The Chinese carmaker winning over new buyers in South Africa

Chery is now one of the top 10 most financed vehicle brands for young motorists in South Africa.

This is according to new data from Standard Bank’s Youth Barometer report, which analyzed data from the bank’s three million personal and private banking clients between the ages of 18 and 35.

The report breaks down the purchasing habits of these individuals to highlight emerging patterns in the way young consumers are spending their money.

One of the takeaways from the report is that 18 to 35-year-olds are more pragmatic and financially responsible in their decisions than initially assumed.

This was pointed out in the data for the most-finance car brands collected by Standard Bank’s vehicle and asset finance division, which noted that younger motorists prefer to boy used cars and practical models, rather than those with a more image-conscious appeal.

In other words, younger audiences are not spending beyond their means to acquire prestige models from well-known or luxury brands.

This is significant because persons under the age of 35 account for a large portion of South Africa’s car loan market, representing 38% of all vehicle loans issued by Standard Bank.

Unlike in housing finance, where there’s sometimes some co-signing or financial assistance from parents, it is extremely rare in vehicle finance, making this the first major purchase that the individual will have to manage on their own. 

Affordability is obviously one of the primary factors that consumers in this age bracket are concerned with.

Additionally, most under-35s do not include a deposit on their car finance agreement as they lack the funds to do so.

Standard Bank noted that 65.1% of youth buyers who financed a car between January 2024 and May 2025 did not put down an initial payment.

Only 34.9% were able to make an upfront payment, illustrating that the majority of South Africa’s youth rely on full vehicle finance options.

Another important consideration is that persons in their early 20s tend to spend a far greater portion of their monthly budget on car payments relative to other banking clients.

This is because their earning potential is low while car access is considered a necessity, with many expecting their salaries to grow to provide better financial stability.

The average instalment-to-income ratio for 18 to 35-year-olds is 16.7%, compared to 11.4% for those older than 35.

What young motorists are buying

Standard Bank’s data shows that young South Africans prefer to buy second-hand, as only 27% of finance plans are for new vehicles.

While the make and model are still considerations for most buyers, they are less of a priority compared to concerns like features, quality, and practicality.

“We see a blend of affordability, reliability, and aspirational value in the brands and models our youth customers buy,” the head of automotive retail at Standard Bank Vehicle and Asset Finance, Derick de Vries, said. 

There is also a preference for cars with strong resale value, as trade-ins are considered an important stepping stone towards acquiring a more luxurious model down the line.

It therefore comes as little surprise that well-established carmakers like VW, Toyota, and Suzuki still dominate the charts with a 24%, 17%, and 14% share of all Standard Bank finance plans, respectively.

However, a big change in the report is that Chery made it into the top 10 for the first time with a 5% share.

This is on par with brands like Nissan and Renault, which have been in South Africa far longer than Chery.

It’s a significant indicator that Chinese automakers are gaining traction in all aspects of the local motoring scene, especially since brands like Chery have been around for less than five years.

Standard Bank found the results surprising, noting that young individuals are willing to try out new brands that lack the established resale value and network support of a brand like Toyota.

It’s also possible that Chery’s youth market share could be even higher if not for one important detail – it doesn’t offer a hatchback.

Hatchbacks are exceptionally popular with motorists in their 20s because they are small, affordable, easy to park, and light on fuel.

This makes them a great first car for individuals who aren’t comfortable jumping straight into an SUV.

It’s for this reason that models like the VW Polo Vivo and Suzuki Swift are two of the best-selling cars in the country, yet this is something that is beginning to change.

These days, an entry-level Polo Vivo costs a minimum of R271,900, whereas a Chery Tiggo 4 Pro SUV costs R269,900, and younger motorists are likely cottoning on to the idea that Chinese vehicles offer better value-for-money compared to legacy options like the Vivo.