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South Africa’s Auto Market Shows Signs of Recovery as Used Vehicle Demand Rises

Location: Business
  • Used vehicle financing outpaces new car financing, with a ratio of 1.56 to 1 as affordability remains a key driver
  • New vehicle finance agreements grow by 12.7% YoY, despite economic uncertainty
  • South Africa reaches a milestone of 1,000+ battery electric vehicle (BEV) sales in 2024, with PHEV and HEV sales growing over 60% YoY

The latest TransUnion South Africa Vehicle Pricing Index (VPI) for Q4 2024 reveals a cautiously optimistic outlook for the country’s automotive sector, with improving economic conditions encouraging consumer confidence while affordability challenges continue to shape purchasing decisions.

Key insights from the report indicate a continued shift towards used vehicles, with financing for pre-owned vehicles outpacing new car financing at a ratio of 1.56 to 1, up from 1.23 in Q4 2023. Meanwhile, new vehicle prices increased by 1.7% due to supply chain constraints and production costs, while used vehicle prices declined by 2.8%, making them a more attractive option for cost-conscious buyers.

Despite these challenges, new vehicle finance agreements grew by 12.7% year-over-year (YoY), with Gen X and Millennials accounting for 67% of new agreements*.

“South Africa’s automotive sector is navigating a complex landscape, balancing economic improvements with persistent affordability challenges,” says Marcia Mayaba, Sales Vice President, Auto Information Services at TransUnion South Africa. “The demand for used vehicles continues to grow, while we’re also seeing an increasing shift towards alternative financing and ownership models, such as leasing and car subscriptions, particularly among younger consumers.”

Used Vehicles Dominate, While New Car Market Seeks Stability

The Q4 2024 VPI report highlights a strong preference for used vehicles, with financing activity significantly outpacing new vehicle sales. This shift is largely driven by affordability concerns, as inflationary pressures and high vehicle prices continue to impact consumer purchasing decisions.

The used-to-new financing ratio increased to 1.56 in Q4 2024, reflecting a clear trend toward more budget-friendly alternatives. At the same time, new vehicle registrations grew by 14.4% YoY, supported by improved economic conditions and rising consumer confidence.

The Future of South Africa’s Auto Market: EV Growth and Digital Financing

Looking ahead, the report highlights the rising potential of electric vehicles (EVs) in South Africa, signalling a significant shift in consumer interest and market dynamics. The country reached a milestone of over 1,000 battery electric vehicle (BEV) sales in 2024, a small but significant step in a market still dominated by petrol and diesel vehicles. While EVs represent a fraction of total sales, the 60% year-over-year growth in hybrid (HEV) and plug-in hybrid (PHEV) sales signals a gradual shift in consumer interest toward more sustainable options.

The introduction of more affordable EV models priced under R1 million, such as the BYD Dolphin and Seal, is expected to accelerate adoption in 2025, making EV ownership more accessible to a broader segment of the market. However, affordability remains a key barrier, with high upfront costs and concerns around charging infrastructure limiting mainstream adoption.

“EV adoption in South Africa is gaining momentum, but for this growth to be sustained, industry players must collaborate to make ownership more accessible," says Mayaba. "With the right financial products, infrastructure expansion, and increased consumer awareness, EVs have the potential to reshape South Africa’s automotive landscape in the years to come.”

Financing Trends and Alternative Ownership Models Gain Momentum

The report also reveals an evolving vehicle financing landscape, with leasing, subscriptions, and rent-to-buy agreements gaining traction as consumers seek more flexible and cost-effective solutions.

For the first time, the Q4 2024 VPI report explores the impact of e-Hailing, leasing, and car subscriptions on the South African auto market. While outright vehicle ownership remains dominant, alternative mobility solutions are becoming increasingly relevant. The report indicates that leasing and subscription-based models are particularly appealing to Millennials and Gen Z consumers, who prioritise affordability and flexibility over long-term ownership commitments.

Additionally, e-Hailing continues to serve as a supplementary transport solution rather than a direct competitor to vehicle ownership. According to recent data from inDrive, an international ride-hailing service, 21.1% of South Africans make us of e-hailing services, reflecting the growing popularity of these transportation alternatives. However, the majority of users still aspire to own a vehicle in the long term. To address affordability constraints and credit access challenges, leasing and rent-to-buy options are emerging as viable alternatives, offering consumers flexible solutions that align with their financial situations.

