Chinese automakers expanded their share of the South African passenger car market to 16.8% in 2025 from 11.2% a year earlier, industry data showed on Friday, as competitively priced, technology-rich sport utility vehicles and long warranties reshaped competition.
The domestic new vehicle market has entered a period of recalibration marked by affordability pressures, shifting consumer expectations and intensifying global competition, auto industry body naamsa said in its annual report on Friday.
The most dramatic shift in 2025 has been the "meteoric rise" of imported Chinese brands in South Africa's light vehicle market, offering modern technology, competitive pricing and long warranties that have helped them move into the mainstream, it added.
"This is not regarded as a short-term surge, but a structural reset, as for decades the market was shaped by badge and prestige, but it is now being redefined by price-driven consumer choices and tighter household budgets, with little brand affinity," naamsa said.
There were 15 Chinese brands operating in South Africa's new vehicle market in 2025 - including leading manufacturers like BYD (002594.SZ), Chery (9973.HK), and GWM (601633.SS) - up from eight in 2024, with more expected to enter in 2026.
Despite pressure from new entrants, brand loyalty remained resilient in parts of the market. Toyota (7203.T) retained its position as overall market leader, with a market share of 24.8%, followed by Suzuki Auto (7269.T) and Volkswagen (VOWG.DE).
EXPORTS TO THE U.S. FALL
Automotive exports remained a pillar of the industry, but exports to the United States fell by 26% to 20.4 billion rand ($1.23 billion) in 2025, contributing to a broader 26.1% drop in shipments to the U.S., Mexico and Canada (USMCA) region, the report showed.
The decline reflected steep U.S. import tariffs on vehicles and components imposed last year, as well as the decision by one major producer to no longer export its new model launched at the end of 2024 to the U.S., naamsa said.
Export volumes to the USMCA region fell to 10,042 units in 2025 from 26,063 units in 2024.
India remained the top source by volume, accounting for 56.2% of total light vehicles imported, while China increased its share to 23.3%.
($1 = 16.6012 rand)
