Combined Motor Holdings, a leading dealer group in the South African market, has reported concerns over the residual values of Chinese cars introduced to the market four to five years ago.
In its interim results for the six months to 31 August 2026 it said Chinese brands continue to grow mew market share rapid but were suffering in the used car market with residuals on the slide.
“Once again the Chinese brands made a significant impact, with their share rising from 14.8% to 20% of national sales,” it said in its results.
Combined Motor Holdings represents GWM, Chery, Leapmotor and the Foton commercial vehicle brand.
“The Group has exposure to a number of the Chinese/ Asian brands, but with the proliferation of products and brands – and increasing each quarter, it is impossible to identify all the potential long-term winners.
“The used car market has proven to be particularly difficult. The influx of Chinese/Asian brands that were introduced into the market at discount prices some four to five years ago are now at the recycle stage.
“However, the sharp depreciation in value of these vehicles has surprised owners and forced them to hold on for longer, until the trade-in values align with the residual amounts owed to banks.
