South African car buyers are becoming increasingly likely to abandon legacy brands for emerging Chinese offerings, and there are several reasons why.
Global consumer credit reporting agency TransUnion found that in 2025, Chinese brands far outpaced the broader South African new vehicle market.
It noted that while overall original equipment manufacturer (OEM) sales returned to positive growth in the second, third and fourth quarters, Chinese brands expanded at nearly nine times the market average.
Year-on-year (YoY) growth recorded by OEMs in South Africa was 4%, 10%, 9%, respectively, while Chinese brands posted YoY growth of 89%, 92% and 86% in the same three quarters.
Chinese car brands have been driving disproportionate growth for years, more than quadrupling their combined market share since 2021.
By the end of 2025, Chinese brands held 17% of the market share, gaining 1.7% in the fourth quarter alone.
Established OEMs and legacy brands, by contrast, lost ground according to TransUnion. Their combined share fell one percentage point in the last quarter of 2025 to 52.1%, while Chinese brands hit new highs.
Of the five top-performing car brands by year-on-year growth in the final quarter of 2025, three were Chinese badges.
JAC saw its annual sales increase by more than half, recording a 53% YoY increase, while GWM took second place with an increase of 46% YoY. Chery ended in fourth with a 22% increase in its yearly sales.
According to TransUnion, the surge was driven by aggressive pricing, extended warranties, and improved resale confidence, as well as a structural shift from import disruptors to emerging local manufacturers.
“Nearly one in five vehicles sold was of Chinese origin, Chery signed an agreement to acquire Nissan’s Rosslyn plant, and dealer confidence returned to positive territory and held there,” detailed TransUnion Africa CEO, Lee Naik.
“These are structural changes that will shape this industry for years to come.”
Why Chinese brands are winning in South Africa
In its Quarter Four 2025 Mobility Insights Report, TransUnion detailed five ways Chinese brands are winning “the value game”.
The first way they are doing so is through industrial expansion of imports and local manufacturing.
Chery has already signed a definitive agreement to take over Nissan’s Rosslyn plant in Pretoria, which includes the factory, land, and stamping facility by mid-2026.
Minister of Trade, Industry and Competition Parks Tau is also in talks with several other emerging brands to establish their own manufacturing plants in South Africa.
TransUnion notes that the narrative has shifted beyond sales, towards a deeper industrial foothold as Chinese OEMs shift from import disruptors to local manufacturers.
This strengthens supply confidence, supports job creation, and embeds these brands as a permanent part of South Africa’s automotive base.
Secondly, Chinese brands offer competitive pricing, creating price pressure by squeezing dealer margins and forcing established OEMs to respond with discounts and incentives.
This, in turn, is reshaping the economics of the entire local new car sales ecosystem.
Chinese badges are also starting to enter the pre-owned market, as popular models like the Chery Tiggo 4 Pro feed a steady pipeline of nearly-new vehicles, shifting market sentiment.
A big selling point that these brands are using in South Africa is their extended warranties, which in some cases stretch for up to ten years or one million kilometres.
Finally, Chinese brands are no longer confined to the budget end and are moving into more premium segments.
Sub-brands like Lepas are now targeting the mid to premium market with comprehensive offerings that are often only available as optional add-ons in legacy brands.
These factors are creating a value ladder that allows consumers to move upmarket without breaking the bank or leaving the budget Chinese brand family.
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