South Africa’s used car market is going through a major shift, and one of the country’s biggest vehicle retailers is starting to feel the impact.
WeBuyCars, known for its massive vehicle supermarkets and strong online presence, says the growing popularity of affordable Asian vehicles is putting pressure on its prices and profit margins. While the company is still selling thousands of cars every month, the rise of cheaper new vehicles from China and India is changing how South Africans shop for cars.
For many motorists, the decision between buying a used car or a brand-new one is no longer as straightforward as it used to be.
Traditionally, second-hand cars offered the best value for money. Buyers who could not afford a new vehicle often turned to the used market to get something reliable at a lower monthly repayment. But over the past few years, several Asian car brands have entered South Africa aggressively with lower prices, modern technology, long warranties, and attractive financing deals.
Brands such as Chery, Haval, GWM, Omoda, Jetour, JAC, and Mahindra have rapidly gained attention among South African consumers. Many of these vehicles come packed with features that were once only available in more expensive models, including touchscreen infotainment systems, advanced safety technology, leather interiors, and fuel-efficient engines.
As a result, some buyers are now finding that a brand-new entry-level SUV from an Asian manufacturer can cost close to the same price as a second-hand vehicle from a more established brand.
This growing trend is starting to reshape the local automotive industry.
According to WeBuyCars’ latest financial results for the six months ending March 2026, the company experienced strong revenue growth, but profits came under pressure as it lowered vehicle prices to remain competitive. The company generated more than R14 billion in revenue during the reporting period, while vehicle sales volumes remained high.
However, tighter margins revealed just how competitive the market has become.
WeBuyCars explained that many vehicles in the used market are now competing directly against affordable new Asian imports. To keep vehicles moving off showroom floors and maintain sales momentum, the company had to reduce prices on certain models.
For South Africans already struggling with the rising cost of living, these changes are becoming increasingly important.
Car ownership has become more expensive over the past few years due to fuel price increases, higher interest rates, insurance costs, and expensive vehicle maintenance. Monthly repayments are under closer scrutiny than ever before, especially for middle-class households trying to balance transport needs with food, rent, school fees, and electricity costs.
Because of this, affordability is now one of the biggest deciding factors when people buy cars.
Many consumers are starting to ask themselves an important question: if a used vehicle costs almost the same as a new car with a warranty and service plan, is buying second-hand still the better deal?
That question is creating serious competition within the market.
Chinese and Indian vehicle brands have particularly gained momentum in South Africa because they are offering products that feel more premium than their prices suggest. Several motorists who were once hesitant about buying Chinese vehicles are now changing their opinions after seeing improvements in design, reliability, technology, and after-sales support.
The growth of these brands is also visible on South African roads. Vehicles from Chery, Haval, and Omoda are becoming increasingly common in cities, suburbs, and even smaller towns.
Industry analysts believe the trend is far from over.
As more affordable new vehicles enter the country, experts expect the used car market to evolve significantly over the next few years. Vehicles from Asian manufacturers that are currently being bought new today will eventually enter the second-hand market, potentially creating even more competition for traditional used vehicle sellers.
Interestingly, WeBuyCars believes this could eventually benefit its business.
The company noted that Chinese vehicle brands already account for a growing percentage of cars sold on its platform compared to just a few years ago. As these brands become more accepted by consumers, they are expected to become a larger part of South Africa’s used vehicle ecosystem.
At the same time, WeBuyCars continues to expand its operations despite the growing pressure. The company has opened additional vehicle supermarkets across the country and continues investing heavily in its infrastructure and online systems.
Its large-scale buying network, quick vehicle turnaround times, and strong digital presence still make it one of the dominant players in South Africa’s used car industry.
The company also continues benefiting from high consumer demand for mobility. In many parts of South Africa, reliable public transport remains limited, making car ownership a necessity rather than a luxury for millions of people.
Even with economic pressure, South Africans still need vehicles to get to work, school, and business opportunities.
That demand is helping keep the automotive market active despite rising competition.
At the same time, the shift toward affordable Asian vehicles reflects a broader change in consumer behaviour across South Africa. Buyers are becoming more value-conscious and increasingly open to alternatives outside traditional European, Japanese, and American brands.
Price-sensitive consumers are now comparing features, warranties, fuel consumption, and financing costs far more carefully before making purchasing decisions.
For younger buyers especially, brand loyalty is no longer as strong as it once was.
Many are willing to consider newer brands if the pricing makes sense and the vehicle offers modern features at a lower cost.
This changing mindset is likely to continue shaping the future of South Africa’s automotive market.
For consumers, the increased competition may ultimately be good news. More affordable options in both the new and used vehicle sectors could help buyers find better deals during a difficult economic period.
For companies operating in the used car market, however, the pressure is mounting.
As affordable Asian vehicles continue gaining traction, businesses like WeBuyCars may need to adapt faster, price smarter, and compete harder in a market that is becoming increasingly crowded and competitive.
