The Indian brand selling more cars in South Africa than BMW, Nissan, and Mercedes-Benz

South Africa’s new vehicle market has experienced a significant surge in sales, with the Indian brand Mahindra selling more cars than many of Europe and Asia’s most popular brands.

The new vehicle market delivered a landmark performance in 2025, finally recovering above 2019 pre-pandemic levels and hitting highs not seen in a decade.

The upward swing is closely tied to broader economic improvements and was boosted by a cumulative 150 basis points in interest rate cuts since September 2024, due to low inflation and an influx of affordable model imports.

Naamsa said that the new vehicle market concluded the year on a strong note in December 2025, with aggregate industry new vehicle sales reaching 48,983 units, a year-on-year increase of 7,882 vehicles.

The December 2025 new passenger car market demonstrated a robust performance, with a year-on-year volume increase of 20.3%, while light commercial vehicles experienced a gain of 23.7%.

However, truck and bus sales ended the year on a weaker note, with medium commercial vehicles decreasing year-on-year by 7.0%, while heavy trucks and buses decreased year-on-year by 13.2%.

Upon examining the details, Toyota remained the largest seller, with 12,933 vehicles sold in December 2025. This was followed by Volkswagen (5,014) and Suzuki (4,961).

While the rest of the top ten is comprised of cars from established brands, including Ford and Kia, there is a rise of Chinese brands, such as GWM and Chery.

Chinese brands have been consistently outpacing their European rivals in sales growth in South Africa for some time. However, the Indian brand, Mahindra, has also been selling more cars.

In December 2025, Mahindra sold 1,234 vehicles, making it the 13th largest vehicle seller in South Africa. The company sold more cars than Nissan, which sold 1,011 units.

This was well ahead of BMW, which sold 843 vehicles over the period. It also sold more than Stellantis, which houses several major brands, including Jeep and Opel, which sold 524 units.

Associated with high-end luxury, Mercedes-Benz sold an estimated 474 units during the final month of the year.

While ranking 13th in December, Mahindra has consistently been among the top-10 sellers throughout the year, ranking 10th when considering data for the full year.

Although Mahindra has been present in South Africa for two decades, the Indian company has aggressively expanded its market share in recent years. Its models are primarily small SUVs and bakkies.

The company recently opened a R70 million vehicle assembly facility in Durban at the Dube TradePort Special Economic Zone.

Outlook for 2026

Looking ahead, Naamsa said that the impact of the 2025 interest rate cuts and lower inflation is expected to result in a further boost to consumer disposable income in 2026.

“The South African Reserve Bank projects real GDP growth for 2026 at around 1,4% to 1,6%, supported by ongoing structural reforms in electricity and transport through Operation Vulindlela,” said Naamsa.

“The new vehicle market momentum is upward, and 2026 new vehicle sales are poised for a further upper single-digit to lower double-digit improvement of 9% to 11% over 2025 levels.”

Globally, geopolitical shifts will impact South Africa. Declining sales in China’s domestic vehicle sales are expected to drive a continued “Affordability Influx” as its manufacturers look outward for growth.

Although the US economy presents uncertainties for exporters, the industry remains focused on securing its position in the EU, which is easily the most important export regional destination.

Source: BusinessTech