In anticipation of DealerCon 2025, Brandon Cohen (photo), Chairperson of the National Automobile Dealers’ Association (NADA) of South Africa, emphasised the critical role of the upcoming summit in empowering automotive dealers amid significant market shifts.
Speaking from the Cars.co.za studio in Johannesburg, Brandon underscored DealerCon's unique position as an industry event focused on dealer-centric content, a departure from the current launch-dominated landscape.
He highlighted the primary challenge facing South African dealers: the financial constraints of consumers. However, he identified substantial opportunities emerging from the expansion of Chinese automotive brands into the South African market, new approaches from traditional brands and the increased availability of stock in the used car sector.
Brandon referenced the NADA Dealer Satisfaction Index (DSI) survey, which consistently shows strong performance for Chinese brands among South African consumers. This trend is further supported by recent market analysis indicating a significant increase in market share for Chinese manufacturers, growing from 2% in 2019 to 9% by July 2024.
The influx of new Chinese brands, with nearly half of those currently active in South Africa having launched in the past year, is contributing to a highly diversified automotive offering, with over 50 different vehicle brands now present in the country. This diversification, he noted, presents a unique opportunity for consumers and dealers alike.
NADA plays a crucial role in supporting dealers and serving the consumer by promoting trust and transparency within the industry. As purchasing a vehicle is one of the most significant investments a consumer can make, NADA advocates for every transaction to be handled with the utmost professionalism and care. The association acts as a vital safeguard for dealers, protecting them from opportunistic players and ensuring ethical practices.
A key initiative in this regard is NADA's formalised partnership with Absa. This collaboration aims to address and overcome challenges related to accessing finance for dealer members, ultimately streamlining the purchasing process for consumers.
Brandon encouraged dealers to attend DealerCon 2025 to gain invaluable insights, knowledge and power. He concluded by highlighting the changing nature of customer interactions, noting that today's consumers were highly informed and could exhibit confirmation bias, posing new challenges for dealers in closing sales.
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Cars are the ultimate symbol of freedom, independence and individualism. They offer the freedom to ‘go anywhere,’ whenever it suits and with whom one chooses.
Sarah Redshaw
Dunlop Tyres South Africa has completed a R1.7 billion investment programme at its uMnambithi (Ladysmith) manufacturing facility, introducing new manufacturing technology and expanding production capabilities at the plant.
The South African automotive industry has gained some breathing space following the latest move by the United States Senate to extend the African Growth and Opportunity Act, or AGOA, to the end of 2028.
General Motors (GM) has renewed its joint venture with China's SAIC Motor Corp for another 20 years, enabling the United States (US) automaker to use China as an export hub amid rising competition from Chinese brands in and outside their home market.
