Chinese vehicles are causing major disruptions across South Africa’s used car market, squeezing margins for retailers whose business is primarily built on established brands.
This is according to new data from AutoTrader, which highlighted that Chinese cars are being offered at attractive price points that legacy automakers are struggling to compete with.
In many cases, the cost gap is so large that it is reshaping consumer expectations about vehicle prices, as AutoTrader’s data shows prices are moving downward.
While the average price of used cars in general has increased year-on-year for every month of 2026, segments where Chinese models are competing have seen their average prices fall.
This is a huge win for consumers, but at the same time, it is putting significant pressure on pre-owned marketplaces and dealerships, who have had to adjust their pricing strategies and margins to remain viable.
This applies to all of the industry’s biggest players, including WeBuyCars, the largest used car sales network in South Africa.
WeBuyCars first took note of the rise of Chinese brands in 2024, attributing their popularity to their competitive prices and modern technology.
In September 2024, Chinese brands held a 10% share of the new-car market in South Africa, led by Chery and Haval.
Since then, South Africa has received several new brands such as Jetour, GAC, Foton, JMC, LDV, MG, Geely, Lepas, and iCAUR, all of which are starting to win over motorists.
When WeBuyCars posted its 2025 financial results, it revealed that sales of Chinese cars had risen 74.4% year-on-year.
This has put pressure on the company’s margins, and legacy manufacturers are now cutting prices to remain competitive with Chinese vehicles.
The price reductions for new cars also mean that prices for used models are dropping even further, causing the pre-owned industry to experience multiple periods of deflation over the past year.
WeBuyCars has responded by adjusting its pricing strategy, taking a hit on margins to maintain inventory turnover while preserving its market share.
However, the company expects that this short-term pain will ultimately turn into a long-term opportunity once these new Chinese brands have been on the market long enough to start filtering down to the used market in large numbers.
Chinese cars driving affordability in South Africa
AutoTrader’s data showed that Chinese cars are driving down prices in key segments.
It noted that the downward trajectory does not apply across the board, as vehicle groups where Chinese brands are not directly competing are still seeing price increases.
However, crossovers and SUVs have seen a substantial drop in prices due to the arrival of dozens of new models from the People’s Republic.
“The data shows that average used-car prices are still higher year-on-year, but the market is becoming more competitive,” AutoTrader CEO George Mienie said.
“What is changing is the mix of vehicles, the value buyers are responding to, and the way dealers need to position stock.”
In the lucrative, high-volume SUV segment, Chinese cars are able to compete with established names on price, age, mileage, and equipment.
This is reshaping the way motorists assess value in the used car space, as Chinese models are usually priced below comparable non-Chinese alternatives.
This doesn’t necessarily mean people are spending less money, but rather that households are getting more value out of a higher-spec Chinese vehicle for a similar price.
Additionally, these models tend to be newer with a lower mileage than their rivals.
According to AutoTrader, the average Chinese used vehicle had a registration year of 2024 and an average mileage of 28,970 km.
In comparison, legacy brands had an average registration year of 2020 and a mileage of 72,624km.
Prices for Chinese cars hovered around R382,780, while traditional brands cost an average of R437,172.
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