Interest rates have been reduced, petrol prices saw multiple declines in 2024, and South Africa has achieved more than 300 consecutive days without loadshedding. These factors are contributing to a sense of optimism as 2025 begins. According to the Ipsos 2025 Predictions Survey, 84% of South Africans believe this year will be better than the last.
Early indicators suggest 2025 is shaping up to be a turning point for South Africa’s economy and automotive industry. Economists speaking to Bloomberg forecast a growth rate of 1.7% for 2025, a notable improvement compared to the country’s average growth of under 1% over the past decade.
This optimism is reflected in the automotive market, where consumer confidence is gaining momentum.
In the first two weeks of 2025, used car enquiries have risen by 12% year-on-year, according to automotive marketplace AutoTrader, indicating growing consumer interest in vehicle purchases. The company’s recently launched “Do It Big” campaign, which encourages buyers to explore new and used vehicle options, has garnered more than 5.3 million views on YouTube since it launched in early January.
Volkswagen was the most searched brand during the same period, with a 13% year-on-year (YOY) increase in searches. Toyota followed closely, with a 14% increase, while Ford, ranked fifth, recorded 15% growth. In terms of vehicle enquiries, Toyota led with a 23% increase YOY, followed by Ford at 18%. On a model level, the Ford Ranger saw a notable 29% increase in enquiries, while the BMW 3 Series recorded an impressive 35% growth—a significant achievement for a premium model.
One of the strongest months for used vehicles was reported in October 2024, with 34,968 used vehicles sold1, while naamsa | The Automotive Business Council recorded an 8.2% increase in December sales to 29,775 vehicles. Full-year 2024 new car sales reached 351,302, a 1.1% improvement on 2023.
Automakers are equally upbeat. Chinese brand Chery reported combined 2024 sales of 19,971 vehicles in South Africa, driven by demand for affordable, value-packed models. November saw the brand’s best-ever monthly performance, with 2,006 units sold.
With a stronger economic forecast, rising consumer confidence, and improving sales data, the automotive sector is well-positioned for a strong year ahead.
Source:
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AutoTrader Data, 1-14 January 2025
