South Africa’s car market in 2025 is thriving, driven by economic improvements, changing consumer preferences, and a growing interest in eco-friendly options. Here’s what you need to know:
- Used Cars Dominate: With a 14.9% year-over-year growth in May 2025, used cars remain the top choice for affordability and practicality. SUVs and sedans are especially popular.
- New Car Sales Surge: Passenger car sales rose 25.3% in March 2025, with brands like Toyota and Suzuki leading the pack. Budget-friendly and fuel-efficient models are in high demand.
- Electric and Hybrid Growth: Sales of electric and hybrid vehicles have doubled since 2023, fueled by Chinese automakers offering affordable options under $22,500.
- Top Models: The Toyota Hilux, Ford Ranger, Suzuki Swift, and Toyota Corolla Cross are among the best-sellers. Buyers prioritize reliability and value retention.
- Economic Boost: Lower inflation (2.8% in May 2025) and reduced interest rates have increased consumer confidence, but high fuel prices and import duties remain challenges.
Key takeaway: South Africans are balancing affordability with modern features, leaning toward used cars and fuel-efficient or hybrid models, while exploring eco-friendly options despite infrastructure hurdles.
Popular Vehicle Types and What Buyers Want
Used Cars Lead the Market
In South Africa, used vehicles continue to dominate the automotive market, showcasing a shift in consumer priorities. 31,741 used vehicles were sold in May 2025 alone, reflecting year-over-year growth of 14.9% and a monthly increase of 11.1%. These sales generated a total value of $765 million, a 21.1% jump compared to May 2024.
Used car sales consistently outpace new passenger car sales. With an average price of $24,000 in May 2025, these vehicles hit a sweet spot for affordability, making car ownership more accessible for many South Africans.
Among the most popular choices in the used market are SUVs and sedans. SUVs are gaining traction thanks to their versatility, making them a great fit for South Africa’s varied road conditions and family-oriented buyers. Sedans, on the other hand, remain a top pick for first-time buyers due to their balance of cost and practicality.
George Mienie, CEO of AutoTrader, sheds light on the enduring appeal of certain models:
"What we’re seeing in the used car market is a continuation of long-standing consumer confidence in familiar nameplates. Vehicles like the Ranger, Polo Vivo, and Hilux have consistently performed well over the years – and in today’s climate, that track record matters more than ever. These models offer a combination of reliability, value retention, and nationwide support, making them smart, reassuring choices for buyers looking for stability and long-term value."
While used cars remain a cornerstone of the market, interest in alternative energy vehicles is growing rapidly.
Electric and Hybrid Vehicle Growth
The market for electric vehicles (EVs) and charging infrastructure is expanding quickly, reaching $471.3 million in 2025 – a 26.3% increase over the previous year. This growth follows an impressive 33.5% annual growth rate from 2020 to 2024.
Chinese automakers are playing a key role in this shift. Nearly half of the 14 Chinese car brands active in South Africa entered the market within the past year, focusing on affordable plug-in hybrids and EVs priced under $22,500. This strategy is making eco-friendly options more attainable for South African buyers.
Sales data highlights this growing interest. From 2023 to 2024, sales of new energy vehicles – including traditional hybrids, plug-in hybrids, and EVs – more than doubled, now making up three percent of total new vehicle sales.
Industry leaders are optimistic about the potential for renewable energy vehicles in the region. Steve Chang, general manager of BYD Auto South Africa, shares his perspective:
"I think South Africa and the rest of Africa have a very big opportunity to what I call leapfrog from ICE into renewable energy (cars). Africa is a very big market."
However, the adoption of EVs isn’t uniform across all types. Hans Greyling, general manager of Omoda & Jaecoo, notes:
"Battery electric vehicles have not really taken off in South Africa. We’ve gone the route of looking more towards traditional hybrids or plug-in hybrids."
New Car Sales Patterns
New car sales are also reflecting evolving consumer preferences. In March 2025, passenger car sales reached 33,447 units, a 25.3% increase compared to March 2024. Total vehicle sales for the month climbed to 49,493 units, marking a 12.5% overall rise.
The rental car market is a significant driver of new vehicle sales, accounting for 19% of new passenger car purchases in January 2025. This segment provides stability for manufacturers and dealers, offering consistent bulk sales even during periods of fluctuating demand.
Technological features are becoming a major factor for buyers, especially younger consumers who prioritize advanced driver-assistance systems and connectivity features.
Brandon Cohen, National Chairperson of the National Automobile Dealers Association (NADA), highlights the resilience of the market:
"The resilience in new vehicle sales is evident, despite ongoing financial constraints for consumers."
