AutoTrader data shows that online engagement continues to strengthen. In 2025, platform car-buying activity tracked consistent month-on-month growth, averaging a 19% year-on-year increase, with notable peaks through mid-year. This sustained rise points to a buyer journey that now starts (and often stays) online for longer, as consumers research, compare and shortlist before ever setting foot in a showroom.

Changing demand: SUVs and bakkies lead while traditional segments decline

That behaviour is reflected in shifting demand across vehicle types. SUVs remain the strongest performer, growing from 123,085 units sold in 2024 to 129,166 sold in 2025 (+5%), reinforcing their position as the country’s most popular body type. Double cabs have also shown steady growth (+3%), while hatchbacks and sedans continue their gradual decline. The message is clear: versatility, perceived value, and lifestyle alignment are driving and will continue to drive purchasing decisions in SA.

Car buying is evolving as expectations continue to shift, driven by how people live, research, and make decisions today. Digital tools such as virtual vehicle walkarounds, online negotiation, and home delivery have moved from novelty to norm, prompting dealerships to invest more deeply in the overall experience.

AI as a decision-support tool, not a replacement

At the same time, advances in AI are helping bring greater clarity to the process. AutoTrader Intelligence combines human insight with live market data to simplify decision-making, personalise the journey, and reduce friction for both buyers and dealers. The result is a more transparent, more intuitive car-buying experience. One that supports better decisions while retaining the trust and reassurance that come from human interaction.

Electrification shifts from concept to practical adoption

Electrification in South Africa is moving decisively from conversation to reality, following a distinctly pragmatic path. In the first half of 2025, new-energy vehicle sales on the used-car market grew by more than 80% year-on-year, a clear signal that adoption is accelerating, not stalling. Yet the pattern of growth reveals a market evolving on its own terms. Hybrids now account for more than four out of every five new-energy vehicles sold, highlighting a preference for solutions that work within today’s infrastructure and budgets.

Buyers are increasingly choosing vehicles that address real-world concerns around range, charging time, and affordability, rather than waiting for a perfect future state. At the same time, battery-electric vehicles are steadily gaining ground, with sales up 65% and pricing beginning to soften as supply and model choice expand. Together, these shifts point to a market building confidence over time. A market where electrification is becoming more accessible, more familiar, and more integrated into everyday South African life. Progress, in this context, is defined less by speed and more by sustained, practical adoption.

Localisation remains a policy and investment priority

Heading into 2026, localisation is likely to remain a policy-led priority, anchored by the South African Automotive Master Plan to 2035, which sets targets of approximately 1.4 million vehicles a year and around 60% local content by 2035, and positions the Master Plan as the foundation for post-2020 policy direction, according to the Department of Trade, Industry and Competition.

Furthermore, recent incentive measures aimed at building local capacity in new energy vehicles and associated components further support the view that localisation will remain an investment focus into 20261.

The real shift in South Africa’s automotive market isn’t just digital, it’s behavioural. Buyers want clearer information, dealers need better efficiency, and intelligence sits in the middle, helping both sides make smarter decisions. Technology works best when it supports people, rather than trying to replace them. Looking ahead to 2026, the direction is clear: data-led insight and more transparent marketplaces, along with new human-centric tools, will shape how used cars are bought and sold in South Africa.