South Africans aren’t giving up buying cars, no matter how expensive petrol is

New passenger vehicle sales have grown year-on-year in the second quarter of 2026, as motorists face fuel price pressure, rising living costs and ongoing strain on household finances, and continue to prioritise vehicle ownership

This was revealed in the TransUnion second-quarter 2026 Mobility Insights Report, which shows that new passenger vehicle sales grew 15.8% year-on-year – the strongest annual growth in three quarters.

According to the credit reporting agency, underneath this growth, a significant shift in buyer behaviour is underway.

It found that consumers are showing renewed interest in used vehicles and more affordable options as affordability becomes a more important consideration.

As a result, the used-to-new ratio declined year-on-year from 3.2 in the second quarter of 2025 to 2.7 in the second quarter of 2026, indicating that new vehicles gained market share over the past year.

Despite increasing from 2.3 in the first quarter of the year to 2.7 last quarter, TransUnion said the year-on-year movement confirms that the broader shift towards new vehicles remains intact.

“One of the most encouraging findings from this quarter’s report is that South Africans have not stepped away from vehicle ownership despite a more challenging economic backdrop,” said Ayesha Hatea, director of research and consulting at TransUnion Africa.

“What we are seeing instead is a more pragmatic consumer. Mobility remains essential, but consumers are carefully weighing affordability, financing costs, fuel efficiency and long-term ownership expenses before making purchasing decisions.”

TransUnion found that the number of consumers intending to purchase a vehicle within the next three months declined from 22% in the first quarter to 19% in the second quarter.

The biggest decline was recorded among lower- and middle-income households, while purchase intent among higher-income households increased from 24% to 27%.

This shows that while vehicle ownership remains a priority for many South Africans, consumers are increasingly focused on achieving the right balance between affordability, reliability and long-term value.

South African buyers are looking for affordable Chinese hybrids

According to TransUnion, one of the clearest indicators of changing consumer priorities is the rapid rise of Chinese automotive brands, which now account for more than one in every five cars sold in South Africa.

“Affordability has become one of the defining themes of South Africa’s mobility market,” explained Hatea.

“Consumers are increasingly looking for the best overall value proposition rather than simply the lowest price.”

She added that brands that combine affordability, quality, technology and lower running costs are proving particularly attractive in the current environment.

Alongside the growth of Chinese brands, hybrid vehicles have emerged as the preferred route to electrification.

According to the latest Mobility Insights Report, 45% of consumers consider hybrid vehicles when evaluating their next purchase, making them the most attractive electrified option in South Africa.

Factors like rising fuel costs combined with range anxiety associated with electric-only driving are encouraging potential buyers to consider more efficient vehicles without buying electric.

“Consumers want lower running costs and greater efficiency, but practicality remains paramount,” explained Hatea.

“Hybrid technology offers a compelling middle ground between affordability, convenience and sustainability.”

She added that the South African vehicle market continues to demonstrate resilience, but success in the next phase of growth will depend on understanding a more selective and value-driven consumer.

“The ability to deliver affordability, efficiency, trust and long-term value will increasingly determine which brands and businesses succeed in the market,” Hatea concluded.