Luxury car brands lose ground in SA as Chinese rivals surge and buyers trade down

Premium car brands in South Africa continue to feel the heat as Chinese brands muscle in and consumers follow a buy-down trend.

As the new vehicle industry celebrated its highest sales total for February in 13 years, a comparison against data from 2013 reveals how premium marques have plummeted in South Africa.

Automotive business council Naamsa recorded 53,455 units last month, 37,576 of which were passenger cars.

German, British and Swedish luxury nameplates that were once top 10 players are selling considerably fewer units than they did previously.

Volkswagen’s upmarket division Audi and Mercedes-Benz are among the hardest hit. In February 2013 Audi sold 1,512 cars, while the three-pointed star brand recorded 1,574 local sales. Last month the brands mustered 319 and 459 units, respectively.

Business Times approached the companies with questions on sustainability amid the reduced volumes, as well as the topic of rationalising dealership networks and growth prospects.

Audi

Audi said it would be outlining its way forward in a media briefing next month.

Mercedes-Benz

Mercedes-Benz, which continues to build the C-Class in East London for local and export markets, claimed its retail network remained stable with 36 dealerships. Acknowledging new entrants from China, the company said its long-standing market presence, local investment and customer trust could not be easily replicated. The C-Class and GLC were identified as anchors of its sales performance.

BMW

Fellow German manufacturer BMW Group, which produces the X3 in Tshwane, has also seen a significant decline, though it still manages volumes in excess of 1,000 units. Last month it reported 1,237 units, a figure including BMW and MINI vehicles. During the same month in 2013, it sold 2,423 cars — of which 1,075 were 3 Series models that were locally built at the time.

The company said it “carefully managed our operational footprint” to keep its network of 47 dealerships sustainable. “More than 50 years of heritage in South Africa, including local vehicle production, has helped build deep trust with customers,” it said in a statement.

To bolster sales, BMW recently introduced more attainable versions of the 1 Series, X1 and X3, dubbed Pure Design editions. The brand said its financial services division supported resilient performance by offering flexible ownership options, including guaranteed future values.

Speaking at a separate briefing earlier this year, CEO Peter van Binsbergen was not dismissive of Chinese options in the market.

Of the brands surveyed, Toyota’s high-end Lexus division was the only marque to buck the downward trend — with 67 units in February 2013, to 125 cars last month

“We are studying these brands in great detail to analyse what makes them strong or not, focusing more on our strengths rather than others’ weaknesses, improving our offerings — but it would be arrogant to say we are immune,” he said.

Van Binsbergen said that based on feedback from some of the brand’s dealers, there were numerous customers who decided to “put a foot in the water” elsewhere and soon opted to return to BMW ownership.

Porsche

Porsche maintained triple digits, selling 113 cars last month, 37 fewer than the same month in 2013. It said its best-seller was the Cayenne and hinted at a possible expansion of its retail network, which totals four outlets across South Africa. The brand said it does not consider Chinese cars as a threat to its market share.

Jaguar Land Rover

In February 2013 Jaguar Land Rover ranked ninth in the country overall with a sales figure of 824 units; last month it reported 229 cars sold. The British importer declined the opportunity to comment but confirmed it has 19 dealers active.

Volvo

Swedish contender Volvo last month sold 82 cars, less than half of the 211-unit figure it achieved in the same period 13 years ago.

Grant Locke, MD for the firm, said a portion of the decline was attributable to the phased withdrawal of diesel powertrains and the discontinuation of historically strong volume models such as the V40 and S60. In 2025 it rationalised its dealership network and currently has nine retailers, down from as many as 23 in 2013.

Locke said there are plans to expand to 11 by the end of 2026, on the back of a revitalisation strategy that includes new executive appointments, reinvestment in promotional activities and additional products.

“Our objective is to restore scale responsibly, strengthen dealer economics and reinforce Volvo’s premium position in South Africa,” he said. The XC60 sport-utility vehicle was its best-seller in 2025.

“Volvo Cars operates within a clearly defined premium segment, differentiated by safety leadership, Scandinavian design principles and a strong sustainability agenda.”

Lexus

Of the brands surveyed, Toyota’s high-end Lexus division was the only marque to buck the downward trend — with 67 units in February 2013, to 125 cars last month.

PR manager Riaan Esterhuysen said a strong emphasis on customer retention and aligning the product offering to market trends — such as the increasing popularity of sport-utility vehicles — put Lexus on a good footing.

Its total dealer footprint is 14, and the best-seller is the GX 4x4, which is based on the Toyota Land Cruiser Prado.

He said the Lexus brand identity is built around craftsmanship, reliability, luxury and exceptional customer experience, dismissing the idea that Chinese brands pose a direct threat.

While overall new vehicle sales have shown encouraging momentum recently, the market remains highly competitive and price sensitive, with many buyers focused on value and affordability

—   National Automobile Dealers’ Association

The National Automobile Dealers’ Association (Nada) said the performance of different vehicle segments in South Africa reflected broader economic dynamics and changing consumer priorities.

“While overall new vehicle sales have shown encouraging momentum recently, the market remains highly competitive and price sensitive, with many buyers focused on value and affordability,” it said in a statement.

Commenting on the added choice and competition brought by Chinese firms, Nada said it would be premature to suggest that traditional premium manufacturers are under threat, backed by “brand equity, loyal customer bases and well-developed dealer networks”.

Asked about dealers of legacy premium brands exploring additional franchise opportunities to make up for declining volumes, Nada said such moves were part of the “natural evolution of a dynamic and competitive automotive sector”.

“From a retail perspective, franchise dealerships typically operate across multiple segments and are accustomed to adapting to changing market conditions.”

SA’s top-selling car brands February 2013

Market total: 53,179 vehicles

• Toyota: 11,027
• VW Group: 9,100
• Nissan: 4,703
• Ford: 4,556
• General Motors: 4,545
• BMW Group: 2,423
• Mercedes-Benz: 2,174
• Honda: 1,325
• Jaguar Land Rover: 824
• Chrysler: 810

SA’s top-selling car brands February 2026

Market total: 53,455 vehicles

• Toyota: 12,272
• Suzuki: 6,562
• VW Group: 4,895
• Hyundai: 3,136
• Ford: 2,928
• GWM: 2,614
• Isuzu: 2,371
• Chery: 2,312
• Mahindra: 1,996
• Kia: 1,746