The South African car market is one of the largest and most dynamic in Africa. Whether you’re a first-time buyer or looking to upgrade, understanding the unique aspects of this market is essential. From brand preferences and local production to the increasing presence of electric vehicles (EVs) and Chinese brands, here’s a comprehensive guide on what you need to know.
1. Diverse and Competitive Market
South Africa is home to a wide range of global car brands, with popular manufacturers like Toyota, Volkswagen, Ford, and Mercedes-Benz consistently ranking among the top sellers. Toyota, in particular, has dominated for years, thanks to models like the Toyota Hilux and Corolla, which are favorites for their durability and resale value.
Beyond the big names, there’s growing competition from newer players, including Chinese brands like Haval, Chery, and GWM, which have quickly gained traction by offering feature-packed vehicles at lower price points.
2. Local Manufacturing
The South African automotive industry is one of the key contributors to the economy, with local production of vehicles making up a significant portion of the market. Major brands like Toyota, Volkswagen, BMW, and Mercedes-Benz have established manufacturing plants in the country, producing not just for local consumption but also for export to markets in Europe, Asia, and other parts of Africa.
Local production offers benefits like more competitive pricing, better parts availability, and quicker service options. It’s also worth noting that locally produced cars generally enjoy better resale values due to the stronger dealer and parts networks.
3. New vs. Used Car Market
The South African market has a strong demand for both new and used cars, but buying second-hand vehicles is particularly popular, driven by the high cost of new cars and economic pressures. Consumers often look for well-maintained, reliable models with good resale value. Popular choices in the used market include the Toyota Corolla, Volkswagen Polo, and Ford Ranger.
That said, with finance options becoming more accessible, an increasing number of South Africans are choosing to buy new cars. Vehicle finance institutions and dealerships offer flexible deals, making new cars more attractive than before. In 2023, roughly 80% of all new vehicle sales were financed, reflecting the growing demand for installment-based purchases.
4. Electric Vehicles (EVs) and Hybrids: Slow but Steady Growth
The global shift towards electric mobility is slowly making its way into the South African car market. Although EV adoption is still in its infancy due to high costs, limited charging infrastructure, and load-shedding challenges, the interest in electric and hybrid vehicles is growing. Brands like BMW, Mini, and Volvo have introduced EV models in the country, while hybrids from Toyota and Lexus are gaining popularity as a bridge between traditional combustion engines and full electrification.
With government incentives for clean energy in place and the prospect of increased investment in charging infrastructure, EVs are expected to gain more traction in the coming years.
5. Chinese Cars on the Rise
Chinese car brands have taken the South African market by storm in recent years. Brands like Haval, Chery, and GWM have made significant inroads, offering budget-friendly models with premium features. For example, Haval’s SUVs, such as the Haval Jolion and H6, are some of the best-selling models in their segments, offering advanced safety tech and sleek designs at competitive prices.
Chinese brands are appealing to a younger demographic looking for value-for-money vehicles, and with improving after-sales services and dealer networks, they’re poised for further growth.
6. Impact of Currency Fluctuations
Like many other imported goods, the pricing of vehicles in South Africa is significantly impacted by the strength of the South African Rand (ZAR). When the Rand weakens against major currencies like the US Dollar or the Euro, vehicle prices tend to rise, particularly for models that are fully imported. This makes local production and sourcing more appealing, especially when prices of imported cars surge during economic downturns.
Buyers should always consider timing when purchasing a car, as currency fluctuations can have a direct impact on pricing, especially for premium and luxury brands.
7. The Bakkie Culture
One unique aspect of the South African car market is the immense popularity of bakkies (pickup trucks). The Toyota Hilux and Ford Ranger are often the best-selling vehicles in the country, prized for their versatility, durability, and ability to handle tough terrains. In both urban and rural areas, bakkies are seen as multi-functional, suitable for both personal and commercial use.
Brands like Isuzu, Nissan, and GWM are also significant players in the bakkie segment, with models that cater to a wide range of needs, from farming to long-distance travel.
8. The Importance of Resale Value
For many South African buyers, resale value is a key consideration when choosing a vehicle. Certain brands and models are known for holding their value better than others. Toyota and Volkswagen are known to have some of the best resale values, which makes them highly sought-after in the used car market. On the other hand, some lesser-known brands or newer entrants tend to depreciate more rapidly, which could be a consideration for long-term buyers.
Overview
The South African car market is a vibrant, diverse landscape that offers a wide range of options for different types of buyers. Whether you’re looking for an affordable entry-level car, a luxury SUV, or a rugged bakkie, understanding the market dynamics—from local manufacturing to emerging Chinese brands and the slow rise of EVs—can help you make an informed decision.
As the market evolves, particularly with the introduction of more electric vehicles and the growing competition from Chinese manufacturers, consumers will benefit from more choices and better value in the years ahead. Whether you’re buying new or used, it’s important to stay informed about trends, pricing, and the long-term value of the car you’re investing in.
