Despite global shifts toward alternative mobility, South African millennials are driving the local car market, with young people under 35 accounting for 45% of WesBank’s customer base. This insight was shared by Declan Jones, Head of Vehicle Ecosystem Development at WesBank, at the 2025 Festival of Motoring held at Kyalami Grand Prix Circuit.

Jones highlighted the ongoing trend of consumers seeking affordability, which has led to longer finance terms. In July 2025, the average repayment period was 72 months for new cars and 76 months for used cars.

Highlighting trends in the New Energy Vehicles (NEVs) space, Jones said that the market for pre-owned New Energy Vehicles (NEVs) is growing despite stock limitations, which is a key indicator of the country's evolving vehicle landscape and consumer preferences.

From January 2022 to July 2025, WesBank financed 287 battery electric vehicles (BEVs). While new cars made up 51% of that figure, the used market, including demo and pre-owned vehicles, accounted for the remaining 49%.

"Tracking the NEV market in its entirety, including pre-owned vehicles, is critical for future planning, from the rollout of charging infrastructure to potential incentives," said Jones. He also noted the importance of the used market in providing an affordable entry point for interested consumers who have been restricted by affordability challenges.

Commenting on the growth of Chinese car brands locally, Jones said that these brands have not yet reached maturity. A mature market would see the new-to-used car ratio mirror that of the broader industry, where pre-owned vehicles outsell new ones by a ratio of 2.36 to 1.

In a recorded message, NADA Chairperson Brendon Cohen shared his perspective, describing 2025 as a strong year for local car dealers. He attributed the positive performance to the influx of new brands, a healthy supply of new and used inventory, steady fuel prices, interest rate cuts, and a relatively stable socio-economic environment.

Despite the buoyant market, Cohen noted that consumers remain under financial strain, making the sub-R400,000 vehicle segment the leader in buying activity.

Looking ahead, Cohen anticipates that ongoing economic pressure and global trade uncertainty will lead to muted growth in the sector. "In the absence of any major shocks, we should see sustained growth despite the relatively slow pace," he concluded.