Chinese brands are gaining momentum and igniting a new era in South Africa’s automotive landscape. Whether it’s a sleek new SUV rolling off a Chinese assembly line or a locally produced vehicle designed to compete on the global stage, the industry is speeding with potential and possibilities.
A Few Decades Ago, South Africa witnessed the rise of Japanese automotive brands like Kia, Hyundai, and Suzuki, which boldly entered the market to challenge well-established mass volume players like Toyota, Volkswagen (VW) and Nissan. Over time, these brands not only carved out significant market shares but also won the hearts of South Africans with their affordability, innovation and reliability. Today, a similar story is unfolding – this time with Chinese automotive brands rapidly making their mark on South Africa and the broader African continent. Brands like Great Wall Motor Company (GWM), Haval and Chery have already secured spots in the National Association of Automobile Manufacturers of South Africa’s (NAAMSA) top 10 sales charts. Meanwhile, newer entrants such as GAC, Jetour, LDV and Dongfeng are aiming to steadily build momentum. With 2025 promising a wave of exciting new launches, these brands are poised to redefine the automotive landscape and spark a new era of competition.
Vision for Growth
Jay Jay Botes, General Manager of Chery South Africa, reveals that the company has ambitious plans to introduce multiple new energy vehicles (NEVs) to the South African market in 2025. While the idea of establishing local manufacturing facilities is under consideration, Botes emphasizes that Chery is still in the feasibility study phase.
On the other hand, BYD – one of China’s largest electric vehicle (EV) producers – is entering the South African market with bold intentions. As BYD celebrates 30 years, the brand is leveraging its expertise in industries like rail transit, renewable energy and electronics to disrupt the automotive industry. Steve Chang, General Manager of BYD South Africa, highlights the company’s long-term vision: building trust in a competitive environment by prioritizing customer relationships over short-term profit margins.
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BYD’s upcoming launches, including the Sealion 6 plugin hybrid and the Dolphin mini, underscore its commitment to innovation. The brand’s focus on R&D, with 10% of its global workforce dedicated to it, ensures that its vehicles are not only technologically-advanced but also tailored to meet the needs of diverse markets like South Africa.
The BRICS Connection
The rise of Chinese brands in South Africa is closely tied to the country’s membership in the BRICS bloc. Since joining in 2010, South Africa has seen a significant increase in automotive imports from BRICS countries, with China playing a central role. However, this growth has also sparked debates about balancing the interests of legacy automotive manufacturers like BMW, Mercedes-Benz, Ford, VW, Isuzu, Nissan and Toyota – many of which have invested heavily in local production facilities – and the influx of competitively priced imports.
Mikel Mabasa, CEO of NAAMSA, acknowledges the complexities. “The disruption caused by Chinese imports is a topic of concern, but any potential interventions must align with the South African Automotive Masterplan 2035 and the second phase of the Automotive Production Development Programme (APDP2),” he explains. Mabasa emphasizes that while competition is intense, it ultimately benefits consumers by offering more choices at competitive prices.
Competing on Value
In a fiercely-competitive market, Chinese brands have positioned themselves as champions of affordability and innovation. Their focus on SUVs – one of the fastest-growing segments globally – has struck a chord with South African consumers. Equipped with advanced features and cutting-edge technology, these vehicles offer exceptional value, making them highly appealing in a market where 66.3% of vehicles sold in 2023 were priced below ZAR500,000 ($26,787).
Despite this influx, locally-produced vehicles remain strong contenders. In 2023, eight of the top 10 selling models in South Africa were manufactured locally, showcasing the resilience and adaptability of the country’s legacy OEMs (Original Equipment Manufacturers). Mabasa notes that the presence of Chinese brands has spurred local manufacturers to innovate, offering aggressive marketing, attractive financing options, and new model launches to stay competitive.
The NEV Revolution
As the global automotive industry pivots toward NEVs, South Africa stands at the cusp of a transformative shift. President Cyril Ramaphosa’s announcements at the SA Auto Week in 2024 highlighted the government’s commitment to fostering NEV adoption through policy support and incentives. However, NEVs remain a niche segment, accounting for just 1.45% of total new vehicle sales in 2023.
Chinese brands like BYD are well-positioned to accelerate this transition. By offering affordable EV options, they could drive broader market adoption and pave the way for local production in the future. Mabasa believes that a combination of demand-side incentives and hybrid vehicle inclusion in the APDP2 framework could catalyze this growth. “The affordability of Chinese EVs makes them a key player in addressing the high costs that currently hinder NEV adoption,” he says.
A Continent Alive with Possibilities
The rise of Chinese automotive brands in South Africa is not an isolated phenomenon. These brands are also making inroads across sub-Saharan Africa, leveraging the continent’s growing appetite for affordable, feature-rich vehicles. With whispers of potential production facilities and partnerships, their influence is set to extend far beyond sales figures.
This shift is indicative of a broader transformation within the African automotive landscape. Consumers are becoming more discerning, demanding vehicles that offer not just affordability but also quality, reliability and innovation. As Chinese brands rise to meet these expectations, they are also challenging local and global players to rethink their strategies.
Shaping the Future
The automotive industry is undergoing a seismic shift, and South Africa is at the heart of this transformation. Chinese brands, with their relentless focus on affordability, technology and customer trust, are reshaping the competitive landscape and redefining what it means to succeed in the industry.
For consumers, this means more choices, better value and the promise of a future where NEVs become a mainstream reality. For manufacturers and policymakers, it’s a call to innovate, collaborate and adapt to a rapidly changing world.
As South Africa enters this new era, one thing is clear: the automotive landscape is alive with possibilities. Whether it’s a sleek new SUV rolling off a Chinese assembly line or a locally- produced vehicle designed to compete on the global stage, the industry is brimming with potential. And at the center of it all are the consumers, whose preferences and demands will ultimately shape the future. This is not just a story about cars – it’s a story about transformation, resilience and the unyielding drive to innovate. It’s a story about South Africa, its people and its place in the global automotive revolution.
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