South Africa’s vehicle market is showing resilience, but the way consumers choose their next car is changing rapidly.
That is the key message from the Cars.co.za Industry Report 2026, launched today, 17 September 2026, at DealerCon.
The report brings together Cars.co.za site and lead data, a new consumer survey of more than 2,000 car shoppers, TransUnion’s credit and affordability insights, and analysis from Absa Vehicle and Asset Finance covering 2.56 million finance applications.
Together, the findings paint a picture of a market where demand remains strong, but affordability is increasingly influencing what consumers buy, how they research vehicles and which brands make the final shortlist.
“The 2026 report shows that South Africa’s vehicle market remains resilient, but consumer decision-making is changing,” says Alan Quinn, Chief Innovation and Product Officer at Cars.co.za.
He adds that affordability is shaping behaviour more than ever, while Chinese brands are moving firmly into the mainstream.
For dealers, he says, understanding how buyers discover, research and choose vehicles will be critical to converting demand into sustainable growth.
A Strong Market Meets a Tough Affordability Reality
There is clear evidence that South Africans still want new vehicles.
In July 2026, new passenger vehicle sales reached their highest monthly level since September 2014.
However, the appetite for vehicles is facing a growing affordability challenge.
Interest rates are at 7.0%, while financial optimism has fallen from 71% to 66%. At the same time, 53% of consumers say they have reduced discretionary spending.
The result is a market where consumers are still interested in buying vehicles, but value has become increasingly important.
That shift is reflected directly in what shoppers say they want.
Price Is Driving the Purchase
According to the new Cars.co.za Consumer Survey, 70.8% of shoppers prioritise price when choosing a vehicle.
Fuel efficiency follows at 52.5%.
The findings also highlight an important change in the buying journey.
Social media is leading vehicle discovery, helping shoppers find vehicles and brands. But once consumers have narrowed their choices, other forms of information become increasingly important.
Test drives and written reviews carry greater weight at the shortlist stage.
For manufacturers and dealers, that means getting a vehicle in front of potential buyers is only part of the journey. Consumers are also looking for information that can help them make a final decision.
Interestingly, most survey respondents say a vehicle’s country of manufacture makes no difference to them.
That finding becomes particularly significant when looking at the rapid rise of Chinese automotive brands.
Chinese Brands Move Into the Mainstream
Chinese manufacturers are no longer operating solely on the edges of South Africa’s vehicle market.
Their growth is becoming increasingly visible across the industry.
Chinese manufacturers recorded 72% year-on-year sales growth in the second quarter of 2026, compared with 3% for traditional manufacturers.
Their combined market share now stands at roughly 22%.
The shift is also evident in vehicle finance.
According to Absa’s analysis, Chinese brands account for 40% of SUV finance applications, up from 19% in 2023.
That represents a significant change in consumer consideration and purchasing behaviour.
The report identifies Chinese manufacturers as moving from challenger brands towards mainstream players across SUVs, entry-level vehicles, bakkies and new energy vehicles.
New Energy Vehicles Are Growing
South Africa’s new energy vehicle market remains relatively small, but the data shows movement.
Hybrid stock, including both new and used vehicles listed on Cars.co.za, has increased from just 0.14% of listings in 2020 to 1.74% in 2026.
The report also highlights a difference in the income profile of EV buyers.
EV buyers have a median income of R115,000, compared with R73,000 for internal-combustion-engine buyers.
BYD is also a significant player in EV finance, accounting for 61% of EV finance applications, according to Absa.
While new energy vehicles remain a niche category, their increasing presence signals another area of change within South Africa’s automotive landscape.
Bakkies Continue to Dominate the Light Commercial Market
The love affair with double-cab bakkies is also reflected in the data.
Double-cab bakkies now account for 58.49% of light commercial vehicle stock on Cars.co.za.
That is up from 48.88% in 2020.
Absa’s finance data tells a similar story, with double-cab bakkies accounting for 65% of bakkie finance applications.
However, the numbers also show that the traditional leaders are facing increased competition.
The combined finance application share of the traditional Big Four — Ford, Toyota, Nissan and Isuzu — has fallen from 84% to 75% over three years.
The report attributes much of this change to Nissan’s decline in market share.
Even Luxury Status Is Changing
The report also identifies a shift in what status means in the South African vehicle market.
German luxury brands are shedding consideration among status-conscious buyers, while America, represented by Ford, and particularly Japan, represented by Toyota, are gaining consideration share.
Two models increasingly appearing in the consideration sets of German luxury buyers are the Ford Ranger and Toyota Land Cruiser.
It points to a broader change in how consumers view status, value and the vehicles they aspire to own.
What the Numbers Mean for Dealers
For dealers, the report delivers a clear picture of a market that cannot be understood through brand loyalty alone.
Affordability is increasingly shaping buyer behaviour.
Consumers are paying close attention to price and fuel efficiency, while social media is playing a major role in vehicle discovery. Once shoppers have created a shortlist, test drives and written reviews become more important.
At the same time, Chinese manufacturers are expanding their presence across several important vehicle categories.
The opportunity for dealers, according to the report, lies in responding to these changing behaviours.
That means considering stock mix, sales conversations and marketing investment through the lens of what today’s buyers value most.
South Africa’s vehicle market may be under pressure, but the Cars.co.za Industry Report 2026 shows that consumer demand has not disappeared.
Instead, the buyer is changing — and the automotive industry is being challenged to change with them.
