For the 2025 calendar year, passenger car sales alone peaked at 422,000 units which is a 20% growth on the previous year and the highest level recorded since 2014! And 2026 has started in similar fashion with over 39,000 units sold in March, an 18% increase for the same period year-on-year. What could possibly be driving this extraordinary resurgence of a vital cog in South Africa’s economy?

According to TransUnion’s Q4 2025 South Africa Industry Insights Report, the consumer credit market is moving beyond recovery into stabilisation with the vehicle finance market experiencing its fifth consecutive quarter of sustained growth.

“There’s definitely a glass half-full outlook when it comes to car ownership, despite the geopolitical chaos at the moment,” says Brandon de Kock, director of storytelling for BrandMapp. “Insights from our latest BrandMapp 2025 dataset highlight that having your own wheels really is a standout ‘emerging’ desire.

We measure a massive 31% of consumer class adults looking to buy or upgrade their cars in the coming year, ahead of house ownership or starting a business. And when you consider the ‘new family’ generation of Millennials, who need wheels more than others, that rockets up to 36%.”

So, what is really driving SA’s new car sales?

As South Africa’s most extensive survey of the consumer class, BrandMapp offers a clear view of shifting sentiment. De Kock says, “First off, we must acknowledge that South Africa is a passionate automative country – for emotional and practical reasons.

Spatial design, long distances and limited public transport make car travel a necessity for millions of South Africans. But it’s much more than that. Traditionally, our cars are an important part of our identity and the signalling of our social status.”

“There’s so much marketplace chatter that the reason for the reinvigoration of car sales is about there being so many more affordable car options in the marketplace. But that doesn’t align with the fact that the average car loan in South Africa has hiked up by R10,000 over the last year. Everyone’s talking about ‘cheap’ cars, but the entry level Chinese brands cost the same as the entry-level legacy brand.

So it’s not about pure affordability. It’s more about a shift in perception of what our cars say about ourselves and a completely different value proposition on offer by disruptive brands.”

In the past, owning a legacy car brand, displaying a prestige badge, was the priority. Today, value is a priority consideration, even if you are the wealthiest person. De Kock says, “What we can tell from the BrandMapp 2025 data is that we are not scared of spending our money, but now we want it to be evident that we are savvy – we get the most bang for our buck. That is the key.

People just don’t care about the badge on their car like they used to. We still want a car that says, ‘latest and greatest’, but that may no longer be a legacy brand. There’s a fundamental, and global, shift in how people are thinking about the ‘Made in China’ label.”

Chinese cars are gaining traction in SA – for good reasons

Whether a car is assembled in Germany or China, robots are doing the work. The difference is that many Western plants rely on robotics that are around a decade old, while Chinese facilities are built on newer systems. In addition, the Chinese manufacturers are less reliant on third-party suppliers for the bells and whistles – it’s all made in China.

De Kock says, “There are more than 9 million registered passenger cars on our roads, so even with monumental growth in new car sales, the Chinese brand footprint doesn’t yet feature on the total ownership list.

But according to available data, they currently account for between 10 and 15 percent of all new car sales and have for the past year or two. So if you add all the Chinese brands together right now, in terms of cars on the road, they would rank in the Top 10, on par with brands like Nissan and Kia at around 4%.

“Of course, it’s early days and we still have to see how these new brands will fare in terms of reputation when it comes to after-sales service and resale, but they’ve certainly arrived in style. When it comes to perception, it’s interesting that South African owners of Chinese car brands right now over index for believing that their cars are ‘family’ practical and they highlight the safety level.

But perhaps more importantly, through BrandMapp we know that 26% of South African drivers ‘love their cars’ and we can identify the brands that over index for brand love. It’s interesting that some of the Chinese brands already sit high up on the Top 20 list traditionally dominated by ‘passion brands’ like Alfa Romeo, Porsche and Mini.

Interestingly, 8% of people intending to buy or change cars next year are seriously thinking Chinese.

It’s not so much that “a change is going to come”, it has already happened.”

BrandMapp 2025 insights is available directly from the BrandMapp team at WhyFive Insights and by subscription via Telmar, Softcopy, Nielsen and Eighty20. For data access email az.oc.evifyhw@enna-eiluJ