South Africans paying up to R240,000 more for the cheapest Audi, BMW, and Mercedes

 ·22 Jan 2025

South Africans have seen massive price increases for entry-level luxury cars like the Audi A1, BMW 1 Series, and Mercedes-Benz A-Class.

These cars, which used to be somewhat affordable for higher middle-income families, are now so expensive that only the wealthiest buyers can afford them.

At current prices, South Africans need to be in the top 10% of income earners to afford these vehicles.

This means that 90% of the population earns less than this threshold, highlighting how exclusive it has become to own even the cheapest models from these premium brands.

Over the last year, car prices in many categories have increased significantly.

Hatchbacks, which are often the cheapest cars from luxury brands, have had some of the biggest jumps, with prices rising by 7.6%.

Hybrids also increased by 4.6%, while SUVs and electric cars had smaller increases of 2.7% and 1.1%, respectively.

The Audi A1, BMW 1 Series, and Mercedes-Benz A-Class show how much prices have climbed.

The Audi A1 now costs R523,200, which is 18.6% more than its price of R441,000 in 2021. BMW’s 1 Series is now R713,395, a 29% increase from R553,220 in 2021.

The Mercedes-Benz A-Class has seen the biggest jump. It now costs R826,024, which is 41% more than the R585,960 price tag it had three years ago.

These increases are much higher than inflation, especially for BMW and Mercedes-Benz, which went far beyond the 20% inflation rate over the same period.

The long-term trends also paint a stark picture of escalating costs.

For instance, a Mercedes-Benz GLA200 that cost R400,000 in 2014 now costs R926,703, marking a staggering 131.4% increase in just 10 years.

There are several reasons for these price hikes.

One big reason is the weak South African rand, which makes importing cars and car parts more expensive.

The country’s slow economy has also played a role. On top of that, carmakers are adding new technology, like better safety features and high-tech systems, which raises manufacturing costs.

Additionally, South Africa has raised import duties and taxes on vehicles, making imported cars more expensive. This policy aims to protect local industries but results in higher prices for consumers.

Manufacturers have also incorporated more advanced safety features and technology into new models, which raises production costs and, consequently, retail prices.


Audi A1 Sportback 30TFSI Advanced

  • 2021 price: R441,000
  • 2025 price: R523,200
  • Change: R82,200 (18.64%)

BMW 1 Series 118

  • 2021 price: R553,220
  • 2025 price: R713,395
  • Change: R160,175 (28.95%)

Mercedes Benz A-Class A200 Progressive

  • 2021 price: R585,960
  • 2025 price: R826,024
  • Change: R240,064 (40.96%)
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