In recent times, the automotive market in South Africa has witnessed a surge in the popularity of Sport Utility Vehicles (SUVs). Renowned for their adaptability and functionality on the nation’s diverse roads, SUVs have become an increasingly common choice among South African drivers. However, the soaring prices of these vehicles have created a landscape where only a limited selection of SUVs falls within the affordable bracket for many consumers, with just 16 models presently priced under R650,000 in the country.
South Africa’s penchant for outdoor activities, diverse terrains, and challenging road conditions has contributed significantly to the rise in SUV popularity. These vehicles, equipped with higher ground clearance and robust build, instill a sense of confidence and safety, making them an ideal choice for traversing both rough off-road trails and pothole-ridden city streets.
The allure of SUVs extends beyond their on-road capabilities. Their ample cargo space and towing capacity cater perfectly to the needs of families and outdoor enthusiasts, facilitating the transportation of equipment and gear required for various adventures across the country’s landscapes – from national parks to camping destinations.
However, the surging prices of new vehicles, particularly SUVs, have become a cause for concern among consumers. The escalating costs are attributed to factors such as the vehicle size, fuel consumption, and inflationary pressures impacting manufacturing expenses in South Africa.
TransUnion’s latest Vehicle Pricing Index (VPI) underscores this issue, revealing a substantial 6.7% average increase in the price of new vehicles throughout 2023. This hike surpasses the inflation rate (CPI), and experts forecast a further upsurge in the coming months, affecting all vehicle segments.
Breaking down the numbers, medium SUVs and hatchbacks saw the steepest increases at 7.4% in the second quarter of 2023. Other year-over-year price increments included small SUVs (6.8%), premium and hybrids (6.6%), crossovers (6.4%), and electric vehicles (3.1%).
Consequently, the dwindling number of SUVs priced below R650,000 presents a challenging scenario for budget-conscious buyers. Among the few options available, the Mahindra Scorpio-N, Mahindra XUV700, and the Haval H6 stand as the only SUVs retailing for under R500,000. Conversely, the upper echelon of this category showcases the Kia Sportage as the most expensive SUV under R650,000, retailing at R637,995.
To grasp the affordability of these vehicles, one needs to consider the income required to afford them. Assuming a 60-month term at an interest rate of 11.75% with no balloon payment, affording the cheapest SUV, the Mahindra Scorpio-N, would demand an income slightly over R42,000.
Below is a comprehensive list of the 16 SUVs currently available in South Africa priced under R650,000, along with their respective starting prices:
Mahindra Scorpio-N – R473,999
Mahindra XUV700 – R479,999
Haval H6 – R484,750
Mazda CX-5 – R524,600
Proton X70 – R529,900
Proton X90 – R559,900
BAIC B40 – R574,500
Opel Grandland – R599,900
Hyundai Tucson – R584,500
Peugeot 3008 – R599,900
Chery Tiggo 8 Pro – R609,900
Honda CR-V – R609,900
Volkswagen Tiguan – R614,600
Renault Koleos – R620,999
Citroen C5 Aircross – R633,900
Kia Sportage – R637,995
In conclusion, the escalating prices of SUVs in South Africa have rendered affordability a pressing issue for potential buyers. As the market dynamics continue to evolve, consumers face limited options within a reasonable price range, prompting them to carefully assess their financial capacities while exploring the available selections in the SUV segment.
