Consumers in the country are leaning towards affordability when buying a vehicle with Chinese manufacturers continuing to gain market share.
This was according to one of South Africa's biggest automotive marketplaces, Cars.co.za, which released its industry report for 2026 on Thursday. The report comprises of extensive research and examines consumer behaviours, financial trends, and the challenges faced by both buyers and dealerships in today's economy.
Combining data from Cars.co.za's platform, a new consumer survey involving over 2 000 car shoppers, and critical financial insights from TransUnion and Absa Vehicle and Asset Finance, the report painted a multi-faceted picture of the current market landscape.
The rapid growth of Chinese brands in the South African market was one of the highlights of the report.
"Chinese manufacturers grew sales by 72% year-on-year in the second quarter of 2026, compared with 3% for traditional manufacturers. Their combined share is now roughly 22%. Chinese brands account for 40% of SUV finance applications (according to Absa), up from 19% in 2023," the Cars.co.za report found.
The company's consumer survey revealed that shoppers are prioritising price, at 70.8%, and fuel efficiency, at 52.5%, when choosing a vehicle.
Social media leads vehicle discovery, but test drives and written reviews become more important once buyers have shortlisted a vehicle, with most respondents saying a vehicle’s country of manufacture makes no difference to them.
Motus strong sales driven by Chinese vehicle brands
Earlier this month Motus Holdings said Chinese vehicle brands helped drive strong sales in South Africa, while sales of those brands rose sharply also in the UK and Australia.
Speaking during a briefing on the company’s financial results, CEO Ockert Janse van Rensburg attributed the stronger South African vehicle market partly to the growing number of Chinese brands entering the country.
“One thing that motor companies like ourselves have to be is very agile in the current environment. When times are tough, we have to get on with it, change and pivot to where the new energy needs to be directed,” he said.
This was also reflected in the Cars.co.za report with it showing the traditional status symbol is changing, with German luxury brands shedding consideration, and America (Ford) and, in particular, Japan (Toyota) gaining consideration share among status-conscious car buyers.
The Ford Ranger and Toyota Land Cruiser models increasingly feature in the consideration sets of German luxury buyers.
“The 2026 report shows that South Africa’s vehicle market remains resilient, but consumer decision-making is changing. Affordability is shaping behaviour more than ever, while Chinese brands are moving firmly into the mainstream. For dealers, understanding how buyers discover, research and choose vehicles will be critical to converting demand into sustainable growth,” said Alan Quinn, Chief Innovation and Product Officer at Cars.co.za.
South Africans look to keep costs low
It appears that South Africans, however, are turning more towards fuel-economic and energy vehicles (EVs) due to rising cost pressures faced by millions.
September saw fuel price increases come into effect across the board, with the country set for another round of higher prices at the pumps next month, due to a surge in international oil prices.
The Automotive Business Council (naamsa) said that it has seen New Energy Vehicles (NEV) adoption accelerating.
In the first seven months of 2026, 16,289 NEVs were sold, already equal to 97,5% of total 2025 NEV sales and above the 15,596 units recorded in 2024, according to naamsa's vehicle sales data released earlier this month.
The year-to-date mix comprised of 8,078 hybrids, 5,851 plug-in hybrids and 2,360 battery electric vehicles, showing that consumers are adopting multiple electrified technology pathways.
While price remains the starting point for many customers, dealers are seeing buyers pay closer attention to the total cost of vehicle ownership.
Brandon Cohen, National Chairperson of the National Automobile Dealers’ Association (NADA), said, "Customers are asking more detailed questions about fuel consumption, finance, insurance, servicing, warranties and the products available to protect their vehicles over longer ownership periods"
“Customers are increasingly asking dealers about hybrids, plug-in hybrids and battery-electric vehicles, but there is no single solution for every motorist,” Cohen said.
“The right option depends on the customer’s budget, driving patterns and access to charging infrastructure.”
The Cars.co.za industry report stated that NEVs have been gaining ground, although they remain a niche category.
"Hybrid stock (new and used) on Cars.co.za increased from 0.14% of listings in 2020 to 1.74% in 2026. EV buyers have a median income of R115,000, compared with R73,000 for internal-combustion-engine buyers. BYD accounts for 61% of EV finance applications (per Absa)," the report stated.
"Double-cab bakkies now represent 58.49% of light commercial vehicle stock, up from 48.88% in 2020, and 65% of Absa bakkie finance applications. The traditional big four, Ford, Toyota, Nissan and Isuzu, saw their combined finance application share fall from 84% to 75% over three years – largely due to Nissan’s drop in market share," the report stated.
The prevalent theme throughout the report indicates that affordability remains the primary driver of consumer behaviour, eclipsing traditional brand loyalties.
As Chinese manufacturers solidify their presence in the market, adjusting inventory and sales policies to reflect the growing demand for value-driven, fuel-efficient models will be essential for dealers aiming to harness sustainable growth.
ashley.lechman@nationalmg.co.za