Market Size of South Africa Used Car Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 17.87 Billion |
| Market Size (2029) | USD 29.41 Billion |
| CAGR (2024 - 2029) | 10.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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South Africa Used Car Market Analysis
The South Africa Used Car Market size is estimated at USD 17.87 billion in 2024, and is expected to reach USD 29.41 billion by 2029, growing at a CAGR of 10.5% during the forecast period (2024-2029).
Economic conditions, consumer sentiment, and government policies regarding the automotive sector influence the market size. The importation of second-hand vehicles also influences the South African used car market.
One key factor driving the growth of the organized used car market in South Africa is the increasing preference for certified and pre-inspected used cars. These cars undergo a thorough inspection and certification process to ensure their quality and reliability, giving buyers peace of mind when purchasing.
Another trend in the South African organized used car market is the growing popularity of online platforms for buying and selling used cars. These platforms offer a convenient and transparent way for buyers and sellers to connect, negotiate, and finalize transactions. Online platforms are also more cost-effective than traditional dealerships, as they have lower overheads and can offer competitive pricing.
Additional market expansion factors include rising disposable income, shorter car ownership durations, rising consumer demand for luxury automobiles, a growing inclination among two-wheeler owners to upgrade to tiny and compact cars, and expanding import-export.
South Africa Used Car Industry Segmentation
A used car is a resale vehicle that has been previously owned. Used cars are sold through various outlets, either offline or online.
The South African used car market is segmented by vendor type, fuel type, vehicle type, and sales channel. By vendor type, the market is segmented into organized and unorganized. By fuel type, the market is segmented into petrol, diesel, and others. By vehicle type, the market is segmented into hatchbacks, sedans, sports utility vehicles (SUVs), and multi-purpose vehicles (MPVs). By sales channel, the market is segmented into online and offline. The report covers the market size and forecasts the value (USD) for all the above segments.
| By Vehicle Type | |
| Hatchbacks | |
| Sedans | |
| Sports Utility Vehicles (SUVs) and Multi-Purpose Vehicles (MPVs) |
| By Fuel Type | |
| Petrol | |
| Diesel | |
| Others |
| By Booking Type | |
| Online | |
| Offline |
| By Vendor Type | |
| Organized | |
| Unorganized |
South Africa Used Car Market Size Summary
The South African used car market is experiencing significant growth, driven by various economic and consumer trends. The market is influenced by factors such as economic conditions, consumer sentiment, and government policies, alongside the importation of second-hand vehicles. A notable trend is the increasing preference for certified and pre-inspected used cars, which offer buyers assurance regarding quality and reliability. Additionally, the rise of online platforms for buying and selling used cars is transforming the market, providing a convenient and cost-effective alternative to traditional dealerships. These platforms facilitate easier transactions and offer competitive pricing due to lower overhead costs. The market's expansion is further supported by rising disposable incomes, shorter car ownership durations, and a growing demand for luxury vehicles.
The South African used car market is characterized by both organized and unorganized segments. The organized market is gaining traction due to the benefits of transparency and consumer protection, while the unorganized market, despite its challenges, remains popular due to lower prices and flexibility. However, issues such as lack of transparency, safety concerns, and the cash-based nature of the unorganized market pose risks to consumers. The e-commerce sector's growth is significantly impacting the used car market, with online marketplaces offering a wide range of vehicles and convenient shopping experiences. Despite some trust issues and potential scams, improvements in regulation and seller transparency are addressing these concerns. The market is fragmented, with several key players and new entrants actively expanding their operations and offerings, further fueling growth.
South Africa Used Car Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 The Increasing Use of Online Platforms
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1.3 Market Restraints
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1.3.1 Stringent Governmental Regulations and Import Taxes Restrict the Market Growth
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1.4 Porter's Five Forces Analysis
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1.4.1 Threat of New Entrants
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1.4.2 Bargaining Power of Buyers/Consumers
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1.4.3 Bargaining Power of Suppliers
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 By Vehicle Type
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2.1.1 Hatchbacks
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2.1.2 Sedans
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2.1.3 Sports Utility Vehicles (SUVs) and Multi-Purpose Vehicles (MPVs)
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2.2 By Fuel Type
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2.2.1 Petrol
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2.2.2 Diesel
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2.2.3 Others
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2.3 By Booking Type
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2.3.1 Online
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2.3.2 Offline
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2.4 By Vendor Type
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2.4.1 Organized
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2.4.2 Unorganized
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South Africa Used Car Market Size FAQs
How big is the South Africa Used Car Market?
The South Africa Used Car Market size is expected to reach USD 17.87 billion in 2024 and grow at a CAGR of 10.5% to reach USD 29.41 billion by 2029.
What is the current South Africa Used Car Market size?
In 2024, the South Africa Used Car Market size is expected to reach USD 17.87 billion.
