Chery’s used car sales increased by 934% from 2021 to 2024, according to AutoTrader. Picture: Supplied
Vehicles built in China and India have become a dominant force in South Africa’s new vehicle market in recent years.
Naturally, they’re now becoming popular in the used vehicle space as South Africans continue to seek affordable vehicles amid constrained household budgets.
In the space of five years, Chinese cars have shaken off their once questionable reputation, with brands such as Chery, GWM and the latter’s Haval brand proving to South African consumers that their products can compete with established Japanese, Korean and European brands - and for considerably less outlay.
Motorists are responding by purchasing offerings from these marques, and several more that have penetrated the SA automotive scene since 2020.
New data from AutoTrader provides interesting insights into this immense growth, highlighting the increased demand for these cars from the East in the used car market.
“Less than a decade ago, Chinese vehicles barely showed up on the used car radar,” said George Mienie, CEO of AutoTrader. “However, these marques have made a triumphant return, reflected in a dramatic increase in listings and sold vehicles.
“For example, Chery went from selling 265 used cars in 2020 to 1,370 in the first half of 2024. South African consumers are enticed by the unbeatable combination of high equipment levels and excellent value for money.”
This trend has become prevalent in recent years. Chery’s used car sales increased by 934% between 2021 and 2024. And it’s not just Chery - GWM and its Haval brand have recently enjoyed notable growth, too. In 2021, 1,539 and 2,881 used examples were sold, respectively. The figures for the first half of 2024 are nearly there, with up-weighted 2024 figures pointing to 5,198 Havals sold on the used car market come year-end.
While the Chinese brands are creating a storm in the used car market, they’re not the only Eastern upstarts to have captured the attention of South African motorists.
Suzuki may be a Japanese brand, but most of its vehicles are manufactured in India for emerging markets, where value for money, low maintenance, and reliability are front of mind.
In 2021, 8,382 used Suzukis were sold through AutoTrader. Fast-forward three years, the budget brand shifted 7,743 units in the year's first half. Based on projections, this number is expected to increase to 15,486 used cars sold by the end of the year. Mahindra is also among the fastest-growing OEMs, with a projected 50% increase in used car sales from 2021 to 2024.
So, what is behind this onslaught of new challengers?
As consumers become increasingly cash-strapped and contend with the ever-increasing cost of living, many will likely abandon premium and established brands in favour of value-centric offerings.
Chinese- and Indian-built vehicles offer unbeatable value, often packed with features that are optional in more expensive cars. Moreover, they boast strong perceived build quality and, in many cases, strong warranties and service plans.
This is not the first time this has happened. Over 50 years ago, Japanese brands such as Toyota and Honda infiltrated new markets. Consumers were initially weary, but these carmakers proved themselves against established European and American brands and are now among the most trusted manufacturers in the country.
The same thing happened with Korean brands such as Hyundai. Available in South Africa since the mid-’90s, early models had questionable quality, and there were longevity concerns. But in 20 years, the automaker has reinvented itself and now makes some of the best cars on the market.
It’s similar to the story of Chinese companies like Chery and GWM. The rate of progress has been impressive, with product offerings going from subpar to sublime in a matter of years. However, with an increasing number of Chinese brands entering the field, there’s a risk the market may become oversaturated with budget-friendly offerings from the East.
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