabling both franchise motor vehicle dealers and motor vehicle OEMs/Importers to strengthen their working relationships. Now entering its 29th consecutive year, the DSI Survey remains a benchmark for dealer-OEM relations.
GEAR UP FOR THE ULTIMATE AUTOMOTIVE AFTERMARKET INDUSTRY EXPERIENCE
The South African automotive industry is gearing up for an unmissable event – Automechanika Johannesburg 2025. This landmark 10th edition of this automotive aftermarket trade fair is set to take place at the Gallagher Convention Centre in Midrand from 28-30 October, coinciding with Transport Month. The event will showcase six comprehensive product categories, covering everything from parts and components to cutting-edge digital solutions and sustainable automotive advancements.
APPRENTICE FROM NADA DEALERSHIP MAKES HISTORY WITH FIRST INTERCONTINENTAL STEM CELL MATCH
We are proud to share that one of our very own, Bradley Peters (23), an apprentice mechanic from the Ronnie’s Group in East London — a NADA member dealership — has been identified as a life-saving stem cell donor match for a patient in South America. Peters signed up by chance during an awareness drive for the Matches on the Map campaign last year, making him the first confirmed match for a patient, not only in the country, but across the 64-country, 10-year voyage.
GEARING UP WITH ASHLEY SAMUEL – THE NEW NADA NATIONAL DIRECTOR
The South African automotive landscape is undergoing seismic change – and Ashley, the newly appointed NADA National Director who takes over the reins from Gary McCraw on 2 May 2025 , is right at the heart of it.
In a candid interview, Ashley offers an insider’s perspective on the challenges and opportunities facing dealers today.
Ashley unpacks the broader economic forces at play – from high interest rates and fuel costs to the critical role dealerships play in employment and local economic stability. He doesn’t shy away from the hard truths but remains optimistic about the resilience of South Africa’s motor industry.
With electrification gathering global momentum but still lagging locally, Ashley shares insights on how dealers are preparing for an uncertain but exciting future. He also addresses tough questions about government support, global competition, and how dealerships are adapting to meet new customer needs.
Don’t miss Ashley’s full interview — it’s a must-read for anyone interested in the future of South African mobility and the vibrant, ever-evolving world of vehicle retail.