While lower-value finance agreements (under R250,000) declined, a growing share of financed vehicles now falls within the R250,000 to R750,000 range. This shift suggests that while affordability remains a concern, consumers are prioritising flexible financing solutions and adjusting their purchasing behaviour to align with available credit and economic conditions

“The traditional model of vehicle ownership is evolving,” adds Mayaba. “While outright ownership remains a key aspiration, younger generations are increasingly exploring flexible mobility solutions that align with their financial realities and lifestyle preferences.”

As South Africa’s automotive sector continues to evolve, the interplay between affordability, alternative financing models, and emerging technologies like EVs will shape its future. While used vehicles remain the preferred choice for many consumers, the growth in digital financing and the introduction of more accessible EV models signal an industry on the brink of transformation. Collaboration among industry players, financial institutions, and policymakers will be key to ensuring sustainable growth and greater accessibility for all consumers. With the right innovations and strategies, the sector is well-positioned to adapt to changing market dynamics and drive long-term success.

Read the latest TransUnion VPI Q4 2024 report here.

ENDS

Notes to Editors:

* Gen X (born 1965-1980), Millennials (born 1981-1996) and Gen Z (born 1997-2012)

The TransUnion South Africa Vehicle Pricing Index (VPI) tracks vehicle pricing trends across new and used markets, integrating data from SACRRA and industry-leading sources.

For more information, visit: www.transunion.co.za

Read moreSouth Africa’s Auto Market Shows Signs of Recovery as Used Vehicle Demand Rises

Be the Reason: A Movement in Partnership with TransUnion and the International Finance Corporation to Unlock Financial Opportunity for All

Location: Business

TransUnion, a global information and insights company, has launched a bold new campaign, ‘Be the Reason Things Change’, aimed at making financial inclusion a reality for more South Africans. This powerful initiative calls on individuals, communities, businesses, and institutions to join a movement for change, one that ensures every person is seen, supported, and given the tools to participate in the formal financial system.

In a country known for both its beauty and inequality, where access to formal credit remains out of reach for many, ‘Be the Reason Things Change’ seeks to break down the barriers that keep people excluded, by focusing on consumer education, innovation, and community engagement. The campaign is designed to help South Africans take control of their financial futures, regardless of who they are or where they come from, whilst also advocating for businesses to embrace alternative data and innovative scoring solutions to see and serve the unseen. By doing so, they too can empower the disempowered, expanding access and inclusion, and enabling more people to participate meaningfully in the financial ecosystem and live the lives they deserve.

“At TransUnion, we believe in a world where the impossible becomes possible, where the unseen are finally seen, and where every South African deserves the opportunity to participate fully in the economy,” says Lee Naik, CEO TransUnion Africa.

’Be the Reason Things Change’ is more than a campaign slogan; it’s a call to action to take part in building a more inclusive financial system. Through innovative data solutions and consumer education, we aim to spark a national conversation about breaking down barriers in the credit landscape and ensuring financial empowerment is accessible to all. Ultimately, we want more South Africans to be included in the formal financial economy, empowering them to understand how access to credit can transform their lives and enable them to uplift their communities,” says Naik.

Addressing South Africa’s Financial Inclusion Challenge

Many South Africans continue to face obstacles in accessing formal credit and quality financial services. Traditional systems often feel exclusive or out of reach, especially for underserved individuals and small businesses, because they rely heavily on past borrowing behaviour as the primary measure of creditworthiness. According to TransUnion’s CreditVision® Telco Data Score data-modelling, over 1.4 million credit-invisible South Africans open new credit accounts each year, contributing to more than four million new accounts over the past three years*. Yet traditional scoring models frequently fail to assess these consumers accurately, leaving over 16 million adults outside the formal credit system. Successfully integrating these and other excluded consumers into the economy could contribute an estimated R173 billion to South Africa’s GDP.

A significant portion, approximately 35% of new-to-credit consumers are under the age of 25, many entering the workforce for the first time and using credit to cover essentials such as work clothing. This highlights the urgent need for innovative, inclusive tools that better reflect the realities of younger, digitally active individuals who may lack a conventional credit footprint.

TransUnion is shifting the paradigm by embracing alternative data, creating new scoring capabilities, and ensuring that individuals who were once unclassifiable can now be assessed fairly and accurately. Its “Be the Reason Things Change” campaign responds to this need by equipping the public with practical tools, credit education, and the confidence to take charge of their financial futures.

