Speaking at the recent DealerCon, Brandon Cohen (photo), Chairperson of the National Automobile Dealers’ Association (NADA), highlighted the pressures facing South Africa’s new car dealerships and outlined how it was helping members navigate an increasingly complex and competitive market.
With over 1 700 dealerships representing 50 passenger brands, 29 bakkie and commercial brands and over 2 500 model derivatives, dealers retail roughly 84% of the 45 000 – 50 000 new vehicles sold monthly, all while managing high financing levels, evolving consumer expectations and a heavy compliance burden.
“Selling cars in South Africa has never been tougher,” Brandon says. “Dealers face intense competition, tight margins, a complex web of compliance requirements and rapid shifts in consumer behaviour. Yet they remain the backbone of the industry, creating jobs, carrying financial risk and ensuring mobility for millions of South Africans.”
Around 80% of new-vehicle sales are financed, typically over 72 months, with motorists keeping their cars for 45 - 48 months before re-entering the market. The average amount financed is approximately R360 000.
While the broader economy struggles, there are glimmers of good news. Inflation sits at 3.3%, banks have not ruled out further rate cuts, and vehicle finance originations are up 12% year-on-year, with a small but positive decline in delinquencies.
Still, the environment is unforgiving. Dealers must navigate more than 120 different pieces of legislation, all carrying risk if misunderstood or misapplied. Add the acceleration of AI, new-energy vehicles and autonomous driving, and the landscape becomes even more challenging.
Representing 1 562 vehicle dealers, approximately 87% of all new car retailers in South Africa, NADA acts as both guide and advocate for its members. As part of the Retail Motor Industry Organisation (RMI), which represents 8 200 businesses and 173 000 employees, NADA’s influence extends across regulation, policy, labour relations and future-proofing the industry.
“We see our role as being the GPS for dealers,” he explains. “We know the market, track legislation and engage directly with government and regulators so that our members don’t have to fight every battle alone.”
Among NADA’s recent achievements:
The association also runs the annual Dealer Satisfaction Index (DSI), now in its 29th year, allowing dealers to rate their OEM partners. The DSI has been recognised internationally, inspiring colleagues in the USA and Australia.
NADA is equipping dealers for the future by sharing insights on AI, evolving consumer behaviour and changes to vehicle ownership and usage models through conferences and knowledge-sharing initiatives.
“Dealers are incredibly resourceful, but nobody can be everywhere at once. NADA exists to fight for dealers, protect their interests and arm them with the knowledge and tools they need to remain resilient and sustainable well into the future,” Brandon concludes.
BYD and Tesla, two giants of the electric vehicle industry, are navigating diverging challenges. BYD faces mounting competition in China and questions over its pricing strategy, while Tesla grapples with fading incentives and unsold inventory in the United States.
Nissan South Africa has agreed to sell its Rosslyn production facility after 60 years of operation. The plant, which produced models such as the 1400 ‘Champ’ bakkie, NP200 and Navara, was acquired by Chery SA. The Chinese automaker has sold over 80,000 vehicles locally since 2021 and is now strengthening its African presence.
Volvo has commenced on-road testing of heavy trucks powered by hydrogen combustion engines. This pioneering solution places Volvo at the forefront of the industry, with commercial launch planned before 2030.
Advertisement
Advertisement
You can't buy happiness but you can buy cars and that's kind of the same thing.
Unknown
LDV South Africa recently hosted its dealer conference, with representation from dealerships across the country. Among those present was Joy Zhu, Africa Regional Director for SAIC Motor International, reinforcing the brand’s global backing and commitment to growth in South Africa.
BMW Group South Africa hosted its annual Retailer of the Year Awards celebrating the achievements of its national retail network and recognising the retailers who continue to deliver exceptional customer experiences across the country.
Lifting above the currents, Orbit Commercial Vehicles Cape Town was once again named the overall 2025 Dealer of the Year and Elite Class winner for Southern Africa at Daimler Truck Southern Africa’s (DTSA) Dealer of the Year Awards.
