2024 AutoTrader Annual Car Industry Report: A Market in Motion

The South African automotive industry is undergoing a major transformation, with affordability now driving consumer decisions more than brand loyalty. The 2024 AutoTrader Annual Car Industry Report, released by AutoTrader, reveals significant shifts in purchasing behaviour, the rise of Chinese car brands, the resilience of the used car market, and the accelerating momentum towards electric vehicles (EVs) and hybrids.

With over 950 million pages opened, 663 million searches conducted, and 390 million consumer advert views in 2024, this report provides unparalleled insights into how South Africans shop for cars. For industry leaders, dealerships, and manufacturers, understanding these trends is critical to staying ahead in an evolving market.

The Power Shift: Affordability Trumps Brand Loyalty

For years, South African consumers have remained fiercely loyal to premium brands like Volkswagen, Toyota, BMW, Ford, and Mercedes-Benz. But that dynamic is shifting as car buyers prioritise affordability, forcing established manufacturers to rethink their strategies.

By mid-2024, leading brands experienced drastic sales declines, with many consumers protesting high vehicle prices by shifting their interest towards more cost-effective alternatives. In contrast, Chinese carmakers such as Chery, Omoda, and GWM gained significant traction, thanks to their ability to offer feature-rich, well-built vehicles at competitive prices.

• Chinese car searches surged by 112% in 2024, with Omoda leading the pack with a 197% increase in consumer interest.
• Advert views and enquiries for Chinese brands skyrocketed by 88% and 183%, respectively, signaling strong buyer intent.
• Chinese brands dominated the SUV segment, which continues to be the preferred vehicle type for South African consumers.

This shift presents a challenge for established brands and used-car dealerships, as consumers now expect better value for money while still demanding premium features.

Used Car Market Remains Resilient Amidst Economic Uncertainty

Despite a 3% decline in new car sales, the used car market has shown remarkable resilience, remaining a key pillar of South Africa’s automotive landscape.

In 2024:

• 358,431 used passenger cars were sold, with an average selling price of R406,023.
• The Toyota Hilux, Volkswagen Polo, and Ford Ranger were the most sold models.
• The average used car age was 6 years, with an average mileage of 74,760 km.

Used car sales were only down 2% year-over-year, proving that pre-owned vehicles remain an attractive option for budget-conscious buyers. Meanwhile, dealerships that embraced data-driven pricing and inventory management strategies achieved faster turnaround times and maximised profitability.

Online Car Shopping Surges: The Future is Digital

The way South Africans shop for cars is changing rapidly, with online platforms playing an increasingly vital role in the buying process. AutoTrader’s data shows a record-breaking year for digital engagement, with:

• Over 129 million sessions recorded on the platform.
• An average time of 4 minutes and 2 seconds spent per session—indicating deep engagement.
• 21 car searches happening every second throughout 2024.

Volkswagen remained the most searched brand, while the Toyota Hilux was the most searched model. BMW lost its title as the most-searched brand, highlighting changing consumer preferences.

The takeaway for dealerships? A strong digital presence is no longer optional—it’s essential. Consumers are researching and comparing cars online before stepping into a dealership, meaning brands must optimise their online listings, pricing strategies, and customer interactions to stay competitive.

The Shift to Electrification: EVs and Hybrids on the Rise

The most groundbreaking trend in 2024 was the unprecedented growth of New Energy Vehicles (NEVs)—including EVs and hybrids.

• NEV sales surged by 92%, with hybrid vehicles leading the charge.
• Toyota Corolla Cross Hybrid was the top-selling NEV, proving that affordability and range are still key barriers to full EV adoption.
• 83% of all NEVs sold were hybrids, reinforcing that South Africans prefer electrification without full reliance on charging infrastructure.
• Battery Electric Vehicles (BEVs) saw a 76% increase in sales, with models like the Volvo EX30 and BMW iX3 gaining traction.

While EV adoption in South Africa remains slow compared to global standards, 2024’s numbers indicate a growing shift towards greener, more sustainable mobility solutions. The challenge remains infrastructure development, charging stations, and pricing, but as more affordable models enter the market, adoption rates will continue to rise.

What This Means for Dealerships, OEMs, and Industry Leaders

With such dynamic shifts in consumer behaviour, automotive stakeholders must rethink their strategies to remain competitive. Key takeaways include:

• Dealerships must embrace data-driven marketing and stock management. Understanding customer search and enquiry patterns can help refine pricing, promotions, and inventory strategies.
• Manufacturers must address affordability concerns. The success of Chinese automakers proves that price-sensitive consumers are willing to explore new brands. Established manufacturers must either adjust pricing models or introduce competitive budget-friendly models.
• Digital-first strategies are critical. With millions of car searches and advert views occurring online, dealerships need engaging, mobile-friendly platforms, AI-driven customer support, and virtual showrooms to attract buyers.
• NEVs will shape the future. With sales rising, manufacturers and policymakers must work together to improve charging infrastructure, reduce costs, and incentivise adoption.
• The used car market remains strong, but competition is increasing. Consumers expect more affordable yet reliable options, meaning dealers must optimise stock rotation, offer value-added services, and maintain competitive pricing.

The Road Ahead

The 2024 AutoTrader Annual Car Industry Report paints a compelling picture of a market in flux. With affordability, online engagement, and NEV adoption driving change, the industry is at a crossroads.

For dealerships, adapting to these shifts means staying ahead of evolving consumer expectations. For manufacturers, competition is fiercer than ever, and winning customers requires a balance between pricing, technology, and efficiency.

As South Africa’s automotive industry accelerates into 2025, one thing is clear: those who innovate, embrace digital transformation, and listen to the needs of the modern buyer will emerge as industry leaders.

For a full breakdown of the insights, trends, and data from this year’s report, visit AutoTrader.co.za.