Given that much of the market braced

0%, keeping the prime lending rate at 10.5%.

The decision came as a positive surprise to many industry stakeholders and market analysts, who had widely anticipated a rate hike in light of persistent macroeconomic pressures.

NADA emphasises that the central bank’s decision bodes well for promoting household affordability and safeguarding the strong momentum experienced in South Africa’s automotive sector over the first half of the year.

Given that much of the market braced for a tightening of monetary policy, the decision to hold interest rates steady is a welcome relief for consumers and vehicle retailers,” says NADA Chairperson Brandon Cohen. “Maintaining the prime lending rate at 10.50% provides much-needed support for consumer affordability and gives prospective buyers the confidence to move forward with finance applications.

The automotive retail sector entered the second half of 2026 with strong wind in its sails, driven by robust new vehicle sales. NADA notes that rate stability is critical to keeping the market on track toward its milestone target of exceeding 600,000-unit sales this year.

While economic headwinds and cost-of living pressures remain

Vehicle purchasing is typically a long-term financial commitment, and interest rate stability plays a central role in driving consumer sentiment,” adds Cohen. “With rates remaining flat rather than increasing, monthly instalment calculations remain manageable. This allows the positive momentum we’ve seen across both passenger and commercial segments to continue uninterrupted.

While economic headwinds and cost-of-living pressures remain a reality for South African households, NADA believes the Reserve Bank’s cautious hold reinforces stability and helps unlock ongoing demand across showroom floors nationwide.

NADA is a proud association of the Retail Motor Industry Organisation (RMI).