South Africa’s retail motor industry continues to show remarkable robustness, but beneath the encouraging April sales figures lies a far more nuanced story.

April 2026 delivered the strongest April new vehicle sales performance since 2013, with 47,979 units sold nationally, despite significant economic and geopolitical pressures. Passenger vehicle sales rose 14.3% year-on-year, while light commercial vehicles increased by 9.7%, with even medium and heavy commercial segments posting positive growth.

Strong sales mask growing consumer pressure

At first glance, these numbers suggest a buoyant market. The reality on dealership floors, however, is more complex.

Dealers are working significantly harder to conclude transactions. Consumers are cautious, financially stretched and increasingly selective in their purchasing decisions. While many South Africans are still entering the market, they are doing so with far more scrutiny around affordability, running costs and long-term financial exposure.

The strength in sales is being driven by several converging factors. Firstly, consumers remain concerned about future vehicle price increases linked to global supply chain volatility and ongoing geopolitical instability. Secondly, dealerships have adapted exceptionally well, using creative retailing strategies and intensified promotional activity to maintain momentum during a month heavily disrupted by public holidays and school breaks.

Sustainability remains the key question

However, sustainability remains the key question. South Africa’s consumers remain under severe cost-of-living pressure. Fuel costs, inflationary concerns and the prospect of future interest rate hikes continue to weigh heavily on household budgets. Discovery Bank data showing a 35% decline in fuel purchases during April paints a worrying picture of consumer strain. That level of behavioural adjustment signals that many households are already cutting back aggressively.

Vehicle finance remains relatively resilient for now, but the pressure is evident. Consumers are increasingly applying for finance to test affordability rather than immediately committing to purchases. In many cases, they are delaying buying decisions altogether after assessing repayments.

Value-driven purchasing shapes the market

What is particularly noticeable is the continued shift toward value-driven purchasing behaviour. The market remains heavily concentrated in the entry-level to mid-range vehicle segments. Consumers are actively seeking lower-priced models, quality demo vehicles and increasingly, affordable hybrid options. Asian brands continue gaining traction in this environment, while trusted traditional brands remain strong performers in the used vehicle market.

The April export decline, meanwhile, should not be interpreted as weakness in the domestic market. Export volumes operate according to global production cycles and international ordering processes that are largely disconnected from local retail performance. These fluctuations are normal within the manufacturing environment and are influenced by international demand conditions rather than South African dealership activity.

Retail must not become the forgotten link

Looking ahead, government policy support remains critical. While South Africa’s automotive manufacturing sector remains strategically important, retail must not become the forgotten component of the automotive value chain. Retail employs significantly more South Africans than manufacturing and supports thousands of jobs across dealerships, workshops, finance and aftermarket services nationwide.

Protecting manufacturing competitiveness cannot come at the expense of consumer choice, competitive vehicle pricing or retail sector sustainability. Policymakers must continue balancing industrial support with measures that stimulate consumer affordability and protect employment throughout the broader automotive ecosystem.

Investing in the industry’s future talent

This is particularly important as the industry grapples with attracting and developing future talent.

One of the most encouraging developments in recent months has been the launch of NADA’s Motoring Mavericks campaign at the NADA Dealer Conference in March. The initiative was designed to reposition the retail automotive sector as a modern, technology-driven and opportunity-rich career destination for young South Africans.

The early response has exceeded expectations.

The campaign has already generated more than one million video views across platforms, over 1.1 million total reach, and exceptionally strong engagement from younger audiences actively exploring automotive career opportunities.

Importantly, the campaign is also beginning to shift perceptions around diversity within the sector, with increasing female engagement emerging across key digital platforms and campaign touchpoints.

An industry built on resilience and people

At a time when South Africa urgently needs economic growth, skills development and employment creation, the retail motor industry continues to demonstrate not only hardiness, but adaptability, innovation and long-term commitment to the country’s future.

As we move further into 2026, I want to sincerely thank our dealer members across the country for their continued endurance, professionalism and commitment to the industry. The current trading environment is not an easy one, and yet every day our retailers continue to adapt, innovate and serve South African consumers with determination and optimism.

The strength of this industry has always been its people – from dealership owners and managers to sales executives, technicians, finance teams and support staff. It is because of your hard work that the retail automotive sector continues to play such a vital role in supporting economic activity, skills development and employment in South Africa.

We also remain encouraged by the growing momentum behind initiatives such as Motoring Mavericks, which are helping us attract a new generation of talent into our sector and secure the future of automotive retail for years to come.

While challenges remain, our industry has once again demonstrated its ability to navigate uncertainty with agility. On behalf of NADA, thank you for your ongoing support, leadership and belief in the future of our sector.

Best wishes

Brandon Cohen

Chairperson

NADA