It’s no secret that cars are astronomically expensive in South Africa, as roughly 75% of all models on sale now cost over half a million rand.
There are several reasons for these sky-high asking rates, from engine improvements to new technology and safety features, but as is frequently the case, the simplest answer comes down to inflation.
Price creep in the auto sector
Inflation affects just about every aspect of our lives, from the cost of food to the petrol that we put in our tanks.
The average rate of inflation in South Africa in 2024 was around 4.6%, which naturally has big consequences for anyone planning to make an expensive purchase.
While a 5% uptick in the cost of bread will add a rand or two to the cost of your groceries, it can easily mean another month’s salary gets tacked onto the price of the new car you’ve been saving for all this time, making it feel like it’s impossible to close the gap.
To get a better sense of how car prices are shooting up in South Africa, TopAuto looked at the current rates for a selection of popular models released in the last few years.
| Model | Price at launch | Current price | Price difference |
|---|---|---|---|
| Ford Ranger 2.0 BiT XLT 4×4 | R782,100 (Dec 2022) | R854,500 | R72,400 |
| Suzuki Fronx 1.5 GL | R279,900 (Aug 2023) | R298,900 | R19,000 |
| Toyota Corolla Cross 1.8 Xi | R349,900 (Nov 2021) | R408,400 | R58,500 |
| VW Polo 1.0 TSI | R311,800 (Feb 2022) | R366,500 | R54,700 |
It’s important to clarify that none of the cars listed above have been updated or have entered a new generation since they were launched in South Africa.
In other words, the price jumps are not because of new features or other improvements, but are purely the result of inflation.
Even the Suzuki Fronx, which is the most budget-oriented vehicle of the group, has gone up by R19,000 in a little over a year, bearing in mind that the average formal sector salary in South Africa is around R27,000 per month before tax.
The VW Polo, meanwhile, reveals just how much inflation can add to the price of a vehicle, as the R54,700 hike represents 17% of what the hatchback cost at the start of 2022. It’s even built in South Africa, so it could’ve been worse had it been imported.
A few carmakers have tried to get around high price tags by introducing new, scaled-down versions of their existing models, such as the Kia Sonet LS or the Chery Tiggo 4 Pro LiT, but these are ultimately temporary measures since inflation affects them like any other car.
Hyundai took a different approach this year by slashing the price of several vehicles to maintain their appeal in these tough financial times, and VW elected not to raise the going rate for the Polo Vivo when it was updated this year for a similar reason.
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