Chinese carmakers tighten grip with nearly 20 percent share on South Africa’s vehicle market

<p>The report comes as South Africa’s passenger vehicle market maintained momentum despite mounting economic pressures. Passenger vehicle sales reached 114,517 units in the first quarter of 2026, slightly higher than the 114,246 units recorded in the final quarter of 2025.</p>

<p> Year-on-year growth moderated to 12.6%, but demand remained resilient despite rising fuel costs, higher borrowing costs and increasing affordability concerns.</p>

<p>TransUnion director of research and consulting, Ayesha Hatea, said Chinese manufacturers have evolved beyond their reputation as budget alternatives.</p>

<p>“Chinese brands have moved beyond the role of price disruptors. They are becoming structural industry players, influencing dealer networks, financing ecosystems, ownership perceptions, and the wider discussion around localisation and industrial competitiveness,” Hatea said.</p>

<p>As affordability, technology and value increasingly influence purchasing decisions, Chinese manufacturers appear well-positioned to strengthen their foothold and challenge established industry leaders in the years ahead.</p>

<p>The report found that the success of Chinese brands is no longer being driven solely by lower prices. Instead, consumers are increasingly attracted by advanced technology, extensive features, fuel efficiency, longer warranties and stronger value propositions.</p>

<p>Among the standout performers is Chery Group, which includes the Chery, Jetour, Omoda and Jaecoo brands. Together, the group recorded combined sales of 16,094 units during the first quarter, positioning it among South Africa’s top three automotive players.</p>

<p>The rapid rise of Chinese manufacturers comes at a time when affordability is becoming a central concern for vehicle buyers. TransUnion noted that consumers are paying closer attention to the total cost of ownership, including fuel, finance repayments, insurance, servicing and future resale values.</p>

<p>“Vehicle demand has not collapsed, but the market is moving into a more selective phase,” Hatea said.</p>

<p> “Consumers are still buying vehicles, but affordability is no longer only about the purchase price. Fuel costs, financing costs, insurance, servicing, and total cost of ownership are becoming central to the decision.”</p>

<p>The report highlights that residual values are becoming increasingly important as buyers take on longer finance terms, often extending beyond six years. Brands that retain their value more effectively are likely to gain a competitive edge as consumers seek to minimise the risk of negative equity when trading in or refinancing vehicles.</p>

<p>The growing popularity of Chinese brands has coincided with sustained strength in the new vehicle market. New vehicle registrations increased by 11.6% year-on-year in the first quarter, marking a sixth consecutive quarter of double-digit growth. By comparison, used vehicle registrations rose by only 2.6%.</p>

<p>The share of new vehicles in total registrations increased to 31%, up from 23% in the previous quarter, supported by favourable pricing dynamics. New vehicle inflation slowed to just 0.8%, while used vehicle prices remained in deflation territory at minus 1.3%.</p>

<p>Dealer confidence also remains robust. New vehicle dealer confidence climbed to 67 in the first quarter, the highest level recorded in 13 years, reflecting optimism about continued demand despite economic uncertainty.</p>

<p><strong>BUSINESS REPORT</strong></p>

Guardian Sport · Jun 24

Guardian Sport · Jun 24

234 stories