WeBuyCars CEO Faan Van der Walt says South Africa’s used-car market is under mounting structural pressure as an aggressive wave of low-cost, technology-heavy vehicles from Asian manufacturers reshapes pricing, consumer behaviour and resale values, squeezing margins across the entire automotive value chain.The disruption is largely driven by fast-expanding Chinese and broader Asian brands, which have rapidly increased their footprint in the local new vehicle market, intensifying competition and narrowing the traditional price gap between new and used cars.According to industry data, Asian brands had captured about 17% of South Africa’s new vehicle market by the end of 2025, with manufacturers such as Chery and Great Wall Motors (GWM) leading the expansion through lower entry pricing, long warranties and aggressive financing structures, Business Day previously reported.(Dorothy Kgosi) This shift has fundamentally altered consumer decision-making, according to Van der Walt, who said buyers who previously defaulted to used vehicles are opting for new models, often priced closer to second-hand alternatives but offering warranties, lower monthly repayments and bundled finance incentives.As a result, used-car pricing power has weakened, forcing dealers to cut prices to maintain turnover.The impact is being felt across the sector, including at WeBuyCars, which reported higher revenue but declining profitability as margins came under pressure.Revenue rose 7.8% to R14.16bn in the six months to end-March while vehicle sales volumes increased modestly. However, HEPS fell 1.7% to 119.7c, highlighting the disconnect between top-line growth and profitability.The pressure is not confined to pricing alone. Chinese and other Asian manufacturers are reshaping the broader economics of the automotive industry through faster production cycles, vertical integration and advanced manufacturing techniques such as gigacasting and automation, which reduce costs and accelerate model rollouts.Van der Walt said there is another attack coming from the demand for hybrid vehicles. Industry analysis from the Automotive Manufacturing Solutions (AMS) shows that Chinese manufacturers are defining global automotive innovation, particularly in electric vehicles and hybrids, where they are leading in both cost efficiency and speed-to-market.This is also reshaping powertrain demand in South Africa. Hybrid and plug-in hybrid vehicles are gaining traction as consumers look for lower fuel costs without the infrastructure constraints of full electrification. At the same time, rapid electric vehicle development is adding uncertainty to long-term resale values, as technology cycles shorten and depreciation accelerates.The result is a more volatile used-car market where valuation assumptions are increasingly under pressure.“This has significantly influenced consumer behaviour and heightened competition, with these brands capturing notable new vehicle market share through attractive pricing and compelling finance offerings,” WeBuyCars said.“The current strength of the new vehicle market in South Africa continues to place pressure on margins across the used vehicle sector. Used vehicle prices experienced deflation in the six-month period.”Established manufacturers have responded by cutting prices and improving incentives, further intensifying competition and compressing the value gap that traditionally supported used-car demand.“Traditional manufacturers, in an attempt to regain lost ground, responded in kind, further intensifying price competition and compressing the value differential that has historically made used vehicles a more attractive choice for many South African consumers,” the company said.Despite the margin squeeze, WeBuyCars continues to expand its footprint, opening new locations in Cape Town, Pretoria and eMalahleni as it positions for longer-term growth in volumes.