In anticipation of DealerCon 2025, Brandon Cohen (photo), Chairperson of the National Automobile Dealers’ Association (NADA) of South Africa, emphasised the critical role of the upcoming summit in empowering automotive dealers amid significant market shifts.
Speaking from the Cars.co.za studio in Johannesburg, Brandon underscored DealerCon's unique position as an industry event focused on dealer-centric content, a departure from the current launch-dominated landscape.
He highlighted the primary challenge facing South African dealers: the financial constraints of consumers. However, he identified substantial opportunities emerging from the expansion of Chinese automotive brands into the South African market, new approaches from traditional brands and the increased availability of stock in the used car sector.
Brandon referenced the NADA Dealer Satisfaction Index (DSI) survey, which consistently shows strong performance for Chinese brands among South African consumers. This trend is further supported by recent market analysis indicating a significant increase in market share for Chinese manufacturers, growing from 2% in 2019 to 9% by July 2024.
The influx of new Chinese brands, with nearly half of those currently active in South Africa having launched in the past year, is contributing to a highly diversified automotive offering, with over 50 different vehicle brands now present in the country. This diversification, he noted, presents a unique opportunity for consumers and dealers alike.
NADA plays a crucial role in supporting dealers and serving the consumer by promoting trust and transparency within the industry. As purchasing a vehicle is one of the most significant investments a consumer can make, NADA advocates for every transaction to be handled with the utmost professionalism and care. The association acts as a vital safeguard for dealers, protecting them from opportunistic players and ensuring ethical practices.
A key initiative in this regard is NADA's formalised partnership with Absa. This collaboration aims to address and overcome challenges related to accessing finance for dealer members, ultimately streamlining the purchasing process for consumers.
Brandon encouraged dealers to attend DealerCon 2025 to gain invaluable insights, knowledge and power. He concluded by highlighting the changing nature of customer interactions, noting that today's consumers were highly informed and could exhibit confirmation bias, posing new challenges for dealers in closing sales.
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I have bad reflexes. I was once run over by a car being pushed by two guys
Woody Allen
Pinewood.AI has added two new embedded modules to its Business Intelligence Solution, giving dealers and OEMs greater insight into financial performance and the customer journey, it says.
Margins are shrinking, customers are under financial strain, and competition is intensifying across South Africa’s motor retail sector. Against this backdrop, dealerships are being forced to rethink how they remain profitable while still building customer trust and long term sustainability.
Ford will launch seven new models in Europe by 2029, it announced recently, as it seeks to grow its flagging passenger car sales, fend off fierce competition from Chinese rivals and maintain an edge in the continent's commercial vehicle market.
