South Africa’s used car market is demonstrating resilience amidst economic challenges, with affordability now taking precedence over traditional brand loyalty in purchasing decisions.
According to AutoTrader CEO George Mienie, South Africans continue to buy and sell vehicles because the nation’s transportation realities offer few alternatives for many.
“I’ve been in this business and industry for 24 years,” Mienie stated. “Never have I seen a falloff in the new or used car market that makes me nervous.”
He noted that South Africa’s limited public transportation network and extensive geography consistently support demand for personal vehicles.
“South Africans, fortunately or unfortunately, benefit or suffer from the lack of public transport in the country,” he remarked. “We don’t possess the rail systems and public transport infrastructure found in many of our sister countries in Europe and America.”
Mienie added, “South Africans… not only have to drive cars; we love to drive cars.”
Buyers are prioritizing value over brand prestige.
While some consumers maintain loyalty to established brands, Mienie indicated that this trend is diminishing as affordability gains greater importance.
“We are observing Chinese vehicles entering our country and the market at a pace that consumers are embracing, with sales increasing by 47% year on year.”
He stated that buyers are becoming “a lot more pragmatic” than in the past, focusing on the overall cost of vehicle ownership rather than the emblem on the car.
“Brand loyalty and loyalty to the badge are rapidly becoming a thing of the past as consumers consider the total cost of ownership above and beyond the badge on the car.”
Mienie explained that Chinese manufacturers are presenting buyers with a compelling value proposition.
“Chinese vehicles might not be at the same level as current European cars, perhaps 80% or 90% of the quality, but at 60% of the price.”
He attributed this significant pricing advantage to China’s manufacturing scale and governmental support.
“The combination of those two factors means that China can export their vehicles at a price point that others struggle to match.”
Corolla Cross, Suzuki Swift, and Ford Ranger are notable performers.
Among the market’s strongest performers, Mienie highlighted the Toyota Corolla Cross, noting its year-on-year growth of 33%.
He also described the Suzuki Swift as having become “almost a phenomenon in South Africa.”
“It has sold exceptionally well. The growth rate for the Suzuki Swift is over 30%, and it has truly become the preferred vehicle for the small car segment in South Africa.”
The Ford Ranger has also maintained a strong performance.
“The Ford Ranger has held its own in the country,” Mienie commented, adding that South Africans value vehicles capable of serving multiple purposes, from family transport to carrying goods and navigating challenging road conditions.
Popular vehicles remain desirable despite affordability pressures.
Mienie mentioned that traditionally sought-after vehicles like the VW Polo and BMW 3 Series continue to be among the most searched for on AutoTrader’s platform.
However, many buyers are ultimately opting for more budget-friendly alternatives.
“People still desire those vehicles; they simply cannot afford them at present,” he said.
He also elaborated on why certain popular used cars retain their value over extended periods.
“When a car achieves the popularity of the VW Polo and Polo Vivo over recent years, those vehicles maintain their value.”
While they still depreciate, he noted they do so at a slower rate than many competitors due to sustained demand and relatively limited supply.
The Chinese used car market is still developing.
Looking ahead, Mienie suggested that government policy could influence the pace of growth for Chinese brands.
He indicated that adjustments to import duties or incentives for electric and hybrid vehicles could reshape the market.
Without such changes, however, he anticipates the current momentum to persist.
“The one aspect that has not yet materialized is that the secondhand market for Chinese vehicles has not yet become established.”
Consequently, he stated it is too early to ascertain how these vehicles will depreciate over time.
He added that European brands could potentially regain market share if they enhance affordability, as consumer search behaviour continues to favour them.
The used car market continues its expansion.
Mienie reported that the latest figures indicate the used car market remains in positive territory.
“We have seen growth of approximately 1.1% in the past month, so it is not in negative territory.”
He explained that new and used vehicle markets have historically complemented each other, with one strengthening as the other weakens.
“But regardless, South Africans will continue to drive, buy, and sell cars.”
He affirmed that the fundamental reasons for this remain constant.
“South Africans must drive cars due to our land mass, the distances we travel, and the absence of public transport.”
