“Despite global volatility, South Africa’s motor industry posted double-digit growth, with new vehicle sales up 12% year-on-year, outperforming GDP growth.”
South Africa’s motor trade sector continues to defy broader economic sluggishness, with the Drive Motor Index (DMI) hitting record highs. Vehicle sales surged by 12% in Q1 2026, driven by affordable imports from Southeast Asia and improved credit conditions. While GDP growth remains modest at 1.1%, the motor industry’s resilience highlights consumer demand for durable goods and the sector’s role in stimulating employment. Export declines have been offset by strong domestic sales, underscoring the importance of local consumption. For markets, the motor trade’s performance signals potential investment opportunities, particularly in retail and financing sectors linked to automotive demand. The industry’s strength also provides a buffer against broader economic headwinds, reinforcing its role as a key driver of South Africa’s markets.
