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3 car brands taking over South Africa

By BusinessTech - Malcolm Libera 08 Apr, 2025 14 mins read 71 views
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3 car brands taking over South Africa

Car buyers prioritise affordability over everything else, and South Africans turn to Chery, Mahindra, and Suzuki while other, more expensive brands are struggling.

According to the TransUnion Vehicle Price Index for Q4 2024, the South African automotive sector experienced a cautious recovery, influenced by improved macroeconomic factors. 

The report highlighted that interest rate cuts, lower inflation, and a stronger rand contributed to increased consumer confidence and enhanced vehicle affordability. 

However, despite these positive developments, rising costs, evolving brand preferences, and shifting financing trends continued to shape the market as affordability became the primary concern.

One of the most telling trends of this transition is the pricing disparity between new and used vehicles. 

The TransUnion report noted that new vehicle prices increased by 1.7%, driven by supply chain constraints and production costs, while used vehicle prices declined by 2.8%, indicating greater demand for affordable second-hand cars. 

The data shows South Africans increasingly prioritise affordability, with many opting for pre-owned cars over new ones.

Financing trends further highlighted this affordability-driven preference. TransUnion Africa’s Vice President of Sales, Marcia Mayaba, pointed out that financing for used vehicles outpaced new car financing at a ratio of 1.56 to 1.

Standard Bank also reported a 9.3% quarter-on-quarter increase in vehicle loan applications during Q4 2024—the highest rise in two years. 

“However, while loan applications surged, the data revealed that the majority of South Africans still preferred second-hand cars over brand-new models,” said Standard Bank Vehicle and Asset Finance head Derick De Vries.

Due to struggling household budgets, TransUnion noted that Asian automakers have thrived in South Africa.  

According to TransUnion, Mahindra, Chery, and Suzuki recorded the highest year-on-year growth in new passenger and light commercial vehicle sales, increasing by 37.4%, 23.7%, and 22%, respectively. 

The rise of Chery’s sub-brands, Omoda and JAECOO, along with the growing popularity of BAIC, has further solidified the dominance of Asian carmakers. 

In contrast, the report further highlighted that brands such as Nissan, Mercedes-Benz, Renault, and BMW experienced year-on-year declines, reflecting the shift in consumer preference toward more budget-friendly options.

This trend is more pronouned over the last decade, which shows asian brands are slowly taking over the South African market, especially Chery and Suzuki.

An analysis by BusinessTech showed that vehicles from Asia—such as Chery and Suzuki—have seen massive growth over the past decade.

In 2014, these two car brands collectively sold 7,699 units. This has increased by a whopping 887% to 76,020 in 2024.

This is primarily thanks to Sukuzi’s impressive growth, which increased sales from 6,402 in 2014 to 56,109 (776%) in 2024. While Suzuki almost hit 60,000 sales last year, Chery grew 1,435% from 1,297 to 19,911 in 2024.

This remarkable growth resulted in a notable milestone at the start of 2025. According to Naamsa, Suzuki officially surpassed the Volkswagen Group to become South Africa’s second-best-selling car brand, trailing only Toyota. 

The Suzuki Swift, in particular, set a new sales record, moving 2,628 units in a single month—surpassing its previous peak of 1,925 units in June 2022. 

This achievement even saw the Swift briefly surpass the Toyota Hilux as the country’s top-selling vehicle.

The National Automobile Dealers’ Association (NADA) told BusinessTech that this trend is due to the price-sensitivity shift in the South African market over the years.

“The South African vehicle market is increasingly price-sensitive, with affordability remaining a challenge due to high inflation, interest rates and fuel costs.

“Most buyers are now shopping in the sub-R350,000 range, where Chinese brands offer strong perceived value at an accessible price point,” said NADA.

“These vehicles provide high-quality specifications, advanced technology, and competitive pricing, making them an attractive alternative to traditional luxury brands.

 


 
BusinessTech - Malcolm Libera

BusinessTech - Malcolm Libera

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