Mercedes-Benz goes from hero to zero in South Africa
Mercedes-Benz used to be one of the most desirable luxury car brands in South Africa, with its C-Class dominating sales in this segment.
However, over the last decade, its appeal has declined, and Mercedes-Benz is now selling fewer cars than Kia, Nissan, and Foton.
To understand the history of Mercedes-Benz in South Africa, it is valuable to turn back the clock to 1954, when the first Daimler-Benz branch was opened.
There was strong demand, and in 1958, Car Distributors Assembly (CDA) began contract manufacturing for Mercedes-Benz vehicles in East London.
In 1966, Car Distributors Assembly was taken over by United Car and Diesel Distributors (UCDD). It was the sole sales company for Mercedes-Benz in South Africa.
In 1984, Daimler-Benz AG acquired a 50.1% stake in United Car and Diesel Distributors and renamed it Mercedes-Benz of South Africa (MBSA).
Today, the Mercedes-Benz East London plant is part of the global C-Class production network and produces right- and left-hand-drive vehicles for export.
Since the production launch in 2021, the current C-Class, the sixth vehicle generation of the high-volume model, has been manufactured at this plant.
Apart from its prominent presence in South Africa’s manufacturing sector, Mercedes-Benz has also been a strong performer in sales.
South African government ministers in the twentieth century were typically transported in Mercedes-Benz sedans, which became an important status symbol.
After Nelson Mandela was released from prison, he was gifted a red Mercedes-Benz S500, built by workers at Mercedes-Benz of South Africa.
During the 2000s, Mercedes-Benz S-Class and E-Class cars were the preferred choice of top government officials, tenderpreneurs, and corporate executives.
The brand’s status bolstered sales. By 2009, the Mercedes-Benz C-Class was the fifth-best-selling car in South Africa.
To put this in perspective, Mercedes-Benz sold more C-Class sedans than the Toyota Quantum, Toyota Yaris, VW Citi Golf, and BMW 3-Series.
The decline of Mercedes-Benz sales in South Africa
Mercedes-Benz experienced a significant decline in sales in South Africa over the last decade. This is seen in the sales data.
In 2014, the company sold 28,993 vehicles in South Africa. Over the last 12 months, it has sold only 5,368 passenger vehicles.
There are many reasons for this 81% decline, including the country’s struggling economy, increased competition, and a change in strategy.
As South Africa’s economy stagnated over the last 17 years, South African buyers shifted toward more affordable cars.
There was a rapid rise in the sales of cheaper Asian cars, with brands like Suzuki, Chery, Haval, and Jetour overtaking luxury German manufacturers.
Mercedes-Benz also made a strategic pivot away from focusing on volumes in lower-margin segments toward prioritising high-margin top-end luxury cars.
The price of a Mercedes-Benz A-Class starts at R815,674, while the bottom-of-the-range C-Class costs R943,506.
However, the biggest reason is that Mercedes-Benz no longer holds the same appeal in South Africa as it did twenty years ago.
For most young South Africans, BMW has become the aspirational car to buy to show that you have made it.
This shows in the sales. Over the last 12 months, BMW sold 15,040 passenger vehicles, three times as many as Mercedes-Benz.
To put this in perspective, Mercedes-Benz used to sell more cars in South Africa than BMW, driven by the popularity of its C-Class.
However, over the last twelve years, BMW sales declined by approximately 50%, significantly less than Mercedes-Benz’s 81%.
This means that BMW did a better job than Mercedes-Benz of convincing South Africans to pay extra for the quality and status associated with its vehicles.
Mercedes-Benz versus BMW sales
Mercedes-Benz and BMW sales numbers over the last 12 months
| Month | BMW | Mercedes-Benz |
| Jul-25 | 1,249 | 447 |
| Aug-25 | 1,223 | 443 |
| Sept-25 | 1,220 | 450 |
| Oct-25 | 1,306 | 476 |
| Nov-25 | 1,251 | 430 |
| Dec-25 | 843 | 414 |
| Jan-26 | 1,094 | 429 |
| Feb-26 | 1,237 | 459 |
| Mar-26 | 1,588 | 506 |
| Apr-26 | 1,366 | 432 |
| May-26 | 1,349 | 454 |
| Jun-26 | 1,314 | 428 |
| TOTAL | 15,040 | 5,368 |
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