Across all segments, there is a growing preference for fuel-efficient and eco-friendly vehicles. This shift reflects both environmental awareness and a practical response to rising fuel costs, as buyers increasingly weigh long-term operating expenses alongside purchase prices.
Car Trends 2025 | Real Torque | Investec
Top Car Brands and Models in 2025
Shifts in consumer preferences and economic conditions are reshaping the automotive market, with certain brands and models standing out as clear favorites.
Market-Leading Brands
In South Africa, the automotive market is seeing a notable shift. Asian brands are gaining traction, while luxury car manufacturers face declining sales. Chinese automakers, for instance, have grown their market share from 9% in 2021 to 12% by early 2025, reflecting a remarkable 64.6% year-over-year growth in new passenger and light commercial vehicle sales. Suzuki also reported a strong 19.8% growth in Q1 2025, and Mahindra from India recorded an impressive 71.8% increase during the same timeframe.
Economic pressures, including rising inflation and stagnant wages, are steering buyers toward budget-friendly options. Brands like Chery and Haval are thriving by offering feature-packed vehicles at competitive prices. Hyundai has further strengthened its reputation by providing extended warranties, boosting consumer confidence. Meanwhile, luxury brands such as BMW and Mercedes-Benz have collectively lost around 50,000 units annually over the last decade. These trends provide a backdrop for the standout models of 2025.
Best-Selling Car Models
In May 2025, the Toyota Hilux maintained its dominance in the bakkie segment, selling 2,548 units. The Ford Ranger followed closely with 2,147 units, highlighting their dual appeal for work and family needs. Among passenger cars, the Suzuki Swift secured third place with 1,842 units sold, while the Toyota Corolla Cross attracted compact SUV buyers with 1,629 units sold.
| Rank | Model | May 2025 Sales | Starting Price |
|---|---|---|---|
| 1 | Toyota Hilux | 2,548 | $24,113 |
| 2 | Ford Ranger | 2,147 | $38,267 |
| 3 | Suzuki Swift | 1,842 | $15,000 |
| 4 | Toyota Corolla Cross | 1,629 | $27,653 |
| 5 | Volkswagen Polo Vivo | 1,543 | $18,127 |
These figures reflect a growing preference for practical and affordable vehicles. As Lebo Gaoaketse, Head of Marketing and Communication at WesBank, explains:
"The market also appears to be correcting itself, balancing affordability with demand as consumers become more realistic about their purchase decisions".
Chinese brands are also leaving their mark. The Chery Tiggo 4 Pro claimed the eighth spot with 1,255 units sold at a starting price of $17,993, while the Haval Jolion rounded out the top ten with 1,113 units sold, starting at $23,063.
Brand Sales Performance
The automotive sector saw significant growth in May 2025, with 45,308 new vehicles sold – a 22% increase compared to the previous year. This surge was fueled by a 30% rise in passenger car sales and a 5.8% uptick in commercial and bakkie segments. Notably, the average deal size for car purchases dropped by 8.6% year-over-year, signaling a shift toward smaller, more affordable vehicles. Competitive pricing from Chinese entrants has played a major role in this trend.
Improved consumer confidence, spurred by interest rate cuts and geopolitical shifts, also contributed to the 22% growth in retail new vehicle sales in May. Faan van der Walt, CEO of WeBuyCars, observed:
"The Asian affordable vehicles have definitely impacted the market, but we see this primarily affecting premium brand new car sales and a challenge to the traditional players".
sbb-itb-09752ea
What Drives Car Buying Decisions
In South Africa, car buyers are increasingly prioritizing affordability, flexibility, and practicality. These shifting preferences reflect broader market trends that emphasize value and functionality, particularly as seen throughout 2025.
Cost and Financing Options
Affordability remains a key factor in car-buying decisions. South Africans now hold onto their vehicles for six to eight years, compared to five years in the past. Financing trends are also evolving – only 39% of insured vehicle owners financed their cars in early 2025, a drop from 44% in 2020. Interestingly, new vehicle sales are on the rise, with passenger car sales hitting a multi-year high of 102,268 units in the first quarter of 2025.
Lee Naik, CEO of TransUnion Africa, sheds light on this trend:
"The definition of value is changing. It’s no longer just about the price tag, it’s about financing flexibility, long-term ownership costs, and trust in the product. That’s what’s driving consumer decisions today."
Consumers are also leaning toward smaller, more cost-effective models, as reflected in the 8.6% year-on-year drop in average deal size. Budget-friendly cars like the Suzuki S-Presso (starting at $10,993) and Suzuki Celerio (starting at $12,073) are growing in popularity. Experts recommend that total vehicle expenses – including insurance, maintenance, and fuel – should not exceed 25% of monthly net income, a guideline that becomes even more critical as manufacturing and import costs rise.
