Affordability is driving a structural shift in South Africa’s vehicle market, with sports-utility vehicles (SUVs) gaining significant ground as consumers increasingly seek competitively priced, well-equipped vehicles, says Absa Vehicle and Asset Finance (AVAF).

An analysis of 2.56-million new- and used-vehicle finance applications processed by AVAF between January 2023 and June this year shows that SUVs increased their share of the combined SUV, bakkie and body-on-frame SUV market from 60.2% in the second quarter of 2023, to 67.6% in the second quarter of this year.

SUV finance applications grew 38% between 2023 and 2025, while bakkie and body-on-frame SUV volumes remained relatively stable.

By the second quarter of this year, bakkies accounted for 28.9% of the three segments analysed, compared with 36.3% three years earlier, while body-on-frame SUVs were at 3.6%, down from 5%.

This growth in SUVs has been supported by stable pricing, says AVAF.

The average SUV finance application value increased by only 0.6% over the period, from around R350 000 to R353 000.

By comparison, the average bakkie application value rose by almost 20%, from around R375 000 to R448 000, while body-on-frame SUVs increased by 14% to around R564 000.

Chinese vehicle brands have played a significant role in this shift, increasing their share of SUV finance applications from 19% in 2023, to 40% this year.

According the AVAF, these brands’ growing presence has introduced greater competition and helped to maintain accessible pricing in the SUV category.

Chinese brands have also more than doubled their share of bakkie applications, from 4.4% to 11.2%, although established manufacturers continue to lead the segment.

“South African consumers are increasingly assessing the overall value offered by a vehicle, including price, features and suitability for their lifestyle,” says AVAF managing executive Charl Potgieter.

“Greater competition in the SUV segment is giving customers more choice at accessible price points and is changing the composition of the market.”

The Half-ton Bakkie Conundrum
While overall bakkie volumes have remained relatively stable, the composition of the segment is changing.

Double cabs now account for 65% of bakkie finance applications, up from 58% in 2023, reinforcing their position as the dominant bakkie configuration.

At the same time, the half-ton bakkie’s share has declined from about 15% to 7%.

AVAF’s customer transition data indicates that former half-ton owners generally did not move to larger bakkies.

Instead, 49% moved outside the bakkie and SUV categories, with hatchbacks becoming the most common next purchase.

“The decline of the half-ton segment has created a clear affordability gap for customers who need practical, entry-level mobility,” says Potgieter.

“Many of these buyers are choosing hatchbacks, sedans and panel vans rather than moving into more expensive bakkies.”

Across the broader market, SUVs recorded the strongest customer retention, with 55% of existing SUV customers purchasing another SUV.

Bakkie retention stood at 45%, while body-on-frame SUV customers were more evenly split between buying another body-on-frame SUV, moving to a bakkie or switching to an SUV.