South Africa’s automotive sector is undergoing a significant shift as budget-conscious consumers increasingly favor affordable Asian brands like Chery, Mahindra, and Suzuki, while premium European marques struggle. According to TransUnion’s Q4 2024 Vehicle Price Index, new car prices rose 1.7% due to supply chain and production costs, while used vehicle prices dropped 2.8%, reflecting strong demand for cost-effective options.
Financing trends underscore this shift: used car loans outpaced new vehicle financing 1.56-to-1, and Standard Bank reported a 9.3% quarterly surge in auto loan applications—the sharpest rise in two years. However, most buyers opted for second-hand cars amid strained household budgets.
Asian brands thrived, with Mahindra, Chery, and Suzuki posting year-on-year sales growth of 37.4%, 23.7%, and 22%, respectively. Suzuki’s decade-long expansion—from 6,402 units sold in 2014 to 56,109 in 2024 (776% growth)—propelled it past Volkswagen in early 2025 to become South Africa’s second-best-selling brand behind Toyota. Its Swift model broke records with 2,628 units sold in a single month, briefly overtaking the Toyota Hilux as the top-selling vehicle.
Chery also saw explosive growth (1,435% since 2014), aided by its sub-brands Omoda and JAECOO. In contrast, Nissan, Mercedes-Benz, Renault, and BMW faced declining sales.
NADA attributes this trend to South Africa’s price-sensitive market, where most buyers target sub-R350,000 vehicles. Chinese brands, offering advanced tech and premium features at accessible prices, are now perceived as strong alternatives to traditional luxury marques. With affordability paramount amid high inflation and interest rates, Asian automakers are redefining the market’s landscape.
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