8 major car brands that quit South Africa

Over the last 15 years, many top car brands, including Cadillac, Datsun, Dodge, Chrysler, Chevrolet, Daihatsu, Seat, and Saab, have kissed South Africa goodbye.

The South African economy and automotive industry provide key insights into why several well-known car brands have exited the country.

South Africa’s automotive industry is a major economic sector, accounting for 4.3% of its GDP.

In recent years, several global automakers have expanded their presence locally.

BMW, for instance, committed to exclusively manufacturing the next-generation BMW X3 at its Rosslyn plant in Pretoria.

Similarly, Ford made a significant investment of R15.8 billion in its local manufacturing operations, while Nissan allocated R3 billion to produce its new Navara model at its Pretoria plant.

Toyota also invested R6.1 billion to boost production of its Hilux and Fortuner models in Durban, and Volkswagen earmarked R4.5 billion for new models and infrastructure at its Uitenhage facility.

Beijing Automobile International Corporation (BAIC) also entered the market, investing R11 billion in a new vehicle manufacturing plant.

These efforts have made brands like Toyota, Volkswagen, Nissan, and Ford dominant in South African car sales.

According to the National Association of Automobile Manufacturers of South Africa (Naamsa), Toyota led in sales in September 2024 with 10,890 vehicles, followed by Volkswagen with 5,885, Suzuki with 5,032, and Hyundai with 2,841. The Toyota Hilux, Ford Ranger, and Toyota Corolla Cross are among the most popular models.

The strong consumer loyalty to established, locally manufactured brands poses a challenge for new international entrants.

Combined with South Africa’s sluggish economic growth and complex business environment, it is clear why some international brands struggle to succeed.

Brands such as Saab and Cadillac, which target wealthier buyers, have been unable to compete with established players like Toyota, BMW, and Ford, ultimately leading to their exit.

Brands that remain, like Suzuki, Hyundai, Chery, and GWM, focus on offering affordable alternatives, which are increasingly becoming the most attractive model for South African motorists.

Chinese manufacturers have exploded in South Africa, and they’re winning.

As of September 2024, South African buyers have 27 Chinese car models to choose from.

Looking ahead, it is estimated that Chinese manufacturers will capture around 20% of the new car market in South Africa by the end of 2024.

Seat

Seat, a Spanish car manufacturer, initially partnered with Fiat in 1982 before Volkswagen (VW) acquired it as a subsidiary in 1986.

Known for its sporty hatchbacks, Seat sought to blend Italian styling with German engineering in models like the Ibiza.

However, Seat’s appeal was overshadowed by competition within its own parent company; its hatchbacks struggled to rival the VW Polo and Golf.

After years of declining production, Seat eventually exited the South African market in 2008.

Although new sales ceased, VW dealerships continued supporting Seat models sold after 2006.

Saab

The Swedish carmaker Saab became defunct globally, leading to its exit from South Africa.

Saab produced well-engineered sedans like the 9-3 and 9-5, often marketed with imagery evoking its aviation roots.

In South Africa, Saab faced stiff competition from luxury brands like BMW and Mercedes-Benz, particularly due to its front-wheel-drive configurations, which were less appealing to South African luxury sedan buyers at the time.

In 2010, Saab’s South African division liquidated, and the few remaining Saab vehicles in the country have since become collectable.

Cadillac

Cadillac, the first major American car brand to leave South Africa, exited as General Motors (GM) pivoted to more profitable markets.

Despite Cadillac’s value proposition—models like the Cadillac CTS delivered German-level performance at lower prices—South African drivers leaned toward German brands like BMW, Audi, and Mercedes-Benz. Cadillac ultimately withdrew in 2010 due to weak sales.

Daihatsu

Known for its reliability, Japanese automaker Daihatsu specialized in compact “Kei-cars” designed for dense urban areas.

The brand offered models such as the Charade, Sirion, and the compact Terios SUV.

In 2015, Daihatsu announced its departure from South Africa, mirroring its retreat from other right-hand-drive markets, including New Zealand and Australia, as the company refocused its efforts on Asia.

Chevrolet

Chevrolet, another casualty of GM’s restructuring, relaunched in South Africa in 1997 but exited after 20 years.

GM sold its minority stake in Isuzu, transferring operations to the bakkie manufacturer and closing its light commercial plant near Gqeberha.

Chevrolet’s withdrawal was attributed to poor returns and a decision to prioritize the U.S. and Chinese markets.

An “identity crisis” further weakened Chevrolet’s position as it shifted from high-profile models like the 4100 in the 1960s to mass-market, affordable vehicles in the 2000s.

Although Chevrolet sales ended in 2018, Isuzu dealerships have continued to provide parts and after-sales support.

Chrysler and Dodge

In 2017, parent company Fiat Chrysler announced it would discontinue Chrysler and Dodge sales in South Africa, following a shift away from right-hand-drive markets.

Sales continued until stock was depleted, while after-sales support remained available at Fiat dealerships.

Fiat Chrysler’s successor, Stellantis, continues to market models under brands like Abarth, Alfa Romeo, Fiat, and Jeep.

Datsun

Datsun re-entered South Africa in 2014 with the budget-friendly Go hatchback but withdrew in June 2022, following similar exits from Russia, Indonesia, and India.

Nissan, Datsun’s parent company, attributed the decision to a broader strategy shift.

Although new Datsun sales have ceased, Nissan continues to offer parts, after-sales service, and warranty support for Datsun owners in South Africa.

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