Car rental operators say demand for SUVs, double-cabs and small fuel-efficient hatchbacks has surged since mid November, with many companies warning that their December fleets are nearly fully booked. Small rental firms are also reporting their best December prospects since before the pandemic.
South Africa’s car-rental industry is heading into one of its busiest festive seasons in years as thousands of travellers prepare to drive long distances to the Eastern Cape, KwaZulu-Natal and Lesotho.
According to new industry data from Statista, South Africa’s car-rental market is projected to generate more than R6.5 billion in 2025, with demand rising steadily each holiday season. The sector has been expanding its fleets to keep up.
Figures published by the automotive industry in July showed that rental-fleet buyers accounted for 11.1 percent of all new vehicles sold that month, underscoring the strength of the market.
Durban car-hire operator Mxolisi Hadebe told Vutivi Business News that this year’s December bookings began earlier than usual.
“Most people are travelling home to the Eastern Cape and Lesotho for Christmas and they want vehicles that can handle long-distance roads and heavy loading,” he said. “By the first week of December my SUVs and bakkies were already gone. I only have small hatchbacks left and even those move quickly when it gets closer to the 15th.”
Hadebe said the strongest demand is coming from families who travel in groups and prefer SUVs that can carry luggage and navigate rural routes. He also noted a rise in bookings from Gauteng residents who travel to Durban for beach holidays but do not want to use their own vehicles for the trip.
“People like the convenience of picking up a car in Durban without putting extra mileage on their own,” he said.
Industry statistics support the shift toward larger vehicles. The Toyota Fortuner, Toyota Hilux and Volkswagen Polo were among the most purchased models by rental companies in recent months, according to national fleet-sales figures. Operators say the Fortuner remains the top request among holiday travellers because of its size and durability.
Cape Town rental agent Thabo Maqetuka said small businesses in the sector rely heavily on the festive season to stay afloat.
“December is where we make the money that carries us through January and February,” he said. “International visitors boost demand in Cape Town but the local market also grows because many people fly in and then hire a car for the Garden Route.”
One major rental group operating locally reported year-on-year revenue growth of 26 percent, according to recent financial disclosures. Industry observers say this momentum is a sign of sustained recovery and strong consumer travel patterns.
Maqetuka added that rising interest in neighbouring countries is also shaping demand.
“Lesotho is becoming a hotspot for December getaways. People want 4x4s for the mountains and those vehicles get booked months ahead,” he said.
Smaller township-based rental firms are also seeing a spike in business. Soweto operator Pearl Sithole said many of her customers travel to Mthatha, Flagstaff and Lusikisiki for the holidays.
“Most families want cars with big boots because they carry groceries and gifts home,” she said. “December is our busiest time. Sometimes all cars are out at once and we have to turn people away.”
While the industry expects a successful festive season, operators warn that late planners may struggle to secure vehicles with enough carrying capacity. With many fleets already stretched, some firms say they are measuring demand to decide whether to expand further in 2026.
lazola@vutivibusiness.co.za
