Chinese and Indian cars taking over South African roads

Indian- and Chinese-sourced vehicles now make up over half of the vehicles sold in South Africa, putting local manufacturers under pressure.

This is according to Combined Motor Holdings (CMH) CEO Jebb McIntosh, who said the days of buying an “inferior” Chinese vehicle to save a little money are over.

Now, he said, the reality is that offerings from the Chinese and Indian markets are favourably priced, with high-quality construction and superior specifications. 

McIntosh touched on the significant market share growth of these vehicles in CMH’s latest Integrated Annual Report for the 2026 financial year.

According to McIntosh, Indian-sourced vehicles now account for 39% of total sales in South Africa, while Chinese cars make up 16% of the market.

He explained that the dominant feature of South Africa’s new-vehicle market at the moment is the growing impact of these Chinese/Indian imports, and the unprotected pressure this is creating for traditional local manufacturers.

However, he said this is also coming at a time when the national new-vehicle market for passenger and light commercial vehicles recorded a 17% increase in sales in 2025.

McIntosh pointed out that this was the first time national sales had exceeded pre-Covid levels, adding that the improvement was driven by South Africa’s stronger rand and lower import prices.

While this is good news for the local new-vehicle market, he said the bulk of the increased sales came from imported vehicles, to the detriment of local manufacturers.

Within CMH, the best-selling brands in the year through February 2026 were Suzuki, Ford and the newly introduced Foton.

McIntosh pointed out that, traditionally, CMH succeeded on the back of the Nissan, Ford and Volvo brands. 

However, both Nissan and Volvo have recorded an “alarming” loss of market share over several years, he said. 

In response, CMH has had to restructure its network into multifranchise dealerships by complementing traditional brands with new era Indian/ Chinese brands.

“The new models have gained traction, with the result that Suzuki is now the group’s top seller, and Foton, Mahindra and Haval/GWM are in the top six by volume,” McIntosh said.

Coming for the used-car market

While Chinese and Indian cars are already disrupting South Africa’s new-vehicle market, McIntosh said it will be interesting to track how these vehicles fare when they eventually enter the used-car market in high volume.

For the time being, CMH subsidiary First Car Rental has been able to offload its 15- to 18-month-old units at favourable prices.

However, McIntosh said the resale value of high quantities of vehicles, which are five to six years old, has not yet been tested.

Used-vehicle companies, like WeBuyCars, are expected to benefit from these foreign vehicles entering the second-hand market in the coming years.

WeBuyCars noted in its most recent financial results that Chinese brands have negatively impacted its sales, as they offer new cars at very attractive price points that rival used-car prices.

However, AutoTrader has released data showing that while these vehicles are selling strongly on the new-car market, they are becoming increasingly popular on the used-car market.

“Chinese OEMs have learned how to narrow the gap between cost and perceived value, delivering around 80% of the consumer experience at roughly 60% of the price of traditional players,” AutoTrader CEO George Mienie said.

“By focusing on tangible performance and visible benefits rather than legacy branding, they have capitalised on a shift in consumer behaviour.”

“As buyers become more informed and discerning, brand loyalty is weakening, replaced by an expectation for high-quality products that clearly justify every rand spent.”

This shift is expected to boost the sales of companies like WeBuyCars and Weelee, despite them now facing pressure from the popularity of these vehicles in the new-car market.

WeBuyCars has acknowledged as much, saying in its latest annual results that the growing penetration of Asian brands is expected to have a positive long-term impact on the company.

“This will expand our acquisition base and opportunity set,” the company said, referring to Chinese vehicles entering the used-car market.