Passenger Cars - South Africa

South Africa

In 2024, the revenue in the Passenger Cars market in South Africa is projected to reach €8.3bn.
It is expected to experience an annual growth rate (CAGR 2024-2028) of 0.77%.
This growth rate will result in a projected market volume of €8.6bn by 2028.
It is worth noting that the largest segment in this market is SUVs, with a projected market volume of €4.3bn in 2024.
Looking specifically at unit sales, Passenger Cars market unit sales are expected to reach 321.80k vehicles by 2028.
Furthermore, the volume weighted average price of Passenger Cars market in South Africa is expected to be €26.28k in 2024.
When considering market share, Volkswagen is projected to have one of the highest market shares in the selected region, with a vehicle unit sales share of 21.0% in 2024.
Additionally, the value market share of the Volkswagen brand in the selected region is expected to be 20.6% in 2024.
From an international perspective, it is interesting to note that United States is expected to generate the most revenue in the Passenger Cars market, with a projected revenue of €517bn in 2024.

"South Africa's passenger car market is experiencing a surge in demand for eco-friendly and electric vehicles."

Key regions: United States, Germany, Europe, China, India

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Analyst Opinion

The Passenger Cars market in South Africa has been experiencing significant growth in recent years.

Customer preferences: One key factor driving the growth of the Passenger Cars market in South Africa is the increasing demand for more fuel-efficient vehicles. With rising fuel prices and growing environmental concerns, consumers are becoming more conscious of their carbon footprint and are opting for vehicles that offer better fuel efficiency. Additionally, there is a growing trend towards smaller, compact cars that are easier to maneuver in urban areas and have lower maintenance costs.

Trends in the market: Another trend in the Passenger Cars market in South Africa is the rising popularity of SUVs and crossover vehicles. These vehicles offer a combination of space, comfort, and off-road capabilities, making them attractive to a wide range of consumers. As a result, many automakers have expanded their SUV and crossover offerings in the South African market to cater to this growing demand.

Local special circumstances: One of the unique factors influencing the Passenger Cars market in South Africa is the high import tariffs and taxes on vehicles. This has led to higher prices for imported vehicles, making them less affordable for many consumers. As a result, there is a strong preference for locally manufactured vehicles, which are not subject to these import taxes. This has led to the growth of the local automotive industry and the production of more affordable vehicles for the South African market.

Underlying macroeconomic factors: The growth of the Passenger Cars market in South Africa can also be attributed to the improving economic conditions in the country. As the economy continues to recover from the global financial crisis, consumers have more disposable income to spend on big-ticket items like cars. Additionally, low interest rates and favorable financing options have made it easier for consumers to purchase new vehicles. In conclusion, the Passenger Cars market in South Africa is experiencing growth due to changing customer preferences, including a demand for more fuel-efficient vehicles and the popularity of SUVs and crossover vehicles. The local special circumstances, such as high import tariffs and taxes, have also contributed to the growth of the local automotive industry. Finally, the improving economic conditions in South Africa have provided consumers with more disposable income and favorable financing options, further driving the growth of the market.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).