The South African automotive market is experiencing significant changes as consumer behaviors shift amid a challenging economic landscape. According to a recent report by Rogerwilco and YOUKNOW, while new car sales declined by 3% in 2024, passenger vehicle sales saw an increase of 1.1%, signaling evolving preferences among buyers.
As economic pressures, such as a VAT hike, continue to affect purchasing power, interest in automotive brands remains robust. AutoTrader's data reveals that VW (Volkswagen) was the most-searched brand in the past year, with an impressive 81,053,923 searches, or roughly 2.6 searches per second. Close contenders include BMW, with 79,299,132 searches, and Toyota with 71,047,526 searches. Overall, AutoTrader recorded over 663 million searches throughout 2024, reflecting a staggering 42% increase from 2023, highlighting a sustained passion for cars among South Africans, despite economic constraints.
Mongezi Mtati, senior brand manager at Rogerwilco, notes, "Digital consumer trends mirror the shifts in car sales, with a 3% decline in automotive mentions and a 3% drop in online discussions about car brands. However, search visibility continues to drive market momentum.” This statement underscores the complex interaction between market dynamics and consumer interest.
The report emphasizes the growing significance of social sentiment in shaping brand perception. While it may not be a direct predictor of sales, the correlation between social mentions and actual market performance is increasingly apparent. "What people are saying online can forecast sales results, which is incredibly powerful data to unearth. We’re seeing that play out with disruptors and legacy brands alike," remarked Shaun Pearson, product owner and insights analyst at YOUKNOW.
Brands like Volkswagen, Toyota, and Suzuki have effectively leveraged their digital engagement strategies to convert online visibility into sales. The allure of affordable luxury is becoming increasingly important, as evidenced by the rise of challenger brands like Omoda and Jaecoo, who collectively sold 655 units in December 2024. Jaecoo enjoyed 81% positive mentions on social media, while Omoda recorded 79%, demonstrating a shift towards quality and affordability.
Bobby Ramagwede, CEO of the Automobile Association of South Africa, remarked, "Where I see a big shift is in not so much the notion of vehicle ownership, but which cars are being bought. I think we’re going to see a lot more utilitarian use of vehicles. This is largely driven by affordability." His comments reflect broader trends in consumer behavior, with many opting for vehicles that serve practical needs.
Equally important is the acknowledgment that visibility alone is not enough to secure sales. Oresti Patricios, CEO of Ornico, stated, “You can advertise as much as you like, but if your customer experience across the board isn’t good, you’ve got a problem.” Their analysis suggests that brands must focus on creating engaging content, building consumer trust, and ensuring quality customer service.
Moreover, influencer marketing is highlighted as a key strategy for engaging potential customers. Campaigns involving collaborations with influencers, such as Subaru’s work with Liyema Pantsi, are seen as essential for boosting visibility. However, the long-term success of such partnerships relies on sustained community engagement and support. As Pearson notes, "In an ideal world you’d launch with a big announcement, then nurture and sustain that engagement through influencers, ongoing community management and other touchpoints in the digital ecosystem.”
A shift towards more active consumer dialogue is crucial. Brands need to follow the consumer journey from search to social media interactions, facilitating trust and transparency. “It’s not enough to build a digital presence through search alone; you need native engagement. When consumers come into the community, they need to feel an element of trust and transparency – that there’s a human behind the brand,” Pearson emphasizes.
In summary, the South African automotive market is navigating a transformative period characterized by changing consumer priorities and digital engagement strategies. Mtati concludes, “The South African automotive market is evolving, with search trends and social sentiment emerging as key indicators of market strength.” Brands that are able to harness data-driven insights, engage proactively with their communities, and tell their stories authentically will be best positioned to lead the next phase of growth in an increasingly competitive industry.
For a deeper dive into these findings, the complete report is available for download, offering automotive marketers a strategic playbook to turn insights into actionable engagement strategies capable of improving visibility and driving sales.
