Just a few years ago, Chinese-made cars were rare on South African roads, with manufacturers seen only as fringe players. However, this is quickly changing as Chinese carmakers now outsell some established Western, American and Japanese brands.
In recent years, South Africans have increasingly been buying Chinese brands like Chery and Haval, a subsidiary of Great Wall Motor (GWM), driven by affordability and feature-rich vehicles. Banking on growing demand, several Chinese car brands are now eyeing manufacturing and assembly plants in South Africa.
The cars are largely internal combustion engine vehicles, but there is no reason to doubt that electric vehicles will follow suit.
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The South African SUV market saw a major shift between January and August compared to the same period last year, according to S&P Global Mobility.
Together, Chinese original equipment manufacturers (OEMs) grew their sales volume by as much as 86 per cent, boosting their total market share to 15 per cent. This was driven by Chery, whose volume rose 27 per cent to more than 16,000 units, and Haval, which saw a 45 per cent surge to over 12,000 units, according to S&P Global Mobility.
Although Japanese leaders Toyota and Suzuki still command the largest volumes, their individual dominance is waning, with both brands recording a decline in market share in the same period.
W. Gyude Moore, a distinguished fellow at the think tank Energy for Growth Hub and a former Liberian public works minister, said that if what one saw on the road was any indication, Chinese cars owned the foreseeable future of South African mobility.
“I have been visiting Johannesburg now for a decade and there is an unmissable trend of an increase in Chinese vehicles on the road,” Moore said.
Walt Madeira, principal analyst for Europe, the Middle East and Africa vehicle forecasting at S&P Global Mobility, said that Chinese carmakers were succeeding in winning over local buyers and challenging Western brands through competitive pricing, feature-rich vehicles, long warranties and aggressive market expansion.
Unlike their competitors, Chinese brands integrate high-end features – such as large touchscreens, driver-assist technology and premium interiors – into their entry-level models as standard.
Sales of China-made vehicles in South Africa have grown exponentially in recent years, leading some brands to look into building manufacturing and assembly plants in the country. Photo: Xinhua alt=Sales of China-made vehicles in South Africa have grown exponentially in recent years, leading some brands to look into building manufacturing and assembly plants in the country. Photo: Xinhua>
Building on this growing commercial success and the strategic interest in local manufacturing, the South African government is incentivising carmakers to invest in the country. Given the good relations with China and the success of these vehicles, the government is very likely to promote financial advantages for Chinese OEMs to build vehicles locally, Madeira added.
Alongside the shift in petrol vehicle sales, EV manufacturers, such as the Shenzhen-based BYD, have increased their market presence in South Africa and other African countries to diversify against mounting global tariff barriers.
South Africa’s deputy minister of trade, industry and competition, Zuko Godlimpi, confirmed last month that discussions were under way with Chinese carmakers to invest in local production, particularly for hybrid and electric vehicles.
“One area of their interest is to invest in hybrid vehicles and EVs because that is the market that they are servicing globally,” Godlimpi said.
This push for local assembly is part of a dual strategy that includes a defensive plan to raise import duties to their “highest ceiling”, as Godlimpi put it, to prevent cheap imports from pricing out South African-manufactured cars.
Vehicles wait to be exported at China’s eastern port of Nanjing in October. Photo: Xinhua alt=Vehicles wait to be exported at China’s eastern port of Nanjing in October. Photo: Xinhua>
In response to the government’s proposal and the looming threat of higher import duties, Chery wants to set up a complete knock-down plant while GWM is currently holding talks with South African assemblers to start joint manufacturing of pickups.
Moore said that in a price sensitive market, Chinese vehicles had the upper hand. He noted that as Chinese manufacturers faced increasing scrutiny in other markets, the growing significance of low and middle income regions made it sound business sense to develop local assembly and manufacturing capabilities there.
Chinese carmakers are pivoting towards Africa for new growth, particularly in the EV sector, due to fierce competition at home and higher tariffs in the US and European markets.
But despite their success, Chinese car brands in South Africa face challenges, including a still-growing service network and lower resale value compared to Japanese and Korean rivals. The core issue is that Chinese manufacturers prefer to export unless local assembly offers a major financial incentive.
Some local manufacturers in South Africa who are unable to compete with Chinese imports on price have been pushing the government to impose import duties.
However, Madeira believes the threat of new tariffs is low. “We do not envision South Africa introducing tariffs on Chinese exports, as this would sour relations and China has the superior strength in all negotiations across all industries with South Africa.”
