South Africa’s automotive market in the third quarter posted its strongest sales in more than a decade as greater macro-economic stability, easing interest rates and a firmer rand supported renewed consumer demand, says TransUnion.

According to the information and insights company’s Third Quarter 2025 Mobility Insights Report, total new-passenger-vehicle sales reached 111 697 units – 23.4% higher year-on-year (y-o-y) – while new-vehicle inflation dropped to a record low of 1.5% (since tracking began in 2008).

All of these conditions, says TransUnion, created one of the most competitive pricing environments in recent memory.

“Affordability and choice are redefining South Africa’s automotive landscape,” says TransUnion Africa CEO Lee Naik.

“Consumers are seeking greater value and flexibility, and manufacturers that meet this demand through innovation and pricing discipline are winning the race for growth.”

Although established vehicle brands returned to positive growth in the second and third quarter of this year, the domestic market’s transformation is being led by Chinese manufacturers, as they are expanding nearly nine times faster than the overall market, with y-o-y growth of 89% in the second quarter and 88% in the third quarter.

Their combined share has quadrupled since 2021 to more than 15%, powered by competitively priced, feature-rich sports-utility vehicles and sedans that appeal to cost-conscious, yet tech-savvy buyers, explains the TransUnion report.

Top-performing value brands y-o-y included JAC (67% volume increase), GWM (54%), and Chery (35%), while BMW (27%) proved that premium marques can still thrive by combining desirability with strong product pipelines.

India’s Mahindra posted 42% growth.

“This isn’t a short-term surge, it’s a structural reset,” notes Naik.

“The success of value-driven models shows how affordability, technology and trust are now the true levers of brand growth in South Africa.”

Younger, High-Income Buyers Sustaining Demand
TransUnion’s recent Consumer Pulse Survey shows a modest easing in purchase intent, with the share of respondents likely to buy a vehicle in the next three months declining from 19% in the second quarter to 17% in the third quarter.

Purchase behaviour also remains sharply segmented across both age and income groups.

Younger consumers continue to lead intent, with 21% of Gen Z and 19% of Millennials planning to buy a vehicle in the next three months, compared with 13% of Gen X and 8% of Baby Boomers.

From an income perspective, high-income households earning R200 000 or more a month show the strongest intent at 34%, while middle- and lower-income consumers remain significantly more cautious in their purchasing outlook.

Internal-combustion engine (ICE) vehicles remain the single largest category in consumer purchase intent, accounting for 42% of consumer preference, while interest in hybrid (39%) and plug-in hybrid (24%) models is steadily increasing.

The shift toward electrification is most pronounced among Gen Z consumers, with 55% favouring hybrids and 32% considering battery-electric vehicles (BEVs).

This generational shift toward greener technology is also evident among high-income buyers, with 75% considering plug-in hybrids, driven primarily by their perceived affordability.

In contrast, preference for ICE vehicles remains largely affordability-based among lower-income segments.

Higher budgets within affluent households enable greater consideration of hybrid plug-in hybrid, and BEVs, reinforcing an emerging electrification divide, says the TransUnion report.

“The convergence of affordability, segmentation, electrification and connectivity signals a pivotal shift in the automotive industry,” notes Naik.

“The future belongs to brands and financiers that master both the value-driven present and the connected, electrified future.”