The exploration of mechanisms that enable species coexistence under competition for a sole limiting resource is widespread across ecology. One classical example is the coexistence of herbaceous and woody species in self-organised dryland vegetation patterns. Previous theoretical investigations have explained this phenomenon by making strong assumptions on the differences between grasses and trees (e.g. contrasting dispersal behaviours or different functional responses to soil moisture). Motivated by classical theory on Lotka-Volterra competition models, I argue that the interplay between interspecific and intraspecific competition can explain species coexistence without relying on such assumptions. I use an ecohydrological reaction-advection-diffusion system that captures the interactions of two plant species with an explicitly modelled resource to show that coexistence is facilitated by strong intraspecific competition of the species superior in its colonisation abilities, if its competitor's local average fitness is higher. The inclusion of a spatial self-organisation principle yields significant differences from the nonspatial case in which strong intraspecific competition of the locally superior species enables coexistence. Results presented in this paper also capture the empirically observed spatial species distribution in single bands of vegetation and propose differences in plants' dispersal behaviour as its cause.