The year 2024 was a successful one for the automotive industry, with strong sales in the new and used vehicle industries. Several positive developments in the last few months – falling interest rates, lower fuel prices and more – make 2025 look promising. Here are several trends dealers can use to implement strategies, cater to customers' needs and boost sales.

• EVs and hybrids are gaining ground:

Data from AutoTrader reveals that sales of used battery-electric vehicles have increased significantly, with 540 units sold last year. That’s considerably more than the 309 EVs sold in 2023, and the arrival of more electric cars in South Africa will encourage adoption among consumers. While the average price of EVs has fallen by R159 896, the current average selling price of R1 031 380 is still significantly higher than the ordinary consumer can afford. Still, this shows positive sentiment regarding EVs.

Electrically assisted drivetrains are becoming increasingly popular as consumers seek to reduce fuel bills. In 2023, 1,469 hybrids were sold, nearly doubling their number, with 2,774 units purchased in 2024. Again, the average price of a hybrid has fallen by R147,256 owing to more affordable options, like the Toyota Corolla Cross hybrid and Haval Jolion Pro HEV.

Electric and hybrid vehicle sales are expected to surge in the coming years, driven by a significant policy shift in South Africa. In December 2024, President Cyril Ramaphosa signed a tax incentive into law to encourage manufacturers to produce electric vehicles locally. Chinese automakers, already achieving strong regional sales, are poised to invest approximately $27 billion in the South African automotive industry.

• Greater EV and hybrid growth expected in the future:

While hybrids and electric vehicles remain niche products in the more significant automotive industry, dealers should consider offering these vehicles more regularly to meet the growing consumer demand for electric cars.

"These numbers reflect a growing interest in electrified mobility, with consumers increasingly drawn to the benefits of reducing fuel costs and embracing greener technology,” commented George Mienie, CEO of AutoTrader. “While affordability remains a challenge, the rising sales and views indicate a shift in mindset that dealerships should capitalise on by incorporating more electric and hybrid vehicles into their offerings."

• Combustion remains king - SA loves petrol and diesel:

Sales of combustion-engined (ICE) vehicles have remained strong, although there has been a minor decline in sales compared to last year. In 2023, some 353 212 ICE vehicles were sold, which is 1.95% more than last year’s figure of 346 387. Interestingly, the average sale price has increased by 2.12% to R459 466, bucking the trend seen with EVs and hybrids. ICE vehicles garnered views of 67 447 212, 10.47% higher than in 2023, showing that consumers are strongly interested in purchasing a car.

"The steady demand for ICE vehicles, coupled with a rise in average sale prices and quicker turnaround times, highlights their enduring appeal among consumers," he adds. "This sustained interest, reflected in the significant increase in online views, shows that traditional vehicles remain a key part of the market."

• The body styles SA consumers love most:

Unsurprisingly, SUVs remain the most sought-after body style, with 123 088 models sold last year – 2 041 more than 2023. SUVs have increased in popularity over the last three decades, outmuscling traditional body styles such as the sedan and hatchback.

Customers don’t mind paying for this, with an average selling price of R570 248—the highest average sale price among the mainstream body types (excluding coupes, fastbacks and roadsters). Interestingly, the average selling price of SUVs has increased by 0.36% compared to 2023’s average cost of R568 164.

The rising popularity of SUVs can be seen in the reduction of other body styles, with hatchback sales sliding by 0.89% compared to last year. Once the dominant type of vehicle, the traditional sedan has fallen by the wayside, with sales declining 13.57% compared to 2023.

• What about bakkies?

Looking at the numbers for double cab bakkies, dealers and consumers may be surprised to find that just 40 568 units were sold in 2024—stronger than 2023’s final figure of 39 231. If you look at the bakkie market, the numbers are even more impressive. Combining sales of double cabs, extended cabs, single cabs, king cabs and super cab body styles for 2024 some 67 737 bakkies were sold last year.

"The steady growth in double cab bakkie sales, alongside strong demand across other bakkie variants, highlights their enduring popularity in the South African market," he says. "Bakkies are deeply ingrained in South Africa’s culture. Their multi-purpose use makes them ideal for work and lifestyle needs or serving as a family vehicle."

• What can be expected in 2025?

The trends shaping the local automotive industry in 2025 point to a rapidly evolving landscape that demands strategic adaptation from dealerships. While ICE vehicles dominate the market, growing interest in electrified mobility and the sustained appeal of versatile body styles like SUVs and bakkies reflect a shift in consumer priorities. For dealerships, this means balancing the tried-and-tested with the emerging.

Dealerships must realise the opportunity presented by the rise of EVs and hybrids, even if these remain niche segments. Early adoption of these vehicles, consumer education and infrastructure support can position retailers as leaders in the eventual transition to green mobility. On the other hand, the enduring appeal of bakkies and SUVs highlights the need to stock vehicles catering to local customers' preferences.

Ultimately, dealerships that understand evolving customer needs and leverage tools like Ratings and Reviews on platforms like AutoTrader to enhance their reputation will thrive in a competitive landscape. Features like dealer ratings and genuine feedback help buyers make informed decisions.

By embracing this transparency, dealers can build trust, improve service quality and foster long-term relationships.