Chinese cars taking over South African roads

Chinese cars are surging in popularity in South Africa, with adverts for their models on AutoTrader growing 83% year-on-year and enquiries skyrocketing 183%. 

This was revealed in AutoTrader’s Car Industry Report for 2024, which outlined significant changes in the passenger vehicle sector. 

The report showed that 2024 was a turbulent year for the South African automotive industry, shaped by various external factors.  

Shifting market conditions, evolving consumer needs, and changing car shopping behaviours played a role, while interest rate fluctuations, inflation, and unstable fuel prices impacted sales and buyer sentiment.

South African motorists changed their car-buying priorities significantly to focus on efficiency, value for money, and sustainability.

This resulted in a growing buying-down trend, where consumers did not upgrade their vehicles and chose to purchase entry-level alternatives or second-hand cars. 

“The automotive landscape in South Africa is evolving at an unprecedented pace, shaped by shifting consumer priorities and external economic factors,” said AutoTrader CEO George Mienie.

“While affordability and value for money have always been key considerations, we’re now seeing a stronger emphasis on efficiency and sustainability influencing buying decisions.” 

The rapid rise of Chinese brands reflects this trend, offering well-equipped vehicles at competitive prices.

Chinese brands have grown significantly in South Africa, challenging established European, Japanese, and Korean marques for market share. 

Overall, used car searches for Chinese vehicles increased by 112% last year, with Omoda seeing a remarkable 197% increase in consumer interest. 

While this growth comes from a smaller base, it highlights the brand’s strong upward trajectory in a highly competitive space. 

Advert views on AutoTrader for Chinese vehicles also increased by 88%, while enquiries rose by 183%, suggesting strong consumer intent. 

Again, it’s worth noting that these gains come from a relatively modest starting point, but they signal a rapidly growing interest in the segment. 

Chinese brands saw a +92% sales increase in the used car market, while used car sales decreased by -2%. 

Furthermore, the Chinese have also made inroads into the electric vehicle market, with brands like BYD breaching the top 10 used EV sales list. 

The growth of Chinese brands in South Africa’s second-hand car market also reflects their new vehicle sales. 

South Africa’s traditional automotive retail giants, Motus and CMH, have been flagging increased competition from Chinese brands. 

In particular, GWM (Haval) and Chery have seen substantial growth over the past decade, with their sales skyrocketing since the end of the pandemic. 

These companies have leveraged the lower manufacturing cost in China to ensure their imported models are very price-competitive. 

Haval’s sales have surged from 428 vehicles in 2014 to 18,962 in 2024. It now sells over 1,500 cars a month in South Africa. 

Since re-entering the South African market in 2022, Chery’s sales have doubled from 8,013 vehicles to over 16,000. It, too, now sells over 1,500 cars a month in the country. 

The success of these two brands has resulted in other Chinese brands launching in South Africa, looking to emulate the strong growth of Chery and Haval.

“The Chinese importers mainly compete in the SUV segment with affordable models, which is a growing segment globally and in South Africa,” Naamsa’s Norman Lamprecht said. 

They are increasingly entering other market segments, launching hatchbacks and electric vehicles to complement their SUV offerings.

In its most recent results for the six months ending 31 December 2024, Motus said cheaper Asian car brands are growing rapidly in South Africa. 

The exclusive importer of Hyundai, Kia, Renault, and Mistubishi said that its brands face “strong competition from the Asian brands that are further penetrating the market, as well as consumers buying down to entry-level vehicles”.

Motus also flagged a shift in consumer preferences to pre-owned vehicles, which has impacted its performance in this segment and its sales of new cars.

Outside of the Chinese brands, Suzuki has benefitted immensely from the buying-down trend in South Africa. 

In 2014, Suzuki sold a mere 6,402 cars throughout the year. Now, it sells nearly the same number of cars in a month, with its monthly figures peaking at 6,006 cars sold in October.

The Japanese company has been able to ensure its competitiveness despite a difficult economic environment by deciding to shift its manufacturing to India. 

Suzuki identified the global shift to cheaper vehicles far earlier than its peers and began taking advantage of cheap manufacturing in India. 

It began leveraging its scale in the country to manufacture huge volumes of budget-friendly compact vehicles.

Today, as many as 14 of the 15 nameplates in Suzuki South Africa’s broader stable are imported from India.