{"id":804796,"date":"2024-12-29T12:00:00","date_gmt":"2024-12-29T10:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=804796"},"modified":"2024-12-27T12:36:21","modified_gmt":"2024-12-27T10:36:21","slug":"big-shift-in-cars-that-hold-their-value-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/motoring\/804796\/big-shift-in-cars-that-hold-their-value-in-south-africa\/","title":{"rendered":"Big shift in cars that hold their value in South Africa"},"content":{"rendered":"\n

Indian- and Chinese-built cars are redefining the South African automotive landscape, with affordability emerging as a driving factor behind a significant shift in vehicle value retention. <\/p>\n\n\n\n

According to market intelligence group Lightstone<\/a>, cars manufactured on the South Asian sub-continent from brands like Suzuki and Toyota, and other like French\u00a0multinational\u00a0automobile manufacturer Renault are set to outshine others in terms of holding their value. <\/p>\n\n\n\n

This trend has been shaped by consumer choices, particularly in the under-R300,000 segment, which has become a focal point of the market.<\/p>\n\n\n\n

Cars produced on the South Asian subcontinent accounted for an impressive 70% of the 108,000 light vehicles sold in South Africa for under R300,000. <\/p>\n\n\n\n

Suzuki dominated this segment with a 43% share, followed by Renault at 19% and Toyota at 17%.<\/p>\n\n\n\n

Lightstone\u2019s residual value forecasting tool highlights the attractiveness of these Indian-built vehicles, predicting an average value retention rate of 86% for 2025. <\/p>\n\n\n\n

For context, a car purchased for R300,000 in this category would still be worth approximately R258,000 after a year, assuming average mileage and maintenance. <\/p>\n\n\n\n

This minimal depreciation, a mere 14% loss, underscores why Indian-built cars are capturing the attention of budget-conscious South Africans.<\/p>\n\n\n\n

Close behind are locally manufactured vehicles, which boast a retention rate of 85.8%, showcasing the strength of South Africa\u2019s domestic automotive industry. <\/p>\n\n\n\n

Chinese-built cars are also making strides, with a projected retention rate of 83.9%, followed by South Korean vehicles at 83.6%. <\/p>\n\n\n\n

These forecasts are provided that the vehicles are within the average mileage and condition parameters for their age.<\/p>\n\n\n\n

These figures reflect a broader trend where affordability and quality are increasingly aligning, allowing a more diverse range of consumers access to durable and cost-effective vehicles.<\/p>\n\n\n\n

The surge in interest in Indian- and Chinese-made vehicles comes against the backdrop of a challenging economic environment. <\/p>\n\n\n

\n
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Suzuki Fronx <\/em><\/figcaption><\/figure><\/div>\n\n\n

In 2024, South African car prices have risen at rates well above inflation, exacerbating affordability issues for many consumers. <\/p>\n\n\n\n

Industry experts attribute these price increases to a combination of global and local factors, including supply chain disruptions, the depreciation of the rand, and rising input costs for materials and manufacturing. <\/p>\n\n\n\n

Additionally, stringent emissions regulations and increased import duties have compounded the cost pressures, leaving buyers with fewer affordable options in the new car market.<\/p>\n\n\n\n

This dynamic has made value retention an essential consideration for buyers. <\/p>\n\n\n\n

Cars that hold their value well not only offer better returns when resold but also provide a buffer against the steep financial hit typically associated with new vehicle purchases. <\/p>\n\n\n\n

Indian-built cars have emerged as a clear winner in this regard, blending affordability with strong resale prospects. <\/p>\n\n\n\n

Their increasing popularity underscores a shift in consumer priorities, with South Africans placing greater emphasis on long-term cost-effectiveness.<\/p>\n\n\n\n

Chinese-built vehicles are also gaining ground, thanks to improvements in build quality and competitive pricing strategies. <\/p>\n\n\n\n

Once met with scepticism, these cars are now recognised as viable alternatives in a market where every rand counts. <\/p>\n\n\n\n

The convergence of affordability and reliability in Indian and Chinese models is reshaping South Africa\u2019s automotive landscape, offering a glimpse into the future of value-driven mobility.<\/p>\n\n\n\n

As economic pressures persist, the appeal of cars that combine reasonable purchase prices with robust resale value is unlikely to diminish. <\/p>\n\n\n\n

This trend marks a turning point for South Africa\u2019s car market, highlighting the pivotal role of affordability in shaping consumer decisions and the broader automotive ecosystem.<\/p>\n\n\n\n

\n\n\n\n

Read: Diesel ban in South Africa still coming<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Affordability is driving a new trend for cars that could hold their value the best in South Africa. <\/p>\n","protected":false},"author":92,"featured_media":681373,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11119],"tags":[4745,7421,10628,853,12466,2041],"class_list":["post-804796","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-motoring","tag-cars","tag-lightstone","tag-renault","tag-south-africa","tag-suzuki","tag-toyota"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/804796","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/92"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=804796"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/804796\/revisions"}],"predecessor-version":[{"id":805037,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/804796\/revisions\/805037"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/681373"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=804796"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=804796"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=804796"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}