The New Face of South Africa’s Auto Market
For decades, the South African car market has been dominated by familiar names – Toyota, Volkswagen, Ford, Nissan. These brands earned their stripes through reliability, brand heritage, and extensive dealer networks. But the first quarter of 2025 has made one thing clear: the new battleground isn’t brand loyalty; it’s affordability, innovation, and access.
A Marketing Powered by Affordability
The Q1 2025 TransUnion Mobility Insights Report highlights one of the biggest quarterly jumps in automotive sales in nearly a decade. According to NAAMSA (National Association of Automobile Manufacturers of South Africa), passenger car sales rose by 20.6% year-on-year, reaching 102,268 units, the highest figure in more than nine years.
Several macroeconomic factors have supported this growth: lower inflation, anticipated interest rate cuts, improved real wages, and access to retirement funds through the new two-pot system.
But what’s particularly telling is where the growth came from. Chinese brands experienced a staggering 64.6% year-on-year growth across both passenger and light commercial vehicles. As household budgets remain under pressure, South African’s are increasingly turning to these brands, not just for affordability, but for value, and these brands are offering longer warranties, impressive features, and striking designs.
“We’re witnessing a permanent shift in consumer behavior,” says Dion de Graaff, CEO of AutoZone. “Brand heritage is no longer enough. Today’s buyer wants flexibility, affordability, and modern technology, and Chinese brands are delivering on all three fronts.”
The Impact on the Second-Hand Market
This pivot is already having knock-on effects. While new car registrations are up, the used market is stagnating. TransUnion reports that used passenger vehicle registrations grew just 0.9% year-on-year in Q1 2025 – a sharp contrast to new vehicle momentum.
More notably, the NaTIS data shows that new passenger vehicle registrations rose by 19.1% in the same period, particularly in the Free State, Gauteng, and Eastern Cape. The clear implication is that consumers are opting for new, affordable models over pre-owned vehicles, fundamentally disrupting resale value expectations and shifting long-held consumer habits.
“Consumers who previously defaulted to second-hand cars are now driving new vehicles off showroom floors, often for similar monthly repayments,” says de Graaff. “This is a turning point for the automotive industry as a whole, and the aftermarket in particular must evolve to meet the demands of a rapidly changing vehicle landscape.”
Aftermarket Urgency: Prepare or Be Left Behind
In response to this shift, AutoZone is actively investing in diversified sourcing and category expansion to support the rising wave of Chinese-manufactured vehicles.
“We’ve introduced new supply chain partnerships, and are adding parts for fast-growing Chinese brands,” says Michael Da Paixao, Executive of Merchandise and Marketing. “The aftermarket needs to reflect the current car parc. If we don’t support these brands, we’re not supporting South African motorists.”
This is especially critical as OEM (Original Equipment Manufacturer) warranties expire and servicing needs shift to the independent aftermarket. In just a few years, a large proportion of the newer models of Chery, Haval, JAC and OMODA vehicles will exit their service plans – and the aftermarket must be ready.
The Rise of Financial Innovation and New Ownership Norms
TransUnion’s report also notes the rise of innovative finance models, including balloon payments, extended terms, and buyback schemes, which is driving first-time ownership among younger, digitally savvy buyers.
“Ownership is no longer just a functional transaction,” says de Graaff. “It’s an expression of mobility freedom, and buyers are making smarter, more pragmatic choices. The aftermarket must honor that with equally smart, accessible support.”
AutoZone’s Role in a Changing Automotive Landscape
We believe this is not a threat to the industry, but an opportunity. With over 200 branches countrywide, we’re well-positioned to lead the aftermarket through this transition. Our role is not tied to any badge or brand. It’s tied to a promise: to keep South African’s moving, no matter what vehicle they drive.
As Chinese brands continue to scale, and consumer values continue to evolve, we remain laser-focused on accessibility, quality, and preparedness.
“At AutoZone, we’re not just reacting to change. We’re building for it,” de Graaff concludes. “Because the future isn’t coming. It’s already here.”
As published in automobil July 2025 edition.