These financial shifts are reshaping buyer preferences across all aspects of vehicle ownership.
Changing Consumer Needs
Social media has become a significant influence on how South Africans research and choose vehicles. With over 3.5 hours spent daily on platforms like TikTok, Instagram, and YouTube, 76% of users now rely on social media for product research. This trend is particularly strong among Generation Z, whose vehicle finance volumes have surged by 27.9% year-on-year. This younger demographic is also driving early interest in emerging technologies, such as electric vehicles (EVs).
Beyond digital trends, buyers are looking for vehicles that can handle multiple roles. The increasing popularity of SUVs and pickup trucks reflects this demand for versatility, with these vehicles serving as family cars, work vehicles, and even recreational options.
Environmental concerns are also influencing decisions. While affordability remains the top priority, interest in electric and hybrid vehicles is steadily growing. EVs still represent just 1.2% of new vehicle sales, but year-on-year sales have increased by over 80% between 2023 and 2025.
Market Challenges
Power outages and infrastructure issues pose unique challenges, particularly for EV adoption. Despite the presence of over 500 public charging stations across urban areas and highways, load-shedding continues to deter some buyers. However, solar-powered charging solutions are emerging as a potential workaround.
High import duties also create barriers. Electric vehicles face a 25% import duty compared to 18% for traditional internal combustion engine vehicles. This policy significantly impacts affordability and slows the adoption of newer technologies.
Insurance costs further complicate the picture. According to TransUnion’s 2024 Insurance Survey, 25% of vehicle users reported driving without insurance in the past six months, highlighting the financial strain many face.
These challenges have created a more cautious and pragmatic market. As Lebo Gaoaketse from WesBank explains:
"The market also appears to be correcting itself, balancing affordability with demand as consumers become more realistic about their purchase decisions."
New vs Used Car Market Performance
Examining the performance of new versus used vehicles offers a deeper understanding of buyer behavior in South Africa’s automotive market. Both segments are growing steadily, though each faces its own set of challenges shaped by economic pressures and shifting consumer priorities.
Sales Numbers and Price Trends
New vehicle sales saw a notable increase of 22.0% in May 2025, reaching 45,308 units. For the first half of 2025, projections suggest new vehicle retail sales will hit 6,674,800 units – a 7.5% rise compared to the same period in 2024.
On the other hand, used car sales generated $765 million in May 2025, reflecting a 21.1% growth compared to the previous year. Back in March 2025, the total value of used vehicles sold was $700 million, up 10.9% from March 2024. These figures highlight the growing appeal of the used car market, especially as affordability becomes a key factor for many buyers.
The average selling price for a used car climbed to $24,000 in May 2025, while new car prices also rose due to increased manufacturing costs and import duties. This widening price gap underscores the distinct financial considerations driving each market segment.
| Vehicle Category | May 2025 Sales | May 2024 Sales | Year-on-Year Growth |
|---|---|---|---|
| Passenger cars | 31,741 | 24,419 | 30.0% |
| Light commercial vehicles | 10,938 | 10,337 | 5.8% |
| Medium commercial vehicles | 660 | 538 | 22.7% |
| Heavy commercial vehicles | 556 | 416 | 33.7% |
Different Types of Car Buyers
The profiles of new and used car buyers reveal distinct preferences and priorities. Buyers in the new car market are often drawn to incentives from manufacturers and the affordability of Chinese-made vehicles packed with modern features. For these consumers, factory warranties and advanced safety systems are major selling points.
Conversely, used car buyers are more focused on practicality and cost-effectiveness. With rising production costs and supply chain challenges limiting new vehicle availability, used cars offer a reliable and budget-friendly option. These buyers prioritize proven reliability and affordability, often seeking vehicles with modern safety features but at a lower price point.
As Lee Naik, CEO of TransUnion Africa, observes:
"South African consumers are returning to the vehicle market with a clear focus on value and flexibility"
How Both Markets Handle Challenges
New and used car dealers are navigating their own sets of challenges, each employing different strategies to address buyer concerns. New car dealers are benefiting from lower interest rates and an expanded range of entry-level models, making financing more accessible. Additionally, manufacturers are offering incentives to stabilize pricing amid supply chain disruptions.
Used car dealers, meanwhile, are responding to economic pressures like inflation and a weaker rand, which have made new cars less attainable for many buyers. They’re adapting by offering fuel-efficient and hybrid models, which align with consumer demand for lower running costs. Interestingly, buyers are now keeping their vehicles longer – six to eight years on average – compared to the previous norm of five years.
