Johannesburg – Cars.co.za has launched its Industry Report at DealerCon 2026, offering insight into the forces shaping South Africa’s vehicle market.
The report combines Cars.co.za site and lead data, an exclusive new consumer survey examining the buying process of more than 2 000 car shoppers, TransUnion’s credit and affordability insights, and Absa Vehicle and Asset Finance’s analysis of 2.56 million finance applications.
“The 2026 report shows that South Africa’s vehicle market remains resilient, but consumer decision-making is changing,” said Alan Quinn, Chief Innovation and Product Officer at Cars.co.za.
“Affordability is shaping behaviour more than ever, while Chinese brands are moving firmly into the mainstream.
“For dealers, understanding how buyers discover, research and choose vehicles will be critical to converting demand into sustainable growth.”
The findings show a resilient market under pressure from affordability challenges, generational change and the rapid growth of Chinese brands.
Key Findings
July 2026 new passenger vehicle sales reached their highest monthly level since September 2014.
However, affordability is becoming a greater constraint than consumer appetite, with interest rates at 7.0%, financial optimism declining from 71% to 66%, and 53% of consumers cutting discretionary spending.
Chinese manufacturers grew sales by 72% year-on-year in the second quarter of 2026, compared with 3% for traditional manufacturers.
Their combined share is now roughly 22%.
Chinese brands account for 40% of SUV finance applications (according to Absa), up from 19% in 2023.
Looking at the new Cars.co.za Consumer Survey, shoppers are prioritising price, at 70.8%, and fuel efficiency, at 52.5%, when choosing a vehicle.
Social media leads vehicle discovery, but test drives and written reviews become more important once buyers have shortlisted a vehicle. Most respondents say a vehicle’s country of manufacture makes no difference to them.
New energy vehicles are gaining ground, although they remain a niche category. Hybrid stock (new and used) on Cars.co.za has increased from 0.14% of listings in 2020 to 1.74% in 2026.
EV buyers have a median income of R115 000, compared with R73 000 for internal-combustion-engine buyers. BYD accounts for 61% of EV finance applications (per Absa).
Double-cab bakkies now represent 58.49% of light commercial vehicle stock, up from 48.88% in 2020, and 65% of Absa bakkie finance applications.
The traditional Big Four, Ford, Toyota, Nissan and Isuzu, saw their combined finance application share fall from 84% to 75% over three years – largely due to Nissan’s drop in market share.
The report also shows that the traditional status symbol is changing, with German luxury brands shedding consideration, and America (Ford) and, in particular, Japan (Toyota) gaining consideration share among status-conscious car buyers.
The Ford Ranger and Toyota Land Cruiser models increasingly feature in the consideration sets of German luxury buyers.
What This Means for Dealers
The report’s central finding is that affordability is shaping buyer behaviour more than brand preference.
Chinese manufacturers are moving from challenger to mainstream status across SUVs, entry-level vehicles, bakkies and new energy vehicles.
Dealers who adjust their stock mix, sales conversations and marketing spend to reflect the importance of value, fuel efficiency, test drives and written reviews will be best placed to convert resilient demand into sustainable growth.
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