South Africa’s new-vehicle market last year recorded its strongest level in more than a decade, with passenger-car sales reaching 422 103 units, which translates into 20.1% year-on-year growth.

According to TransUnion South Africa’s ‘Fourth Quarter 2025 Mobility Insights Report’, this number reflects a clear recovery, but with the underlying patterns revealing a market increasingly shaped by value and intensifying competition.

“This recovery is real, but it is far from uniform,” says TransUnion Africa research and consulting senior director Ayesha Hatea.

“What we are seeing is not a return to old buying patterns, but a more deliberate, affordability-driven market where consumers are weighing value, monthly repayments and long-term ownership costs far more carefully.”

One of the standout trends of 2025 has been the continued rise of Chinese manufacturers, says the information and insights company.

Chinese brands expanded at nearly nine times the pace of the overall market, lifting their share to more than 17% of total new-passenger-vehicle sales, up from less than 5% just four years ago.

Aggressive pricing of enhanced specifications, extended warranties and growing consumer trust have also fuelled intensifying competitive pressure across all segments of the market.

“This is no longer a short-term disruption,” says Hatea. “Value brands are now firmly embedded in South Africa’s automotive ecosystem, and their success highlights how decisively affordability and perceived value are influencing purchasing decisions.”

Back To New
TransUnion’s newest report notes that improved affordability conditions in the fourth quarter of last year shifted demand back toward new vehicles.

New-vehicle registrations rose 30.1% year-on-year, compared with 0.7% growth in used-vehicle registrations, narrowing the gap between the two segments.

The shift was supported by record-low new-vehicle inflation of 1.2%, alongside 1.9% deflation in used-vehicle prices, making monthly repayments on new vehicles increasingly competitive.

“Affordability remains the single most powerful lever in sustaining demand,” says Hatea.

“The centre of gravity is shifting,” she adds. “Growth is increasingly coming from younger, more price-sensitive buyers, rather than the top end of the market.”

Electrified mobility also continued to gain traction in 2025, with new-energy vehicle (NEV) sales reaching roughly 16 700 units, representing 4% of new-passenger-vehicle sales, up from 0.3% in 2021.

Growth remains firmly hybrid-led, with traditional hybrids representing nearly three-quarters of NEV sales, reflecting consumer preference for lower upfront costs and limited reliance on charging infrastructure.

Battery-electric vehicles remain concentrated among higher-income buyers.

“South Africa’s electrification journey is progressing, but it is pragmatic rather than aggressive,” says Hatea.

As the industry looks ahead, TransUnion’s data suggests a market that has stabilised, but one that also remains finely balanced.

“The next phase of growth will be incremental and affordability-driven,” notes Hatea.

“Manufacturers, dealers and financiers that align closely with how South Africans are actually buying, and not how they bought a decade ago, will be best positioned to compete.”