2023 has been off to a rapid start in the automotive world with several trends emerging that hint at how South Africans will spend their car-buying budgets this year.
Price is anticipated to be a more sensitive issue than usual, new-energy vehicle (NEV) adoption is still expected to lag, and fresh competitors are looking to dethrone tried-and-trusted brands.
Pre-owned car platform Motus Select highlights the inclinations that will shape motorists’ decisions in 2023 and beyond.
Price is important
The negative economic impacts of the Covid-19 pandemic are still rippling through consumer wallets, being exacerbated by skyrocketing living costs brought about by rising interest rates and fuel prices.
Subsequently, many individuals are stricter than ever when it comes to their hard-earned money and are actively seeking out bargains and deals to limit spending.
They are also starting to weigh the benefits and drawbacks of buying new or used more carefully, considering that a new car is usually cheaper to run but demands higher insurance and maintenance payments.
“These additional costs can all have a significant impact on future buying decisions,” said Motus. “Dealerships must be able to validate the prices in their inventory to provide you with a viable purchase.”
Fresh faces and fierce feuds
The emergence of new brands, specifically from Asia, including China’s BAIC, Chery, Haval, and JAC, Malaysia’s Proton, and India’s Force Motors, has seen many legacy companies with long histories in South Africa take a knock in market share.
These newcomers generally offer comparable looks and features at a far friendlier price than the established players at a time when saving money is the main goal of many households.
“This trend will benefit consumers in the long run because, with more options on the market, prices will start becoming more competitive,” said Motus.
“Major brands will have to start becoming more appealing and more affordable to the average buyer to compete with newer brands offering similar value.”
However, simply being cheaper than your closest rival isn’t going to cut it anymore in the future.
Big-ticket items like a vehicle are becoming trickier to purchase as consumers want value not only for now but for many years to come.
“Low maintenance costs and an even lower price tag are appealing, but how long will a vehicle last? What is going to offer the best value for years to come?” said Motus.
These questions will play a big role in final decisions going forward, as consumers are now more than ever buying for the future.
NEVs to remain out of reach, for now
Many new NEVs entered the market in 2022 across hybrid, plug-in hybrid, and fully-electric segments, and more are expected to arrive in 2023.
However, the increased NEV presence has not necessarily translated to these cars being more accessible, as even the “most affordable luxury EV” in the country is out of budget for the vast majority of car buyers.
“While most consumers are well aware of the benefits of EVs and hybrids, they are simply not priced at a level most of us South Africans can afford,” said Motus.
“At Motus Select, we expect to see more competition in this sector hit the market in the next few years, giving many the opportunity to purchase one.”
Keyword: Car trends taking South Africa by storm