South Africans are still buying cars despite rising household costs, but affordability is increasingly shaping what they buy, according to TransUnion's Q2 2026 Mobility Insights Report.
New passenger vehicle sales increased 15.8% year-on-year in the second quarter, the strongest annual growth recorded in three quarters. At the same time, the used-to-new vehicle registration ratio rose from 2.3 in the first quarter to 2.7 in Q2.
The shift comes as consumers face pressure from fuel prices, living costs and household finances, with vehicle purchase intent falling from 22% in Q1 to 19% in Q2.
Ayesha Hatea, director of research and consulting at TransUnion Africa, says the figures point to a more pragmatic consumer rather than a retreat from vehicle ownership.
“Mobility remains essential,” she says, but consumers are weighing affordability, financing costs, fuel efficiency and long-term ownership expenses more carefully.
Affordability reshapes vehicle choices
The report points to the growing appeal of more affordable vehicles, with Chinese automotive brands recording 72% year-on-year sales growth in Q2.
Chinese brands accounted for 22.4% of passenger and light commercial vehicle sales in South Africa during the quarter, according to TransUnion.
Hatea says consumers are increasingly looking beyond the lowest purchase price and considering the overall value offered by a vehicle, including its quality, technology and running costs.
The report also highlights changes in how consumers access vehicles, including greater interest in used vehicles, alternative financing structures, rental models and digital purchasing journeys.
Purchase intentions become more cautious
The decline in purchase intent was most pronounced among lower- and middle-income households. Among higher-income consumers, however, purchase intent increased from 24% to 27%.
TransUnion says the overall decline should be viewed as a sign that consumers are becoming more deliberate about vehicle purchases as affordability pressures increase, rather than as evidence of weakening demand.
The report says this changing consumer behaviour also has implications for businesses across the automotive ecosystem, including OEMs, dealers, financiers and insurers.
Hybrids emerge as preferred electrification route
Affordability and practicality are also influencing consumers' approach to vehicle technology.
According to the report, 45% of consumers now consider hybrid vehicles when evaluating their next vehicle purchase, making hybrids the most attractive electrified option among those surveyed.
TransUnion attributes the interest partly to the potential for lower running costs, while charging infrastructure remains a consideration for consumers evaluating other electrified vehicles.
As vehicle purchasing becomes more value-driven, the report says businesses will need to respond to changing affordability expectations while managing risks such as identity and payment fraud across increasingly digital customer journeys.