Collaborative Effort with Global Partners

The campaign is supported by the International Finance Corporation (IFC), the private sector arm of the World Bank Group, has played a key role as a technical advisor and promotor of credit information tools in South Africa, reinforcing the global imperative to expand equitable access to financial services.

“We are proud to support TransUnion’s ‘Be the Reason Things Change’ campaign, which aligns closely with our mission to advance inclusive economic development,” says Cláudia Conceição, IFC Regional Director for Southern Africa. “By removing barriers to credit access, this initiative empowers individuals and communities to build financial resilience and unlock economic opportunity, key pillars of long-term social impact.”

This collaboration highlights the value of cross-sector partnerships in tackling systemic financial exclusion, combining local insights with global best practices to deliver scalable solutions.

Empowering Through Education, Innovation, Investment and Africa Firsts

‘Be the Reason Things Change’ will see TransUnion roll out a fully integrated marketing campaign designed to demystify the credit system and empower people from all walks of life. Key pillars of the campaign include:

  • A first-ever interactive peelable billboard in Africa, installed at Melrose Arch, located by the entrance off Corlett Drive in Johannesburg. 
  • A first-ever digital billboard aimed at reaching audiences beyond the Johannesburg area.
  • Transformational stories from campaign ambassadors include Springbok rugby stars Makazole Mapimpi and Lukhanyo Am, as well as fashion entrepreneur Tshepo Mohlala
  • Springbok, Lukhanyo Am and fashion entrepreneur, Tshepo Mohlala will be launching the campaign at Melrose Arch on 21 August 2025 where they will peel the first layers of the billboard and share their own personal journeys.
  • Over R10m valued in sponsorship and investment in e-learning credit courses for over 5,000 South Africans.
  • Practical education: Simple, clear resources to help people understand credit scores, manage debt, and make informed financial choices.
  • A unique AI-powered digital film piece.
  • Innovative Solutions: New offerings to help enable lenders to see consumers previously unseen, empowering consumers to access new credit opportunities

‘Be the Reason Things Change’ is about rewriting the story around credit and creditworthiness,” says Naik. “We want every South African to understand how credit works, what their score means, and how they can maintain and improve it. More importantly, we want them to believe they can be the reason things change.”

Campaign Execution Partners

The campaign was brought to life through a dynamic collaboration with creative agency 1 Over One, who led the conceptual development; local production partner Run Jump Fly, who delivered a unique AI-powered digital film piece, FleishmanHillard South Africa and Capacity Relations who provided strategic PR, media and activation support to amplify the message and ensure meaningful engagement across key audiences.

Join the Movement

TransUnion invites all South Africans to join the movement for financial inclusion. To learn more, participate in the campaign, and access educational resources, visit www.transunion.co.za/bethereason.

Consumers can get their free annual credit report from TransUnion here.

* The three-year period refers to an analysis of the TransUnion Credit Bureau database over the period for January 2022 – December 2025.

Read moreBe the Reason: A Movement in Partnership with TransUnion and the International Finance Corporation to Unlock Financial Opportunity for All

South African Automotive Market: Recovery Gains Traction but Headwinds Persist

Location: Business
  • New passenger sales rose 22.5% year-on-year, the strongest volumes since 2014
  • Chinese automakers expanded their market share to nearly 15%, up from just 3.1% in 2022
  • Passenger-vehicle exports contracted sharply, down 24.6% amid weaker global demand and new US tariffs

TransUnion’s latest Mobility Insights Report shows South Africa’s automotive market building momentum in 2025, supported by a favourable interest rate environment, record-low new-vehicle inflation, and liquidity from the two-pot pension reform. While recovery is underway, the outlook remains fragile, with affordability constraints and export headwinds threatening longer-term growth.

Supportive Shifts, But Growth Remains Fragile

The South African Reserve Bank has cut interest rates five times since September 2024 and inflation has returned to the lower end of the 3-6% band1, providing households with some relief. Consumer confidence has improved among middle- and higher-income groups, although low-income consumers continue to face pressure from food and electricity costs2.

“These macro shifts provide short-term support to the vehicle market, but momentum is likely to taper in 2026 without further reforms,” said Lee Naik, CEO of TransUnion Africa.

Affordability And Value Drive a Surge

Passenger car sales broke through the 35,000-unit ceiling for the first time in years, with July and August 2025 marking the strongest volumes since 2014. According to Naamsa, new passenger car sales grew 22.5% year-over-year (YoY) in Q2, fuelled by lower borrowing costs, aggressive OEM incentives and the entry of new value-focused brands.