Mikel Mabasa, CEO of naamsa, aptly sums up the current landscape:
"The automotive sector finds itself once again at the coalface of global economic shifts"
Both markets are also feeling the effects of the growing interest in electric vehicles (EVs). While EVs account for only 1.2% of new car sales, the segment has seen an impressive 80% year-on-year growth between 2023 and 2025. Together, the new and used car markets form a dynamic ecosystem, catering to a wide range of consumer needs while adapting to economic and technological changes.
Key Takeaways from 2025 Car Market Trends
Here’s a breakdown of the major trends shaping the South African car market in 2025, along with practical advice for buyers navigating this evolving landscape.
Main Market Trends
The South African automotive market in 2025 is marked by several noteworthy shifts that are influencing consumer behavior:
- Used Cars Stay Strong: The demand for used vehicles continues to grow, reflecting a robust and stable market segment.
- Digital Research on the Rise: A staggering 76% of buyers now turn to social media platforms to research vehicles before making a purchase.
- Electric Vehicles (EVs) Gaining Ground: Though still a small portion of the market, EVs are making significant strides. They now represent 1.2% of new car sales, a sharp increase from 0.4% in 2022. Between 2023 and 2025, EV sales experienced over 80% year-on-year growth. The broader category of new energy vehicles also saw notable growth, doubling from 2023 to 2024 to account for 3% of new vehicle sales .
- Brand Loyalty Remains Strong: Trust in established brands continues to influence purchasing decisions. The Ford Ranger holds its spot as South Africa’s most popular used vehicle, while the Polo Vivo 1.4 achieved a milestone in May 2025, with 1,005 units sold.
- Established Models Lead the Way: Consumers are drawn to the reliability, value retention, and widespread support offered by well-known models, making them practical choices for long-term ownership.
Tips for Car Buyers
As the market evolves, here are some practical tips to help you make informed decisions when buying a car in 2025:
- Think Beyond the Price Tag: Value isn’t just about the upfront cost. Consider financing options, long-term ownership expenses, and the reliability of the brand.
- Leverage Online Tools: Use online resources and price comparison platforms to research thoroughly before making a purchase .
- Explore Financing Options: With lower interest rates available, creative financing solutions can help you stretch your budget and increase your purchasing power.
- Prioritize Fuel Efficiency: With the growing shift toward economical vehicles, choosing a fuel-efficient car can save you money in the long run .
- Consider Certified Pre-Owned Vehicles: These offer a middle ground, combining the affordability of used cars with the peace of mind that comes with certification and warranties .
FAQs
What is driving the rise in electric and hybrid vehicle sales in South Africa, despite challenges with infrastructure?
The rising interest in electric and hybrid vehicles in South Africa can be traced to a mix of technological progress, government support, and changing consumer priorities. Improved technology has made these cars more efficient and accessible, while incentives like tax breaks and rebates from the government are nudging more people toward these options. On top of that, there’s a clear move toward eco-conscious and greener transportation choices.
Of course, challenges remain – like the limited availability of charging stations and concerns about the reliability of the electrical grid. Still, many buyers are drawn to the potential for long-term savings on fuel and the opportunity to lessen their environmental footprint. With more hybrid and electric models entering the market, this sector is seeing notable growth.
How are inflation and interest rates affecting car purchases in South Africa in 2025?
Economic factors are having a noticeable impact on car buying trends in South Africa in 2025. With inflation dropping to about 2.8%, consumers are feeling more confident, which is motivating more people to think about purchasing vehicles. Lower inflation translates to greater spending power, making it easier for buyers to afford their desired cars.
On top of that, the South African Reserve Bank has reduced interest rates, making car loans more accessible and affordable. This shift has sparked a rise in vehicle sales, with many buyers leaning toward larger or higher-end models. These economic shifts are creating a more favorable landscape for car buyers this year.
Why are used cars so popular in South Africa, and which models are buyers choosing the most?
Used cars continue to dominate South Africa’s 2025 car market, largely because they offer more affordable options and lower upfront costs compared to brand-new vehicles. With new car prices climbing due to hefty import duties and taxes, many buyers find used cars to be the smarter financial choice. Plus, widely available petrol models often come with the perk of reduced maintenance costs.
Among the most popular choices are hatchbacks and sedans, valued for their practicality and budget-friendly appeal. Models like the Toyota Corolla Quest, Volkswagen Polo Vivo, and Suzuki Swift are leading the pack. Meanwhile, brands such as Toyota, Volkswagen, and Ford remain favorites, thanks to their dependability and easy availability. These preferences highlight the strong demand for reliable, cost-effective vehicles in South Africa’s changing car market.
Related posts
- Factors That Influence Used Car Prices in South Africa
- Age-Based Import Taxes for Used Cars in South Africa
- Electric vs Petrol: Trends in South Africa
