Due to economic headwinds over the past decade, prospective vehicle owners have turned away from luxury cars to more affordable alternatives that offer better value for money, such as cars from Asia, according to a report in BusinessTech.

Sales numbers over the last ten years show a declining demand for luxury cars in favour of cheaper alternatives in South Africa. In 2014, luxury brands such as Audi, BMW, Mini, and Mercedes-Benz collectively sold around 74 015 vehicles in South Africa. As of the end of 2024, this number had dropped to 23 881. This translates to a 68% drop in sales—highlighting the stagging amount of South Africans who no longer see these vehicles as an option.

The biggest loser was Mercedes-Benz, dropping 82% to 5 048 sold units in 2024 from 28 993. This was followed by Audi (-70%) and then BMW and Mini (-50%).

Last year Nedbank’s vehicle and asset finance division, MFC, said the rise of Chinese car brands is significantly shifting South Africa’s automotive market. The influx of these brands is reshaping the vehicle industry, offering consumers more choices and competitive pricing. In particular, MFC noted the rise of Chinese brands such as Chery, Haval, GWM, and BYD in South Africa.

Vehicles from Asia, such as Chery, Haval, and Suzuki, have seen massive growth over the same period. In 2014, these three car brands collectively sold 8 127. This has increased by a whopping 1 000% to 89 416 in 2024. This is primarily thanks to Sukuzi’s impressive growth, which increased sales from 6 402 in 2014 to 56 109 (776%) in 2024.

While Suzuki almost hit 60 000 sales last year, Chery grew 1 435% from 1 297 to 19 911 in 2024, and Haval grew 3 029% from 428 to 13 396 in 2024.

The National Automobile Dealers’ Association (NADA) told BusinessTech that this trend is due to the price-sensitivity shift in the South African market over the years.

“The South African vehicle market is increasingly price-sensitive, with affordability remaining a challenge due to high inflation, interest rates and fuel costs. Most buyers are now shopping in the sub R350 000 range, where Chinese brands offer strong perceived value at an accessible price point,” said NADA.

“These vehicles provide high-quality specifications, advanced technology, and competitive pricing, making them an attractive alternative to traditional luxury brands. Dealers welcome these options as they cater to a broader customer base.”

“However, over the medium to long term, factors such as running costs, reliability, parts availability, crash panel replacement, and resale value will ultimately determine which brands succeed and which fade from the market,” the association added.