A recent survey by online vehicle marketplace Cars.co.za has revealed that fuel efficiency has become the second-highest consideration for car buyers in South Africa, after the purchase price. The survey, part of the company's industry report for 2026, found that 52.5% of respondents considered fuel efficiency when making a purchase, outranking traditional considerations such as brand loyalty or resale value. This shift in priorities comes as the cost of petrol and diesel is expected to reach record highs in October.
The surge in fuel prices is attributed to the US-Iran war, which has led to a significant increase in the cost of petrol and diesel in South Africa. In September, the department of mineral and petroleum resources announced that the pump price of 95-grade petrol would climb by R1.34 to R26.92/l in Gauteng, while the wholesale cost of diesel jumped by R2.95 and R3.15 for 0.05% sulphur grade and 0.005% sulphur grade, respectively. This has led to a fundamental reevaluation of transport budgets by South African motorists.
According to Cars.co.za, the projected fuel price adjustments for October are expected to push inland 95-unleaded petrol close to the R30-per-litre threshold. However, rather than putting vehicle purchases on hold, sustained fuel price volatility is actively reshaping how consumers shop, with a growing consideration for hybrids, smaller-engine vehicles, and affordable new-energy alternatives. The company's data reveals steady quarter-on-quarter growth in search and inquiry activity for petrol-electric hybrids.
The survey also found that most respondents, 59.1%, said a vehicle's country of origin no longer affected their choice, paving the way for rapid adoptability of affordable hybrid and small-displacement alternatives. This shift towards a "total cost of ownership" mindset is driven by motorists doing the math and weighing up cost per kilometre, fuel economy figures, and remaining service plans just as heavily as the ticket price.
Alan Quinn, chief product and innovation officer at Cars.co.za, noted that when petrol moves closer to R30 a litre, the monthly cost of running a vehicle rapidly rivals the monthly finance payment itself. The survey comes after the latest net salary index from national payments utility PayInc showed that rising inflation and higher interest rate hikes due to the war in the Middle East are eroding purchasing power and hitting wage earners' discretionary spending and confidence.
The PayInc net salary index dipped 0.1% to R21,622 in August compared with July, though it was up 1.9% year on year. Factoring in inflation meant salaries were 0.5% lower in real terms at R20,164 a month, representing a 2.6% pullback in August compared with the same month a year ago. The South African Reserve Bank hiked interest rates by 25 basis points on September 23, citing rising inflation risks arising from the global oil price shock.
As motorists navigate ongoing cost pressures, vehicle selection over the next 12 months is expected to be influenced by financing and flexible mobility, as 53% of South African consumers actively cut back on discretionary spending. With more accessible hybrid powertrains and entry-level EVs entering the market, supported by expanding long-term manufacturer warranties, consumer confidence in non-traditional powertrains is set to deepen.
Key points
- Fuel efficiency is now the second-highest consideration for car buyers in South Africa, after the purchase price.
- The surge in fuel prices is driving a shift towards hybrids, smaller-engine vehicles, and affordable new-energy alternatives.
- Consumer confidence in non-traditional powertrains is set to deepen with more accessible hybrid powertrains and entry-level EVs entering the market.
