South Africa has over 1,700 dealerships representing 50 passenger brands, 29 bakkie and commercial brands, and more than 2,500 model derivatives.
Dealers account for roughly 84% of the 45,000–50,000 new vehicles sold each month, managing high financing levels, evolving consumer expectations, and extensive compliance requirements.
“Selling cars in South Africa has never been tougher,” said Cohen.
“Dealers face intense competition, tight margins, a complex web of compliance obligations, and rapid shifts in consumer behaviour. Yet they remain the backbone of the industry, creating jobs, taking financial risks, and ensuring mobility for millions of South Africans.”
Around 80% of new vehicle sales are financed, typically over 72 months, with vehicles retained for an average of 45–48 months before being resold. The average financed amount is approximately R360,000.
While the broader economy faces challenges, there are positive indicators: inflation currently sits at 3.3%, banks have not ruled out further rate cuts, and vehicle finance originations have increased by 12% year-on-year, alongside a slight decline in delinquencies.
Despite these signs, the environment remains demanding. Dealers must navigate more than 120 legislative requirements, each carrying potential risk if mismanaged.
Added pressures include the rise of AI, new-energy vehicles, and autonomous driving, which further complicate the industry landscape.
