Chinese companies are making progress in South Africa because low prices are driving up demand
Industry data released on Friday showed that Chinese automakers’ share of the South African passenger car market rose from 11.2% in 2018 to 16.8% in 2025. This was due to lower prices, more technology, and longer insurance for SUVs.
Naamsa, the trade group for the auto industry, said in its annual report on Friday that the domestic new vehicle market has entered a period of recalibration marked by affordability pressures, changing customer expectations, and tougher global competition.
The biggest change in 2025 was the “meteoric rise” of imported Chinese brands in South Africa’s light vehicle market. They were able to break into the mainstream thanks to their modern technology, low prices, and long warranties. “This is not seen as a short-term surge, but a structural reset,” Namsa said. “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.”
There were 15 Chinese brands selling new cars in South Africa in 2025, up from 8 in 2024. These included well-known brands like BYD, Chery, and GWM. More are likely to join in 2026.
In some parts of the market, brand loyalty stayed strong even though new competitors came in. With 24.8% of the market, Toyota stayed on top as the total market leader. Suzuki Auto and Volkswagen came in second and third, respectively.
MORE GOODS ARE SENT TO THE U.S.
Automotive exports were still very important to the industry, but they went down by 26% to 20.4 billion rand ($1.23 billion) in 2025. This was part of a 26.1% drop in sales to the USMCA region, which includes the US, Mexico, and Canada.
NAAMSA said the drop was caused by high U.S. tariffs on vehicles and parts that were imported last year, as well as the decision by a big producer not to export its new model to the U.S. after it came out at the end of 2024.
In 2024, 26,063 units were exported to the USMCA area. In 2025, that number dropped to 10,042 units.
Mercedes-Benz is the only U.S. car company that depends on the U.S. market a lot. The market’s future is still uncertain, and more drops are predicted in 2026 as tariffs continue to hurt sales.
India was still the biggest source by volume, bringing in 56.2% of all light vehicles. China, on the other hand, grew its share to 23.3%.