Chinese automakers continued their rapid growth, expanding market share from 3.1% in 2022 to nearly 15% in Q2 2025. Their affordable, tech-rich SUVs and expanding dealer networks are reshaping competition, forcing legacy OEMs to rethink pricing, features, and model cycles. Toyota retained overall leadership, with Suzuki securing second place for the second consecutive quarter.

“Improved affordability, aggressive incentives and growing demand for value brands, alongside modest support from two-pot withdrawals, helped sustain momentum through 2025. However, as interest rates remain elevated and credit conditions tighten, and the two-pot effect normalises, growth is expected to moderate in 2026, with export risks and rand volatility adding uncertainty,” said Naik.

Diverging Trends: New vs. Used Vehicle Demand

NaTIS data shows new registrations rising 20% YoY in Q2 2025, led by Northern Cape, Free State and Northwest. In contrast, used registrations declined by 1.4%, reflecting pressure in that segment.

Across all vehicle sales, the Used-to-New Vehicle Registration Ratio rose to 3.2 in Q2, up from 2.5 in Q1, indicating a quarter-on-quarter increase in the relative share of used vehicle registrations. However, this remains below the 3.8 ratio seen through much of 2024, suggesting that new vehicles have regained some ground YoY. While used vehicles continue to dominate overall registrations, the market has shifted slightly back toward new vehicles compared to last year. This nuanced divergence presents opportunities for OEMs and dealer networks, while independent used dealers continue to face headwinds.

Exports Slump Amid Global Shocks

While domestic momentum improves, passenger vehicle exports fell 24.6% in Q2 2025 due to softer global demand and new US tariffs of up to 30%. Premium models, heavily reliant on the US and European markets, are under pressure, raising concerns for production, jobs, and investment.

Two-pot Withdrawals: Targeted Liquidity with Visible Impact

The September 2024 two-pot retirement reform injected liquidity into households, with evidence from the Bureau of Market Research suggesting a direct impact on mobility demand3, particularly in the used car market. While withdrawals were generally insufficient to fund deposits for new vehicles, they provided meaningful support to affordability-driven used vehicle purchases.

The reform is offering short-term relief rather than long-term wealth extraction, with withdrawals largely used for deposits, consumption, or debt repayment. Generational differences are evident: Millennials (aged 29 to 44) and younger Gen X (aged 18 to 28) are the most active claimants, while Baby Boomers withdraw minimally. Repeat withdrawals are becoming more common, suggesting both ongoing financial strain and the emergence of a recurring source of liquidity for entry-level and mid-market segments4.

“Two-pot withdrawals were not the only factor lifting sales,” noted Naik. “But the timing, scale and claimant profile suggest they acted as a meaningful catalyst for incremental used-car purchases.”

What Industry Players Should Do Next

Looking ahead, TransUnion advises that OEMs, dealers and lenders recalibrate strategies to balance domestic opportunities with external risks. Industry participants should align campaigns with liquidity cycles, planning promotions and stock availability around expected two-pot withdrawal windows.

Affordability must remain the priority, with a sharpened focus on value brands, certified pre-owned vehicles, and models that deliver a strong total cost of ownership. Financing solutions should also evolve, offering deposit support, trade-in boosters, and more flexible terms, while carefully monitoring repayment behaviour to manage post-purchase risk.

At the same time, leveraging data-driven insights, integrating credit and registration analytics to identify liquidity-sensitive buyers, preapprove customers, and track repayment performance, will be critical for sustaining growth in an uncertain environment.

“South Africa’s auto market is regaining momentum, but it’s a fragile recovery,” said Naik. “Those who time offers to policy-driven liquidity, sharpen affordability, and manage risk proactively will be best placed to capture growth.”

Read the full TransUnion South Africa Mobility Insights Report here.

ENDS

Notes to Editors: The Q2 2025 release is the second edition of the TransUnion South Africa Mobility Insights Report, formerly known as the Vehicle Pricing Index. The rebranded report now captures broader consumer, financing, and insurance insights across the mobility ecosystem.

Sources:

1 South African Reserve Bank (SARB)

2 TransUnion-South-Africa-CCI-Report-H2-2025-V9.pdf

3 Two-pot-claims-and-credit-data-FINAL.pdf

4 FAnews: Majority of two-pot withdrawals in the new tax year are repeat withdrawals; Moneyweb: Two-pot withdrawal: repeat claims surge; and Moneyweb, Two-pot payouts surge to R57B, with 4m withdrawals to date.

