Chinese cars causing tremendous pain for WeBuyCars

New data from AutoTrader has revealed just how significantly Chinese vehicles are disrupting South Africa’s used car market. 

These vehicles are being offered at very attractive price points, squeezing margins for sellers on alternatives from other brands with traditional higher prices. 

In particular, Chinese brands are forcing a shift in price expectations in key SUV and crossover segments, with AutoTrader’s data showing prices moving in a downward direction. 

As a result, while the average price of a used car has risen year-on-year for each month in 2026, the segments in which Chinese cars are competing have seen their average price fall.

This is good news for consumers, but it puts financial pressure on used car marketplaces and dealers, as pricing strategies have to adjust and margins are squeezed. 

As the largest player in this section by far, the extremely well-run WeBuyCars is not immune, with it having to adjust to the rise of cheaper Chinese vehicles. 

The company has noted the rise of Chinese brands in the new car market since 2024, attributing their popularity to competitive pricing and modern technology.

In September 2024, Chinese brands held a 10% share of the new car market in South Africa. When WeBuyCars reported its 2025 financial results a year later, new sales of Chinese cars had risen by 74.4% year-on-year. 

WeBuyCars has not shied away from the impact of this rise on its business, with new Chinese vehicles competing on price with used cars in South Africa. 

This has resulted in heightened competition and put pressure on WeBuyCars’ margins, with traditional manufacturers cutting their prices to compete with Chinese brands.

The widespread cutting of new car prices pushes down the price of used cars further, with the used car market experiencing short periods of deflation in the past year.

WeBuyCars responded to the rise of Chinese vehicles and widespread price cutting by adjusting its pricing strategy, taking a hit on its margins to maintain inventory turnover and increase its market share. 

The company expects this to turn into a long-term opportunity once Chinese cars increasingly fall into the used car market.

This will enable WeBuyCars to compete on a more comparable basis with new Chinese vehicles and expand its overall pipeline of used cars. 

Chinese cars driving prices down

AutoTrader recently shared data about just how much cheaper Chinese cars are, driving down prices in the used car market. 

The company said that the pricing pressures are not across the board, with specific segments where Chinese vehicles are not direct competitors continuing to experience price increases. 

However, the market segments where Chinese brands are major players have experienced substantial pricing pressure, particularly the lucrative SUV and crossover markets.

“The data shows that average used-car prices are still higher year-on-year, but the market is becoming more competitive,” AutoTrader CEO George Mienie said. 

“What is changing is the mix of vehicles, the value buyers are responding to, and the way dealers need to position stock.”

AutoTrader’s data shows that Chinese brands are becoming a larger part of the used-car market, with significant consequences for pricing.

In several high-volume segments, Chinese models are being directly compared with established rivals on price, age, mileage, and specifications. 

This is changing how buyers assess value in the used-car market, particularly where newer Chinese models are priced below or close to comparable non-Chinese alternatives. 

This does not necessarily mean that consumers are spending less; consumer spending is holding steady while they are getting more value from higher-spec Chinese vehicles.

The Haval Jolion, for example, recorded an average used price of R302,782 in April 2026, compared with R393,328 for the Toyota Corolla Cross. 

The Chery Tiggo 4 Pro recorded an average price of R267,234 in April, compared with R317,779 for the Kia Sonet, while the Omoda C5 averaged R345,966 compared with R363,667 for the Mazda CX-30.

However, the data also shows that this is not simply a case of Chinese vehicles undercutting the used car market. 

In many cases, these vehicles are newer or have lower mileage than established rivals, meaning buyers are weighing price against age, mileage, specification, and perceived value. 

In April, the average Chinese-brand used vehicle on AutoTrader had an average registration year of 2024 and an average mileage of 28,970 km.

This is compared with an average registration year of 2020 and average mileage of 72,624 km for non-Chinese vehicles. 

Over the same month, the average Chinese-brand used vehicle price was R382,78, compared with R437,172 for non-Chinese vehicles.

This hints at the pricing pressure being introduced into the used car market by Chinese brands, as they push prices lower in the segments they compete in.

While this is good for consumers looking for used cars, it does put margin pressure on sellers as they have to react to ensure they remain competitive. 

This translates into narrower margins in the short term, but, as WeBuyCars said, this is likely to reverse back to ‘normal’ levels in the future as more Chinese cars enter the used car market.