2026: Strong Start, Big Ambitions

I can’t believe that we are already well into Q1 of 2026. It feels like we were just wrapping up a great 2025, and yet here we are, with strong momentum, big plans, and plenty to be excited about as an industry.

The year has certainly started on an encouraging note. January new vehicle sales showed a 7.5% increase year-on-year, with passenger car volumes up 7.1%. That’s a significant vote of confidence from consumers and a clear signal that, despite ongoing economic uncertainty, there is real resilience in the market.

Retail channels accounted for an impressive 85.4% of total vehicle sales – a reminder of the critical role our franchised dealers continue to play in driving the industry forward. Demand remains strongest in the sub-R400 000 price bracket  underlining once again that affordability is central to purchasing decisions. At the same time, waiting lists for certain luxury models show that there is still appetite across segments where value and brand equity align.

On the macroeconomic front, the South African Reserve Bank’s decision to hold interest rates steady has provided some stability, even if many consumers were hoping for further relief. As we noted in our recent commentary, high debt-servicing costs continue to put pressure on middle-income households and impact vehicle affordability. While we acknowledge the SARB’s focus on price stability, future rate relief will be important to ease pressure on household budgets and further support demand across our sector.

Against this backdrop, two of our NADA SA executives have just returned from a successful visit to the 2026 NADA Show in Las Vegas. From cutting-edge AI technologies reshaping dealership operations to robust discussions with other franchise retail associations and international industry leaders, the global conversation is moving fast. We look forward to unpacking their insights and assessing how we stack up in South Africa, and, importantly, where we can lead rather than follow.

Speaking of looking ahead, I hope you have booked your seat for #NADAConnect on 12 March. The agenda is jam-packed with incredible speakers, the attendance numbers are very strong, and all signs point to what is going to be a fantastic, dealer-centric, practical, high-energy day. Conferences like this are more than calendar events. They are where ideas are tested, partnerships are strengthened, and we collectively shape the future of automotive retail in South Africa.

We are also on the brink of launching #MotoringMavericks, a campaign designed to shift perceptions and showcase the diverse, career paths available within South Africa’s vibrant automotive retail sector. As an industry that directly employs tens of thousands of people and supports many more through its multiplier effect, we have an incredible story to tell. Motoring Mavericks will help us tell it better – to young people, to career changers, and to the broader public who may not fully appreciate the scale of opportunity within our dealerships.

There is, without doubt, lots to look forward to.

As always, I hope you enjoy this issue of the newsletter. And please – share your stories with us. Whether it’s good news, innovation in your dealership, community initiatives, or insights you believe your fellow retailers would value, we would love to showcase them. This is your platform, and the stronger our shared voice, the stronger our industry.

Here’s to a productive and successful first quarter, and to building on the strong start we’ve already seen.

Best wishes

Brandon Cohen

Chairperson

NADA