Read moreSouth African Automotive Market: Recovery Gains Traction but Headwinds Persist

TransUnion’s New AI-Powered Film Puts Humanity at the Heart of Data

Location: Business

TransUnion, a global information and insights company, has unveiled a bold new chapter in its South Africa-focused Be the Reason Things Change campaign with the launch of a powerful AI-driven brand film. This emotionally resonant digital piece continues the campaign’s mission to make financial inclusion a lived reality for more South Africans by reimagining how technology can be used to tell human stories of inclusion, visibility and empowerment.

Developed with creative agency One Over One and production partner Run Jump Fly, the film fuses artificial intelligence with authentic storytelling to capture the experiences of everyday South Africans navigating the financial system. It serves as both a creative innovation and a powerful social statement – demonstrating how data, when used responsibly, can shine a light on those who are often unseen.

“The AI film is more than a creative milestone; it’s a deeply human story told through the lens of technology. Using AI-generated visuals, the film brings to life the emotional realities behind financial data – the hope of opportunity, the weight of exclusion, and the power of visibility,” said Amy Beck, CMO of TransUnion Africa. “Rooted in empathy and powered by innovation, the film embodies our belief that technology should serve people, not the other way around. It invites viewers to look past the numbers and be part of a movement changing the way we see each other”.

Turning Data into Impact

The AI film builds on the success of TransUnion’s Be the Reason Things Change movement, which has inspired South Africans to act – making the invisible visible and driving meaningful impact across the country.

In just one month, the campaign achieved:

  • 10,838 panels peeled nationwide (this includes physical and digital billboard panels), each unlocking access to free credit education e-learning courses, valued at R2,000 each.
  • Education fund prizes awarded to five individual winners, valued at R20,000 each, awarded directly to recognised educational institutions or nominated beneficiaries.
  • Ten tech-for-learning prizes, worth R7,000 each, comprising of a laptop and 12 months of data, equipping recipients with the tools they need to thrive in a digital-first world.

These results go beyond metrics – they represent real lives changed through knowledge, opportunity and empowerment. One of the five recipients of the R20,000 education fund prize, Roggers Mamaila, shared how the campaign has made a lasting impact on his family’s future: “This contribution towards my family’s education means more than words can express. It’s a tangible step toward a better future – one my family will carry with pride for years to come. It’s proof that when people are seen, real change becomes possible.”

AI with a Purpose

In an age where artificial intelligence often feels distant or impersonal, TransUnion’s new film reframes the narrative – showing how innovation, when guided by empathy, can accelerate financial inclusion and create lasting change.

Unlike many AI-driven creative pieces that use artificial intelligence in fragments – generating snippets, visuals, or voiceovers – this film is a fully integrated, end-to-end AI production. From concept to execution, every aspect of the film was shaped using AI tools, making it a first-of-its kind on the African continent. What sets this film apart is not just its use of technology, but its authenticity and purpose. The film draws its narrative from real lives and lived experiences, transforming data into emotion, and statistics into stories that matter.

Every frame is a reflection of the campaign’s core belief: that visibility leads to change. This isn’t just an experiment in technology – it’s a movement in storytelling. The piece invites viewers to rethink what’s possible when technology and trust work together – to see every data point as a story, every statistic as a person, and every innovation as a chance to drive inclusion.

The campaign continues to challenge traditional notions of creditworthiness by advocating for alternative data and inclusive scoring models that better reflect the realities of underserved communities.

Watch the AI brand film and learn more at: https://www.transunion.co.za/bethereason

Read moreTransUnion’s New AI-Powered Film Puts Humanity at the Heart of Data

Dramatic Song, Disturbing Priorities – Municipality Must Explain Wasteful Spending

Location: News

The launch of the Drakenstein “anthem” may be intended to promote pride, but what it reveals instead is a deeply troubling set of municipal priorities and a worrying use of public funds in a time of growing hardship.

The post DRAKENSTEIN MUNICIPALITY:  DRAMATIC SONG, DISTURBING PRIORITIES – MUNICIPALITY MUST EXPLAIN WASTEFUL SPENDING appeared first on For Good.

Read moreDramatic Song, Disturbing Priorities – Municipality Must Explain Wasteful Spending