One in five new vehicles now Chinese as sales surge by 75% year-on-year
19% of new vehicles sold are now Chinese and this figure is sure to grow with the introduction of new brands such as Lepas and iCaur.
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South Africa’s new passenger vehicle market grew by 12.6% in the first quarter of 2026, the latest statistics show, but traditional manufacturers saw very little of this growth in their own showrooms.
According to TransUnion’s Q1 2026 Mobility Insights Report, Chinese car sales grew by 75% year-on-year in the first quarter of this year, significantly outpacing the 2% growth seen by traditional OEMs.
Chinese brands now account for 19% of all new passenger and light commercial vehicles sold in South Africa, with the Chery Group now emerging as a top-three player if one combines sales of its core brand with Jetour, Omoda and Jaecoo.
The Chinese market share is surely poised to grow further, with Chery Group recently introducing the Lepas and iCaur brands, while automakers such as Geely and BYD are rapidly expanding their local model line-ups, particularly in the new energy space.
TransUnion research director Ayesha Hatea says the shift is no longer driven by entry-level pricing, as these “disruptor” brands are increasingly competing on technology, features, fuel efficiency and warranty offerings.
“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.
The TransUnion report further found that residual values are becoming an increasingly important component of vehicle affordability, particularly as finance terms are extending beyond six years for many buyers.
Buyers increasingly keen on hybrids
While internal combustion models remain by far the most popular powertrain choice in the market, there is increased interest in new energy vehicles.
The TransUnion report showed that interest in hybrid vehicles grew from 30% to 39% in the short space of time between the last quarter of 2025 and the first quarter of 2026.
Interest in plug-in hybrids and fully electric vehicles also grew, to 26% in each case.
“Hybrids are emerging as a practical transition pathway for South African consumers. They offer fuel savings and lower running costs without full dependence on charging infrastructure, which makes them relevant in a market where affordability and operating certainty remain critical,” Hatea added.
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