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    Home » Sections » Motoring » Chinese car giants pivot focus to Africa

    Chinese car giants pivot focus to Africa

    Chinese car makers are pushing to unlock Africa's underdeveloped potential, with a focus on electric and hybrid vehicles.
    By Nqobile Dludla26 June 2025
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    Chinese car giants pivot to Africa
    Onlookers watch during the launch of Chery’s new Super Hybrid range of cars at Montecasino in Johannesburg, 20 June 2025. Siphiwe Sibeko/Reuters

    Chinese car makers are pushing to unlock Africa’s underdeveloped potential, with a focus on electric and hybrid vehicles, as restrictions on exports to the US and Europe send them on a global quest for new markets.

    Though home to over a billion people, low incomes and high import duties have long hampered manufacturers’ efforts to sell more cars in Africa. Unreliable power availability and a lack of charging infrastructure have meanwhile held back EV uptake.

    But companies including BYD, Chery Auto and Great Wall Motor (GWM) are aiming to leverage low prices to advance where others have struggled and use an expansion in South Africa as a stepping stone in a continent-wide strategy.

    We treat South Africa as a very important market for our global expansion. It’s a gateway to the African continent

    “We treat South Africa as a very important market for our global expansion,” said Tony Liu, CEO of Chery South Africa, calling Africa’s most developed car market a “gateway to the African continent”.

    Nearly half of the 14 Chinese automotive brands currently active in South Africa launched only last year. More, including DongFeng, Leapmotor, Dayun and Changan, are set to enter the market soon.

    And as new players move in, more established companies are looking into producing cars locally, allowing them to benefit from a government incentive programme offering rebates for domestically made vehicles.

    Liu said Chery, the no-2 Chinese car company in South Africa, was considering partnerships or building its own factory to produce cars for the South African market and export to the rest of the continent and potentially Europe.

    Local assembly

    Omoda & Jaecoo, Chery’s premium independent brand, is also conducting feasibility studies for local assembly, its South Africa GM Hans Greyling said.

    Until now, it had not made sense for GWM, the largest Chinese car maker in South Africa by sales, to localise component production, its chief operating officer Conrad Groenewald said, as Chinese imports had been cheaper.

    That is changing, however, and outsourcing to a local manufacturer or setting up a semi-knockdown plant, which would turn partially pre-assembled kits into finished vehicles, were options. “I think now that we’ve got economies of scale. We need to revisit those feasibility studies in the next 12 months,” he said.

    Read: All the plug-in hybrid EVs for sale in South Africa

    Chinese car makers, which are in the midst of a rapid switch to EVs and hybrid production, are facing growing obstacles in the US and Europe. Growth of new EV sales has been slower than expected in many wealthy markets. And the EU’s hefty duties on imports of Chinese-made EVs and 100% tariffs in the US have erased their primary competitive advantage: price. Efforts to push into large emerging markets like India and Brazil have also proven to be complicated.

    While the African market is still comparatively tiny, industry sources point to massive potential for growth. South Africa, a market long dominated by the likes of Volkswagen and Toyota, manufactured just under 600 000 cars last year. But the government estimates production could grow to up to 1.5 million by 2035 given the right incentives.

    BYD South Africa GM Steve Chang
    BYD South Africa GM Steve Chang. Siyabonga Sishi/Reuters

    The former head of the Association of African Automotive Manufacturers once estimated sub-Saharan Africa’s potential market at between three and four million new car sales annually. Chinese companies stand poised to test that potential.

    Chery is launching sales of eight hybrid cars, including five extended-range plug-in hybrids and three hybrid models, in South Africa. It will also introduce two small crossovers, while a bakkie is scheduled to go on sale next year. It also plans to bring its EV line iCar and another brand, Lepas, to South Africa in the near future, Liu said.

    BYD, China’s top producer of electric and plug-in hybrid vehicles, entered the South African market in 2023.

    Once the market share of new energy vehicles reaches almost 10%, then the demand will start to explode

    It recently doubled its South Africa line-up, adding the plug-in hybrid Shark 6 bakkie, plug-in hybrid Sealion 6 crossover and fully electric Sealion 7 SUV models to a range that had previously only included battery-powered models.

    Motoring industry executives view plug-in hybrids as critical to their Africa strategy.

    “Battery electric vehicles have not really taken off in South Africa,” Omoda & Jaecoo’s Greyling said. “We’ve gone the route of looking more towards traditional hybrids or plug-in hybrids.”

    South African sales of so-called new energy vehicles — a class including traditional and plug-in hybrids along with EVs — more than doubled from 2023 to last year, accounting for 3% share of total new vehicle sales. While the numbers may still be small — 15 611 vehicles, mainly traditional hybrids — Chinese companies are encouraged by the trend.

    Consumer scepticism

    “Based on our experience in China, once the market share of new energy vehicles reaches almost 10%, then the demand will start to explode,” Chery’s Liu said.

    Chinese car makers face consumer scepticism over quality, spare parts availability and the untested resale value of their vehicles. But they are counting on price and advanced technology setting them apart from Africa’s traditional market leaders and are focusing on offering plug-in hybrids and EVs with a starting price of under R400 000.

    Read: China’s car factories run cold as price war masks deep overcapacity

    “As long as they remain affordable from an upfront cost perspective, they will be differentiated against legacy brands offering similar specifications,” said Greg Cress of advisory firm Accenture.

    Omoda & Jaecoo, which launched in Africa in 2023 and operates 52 dealerships in South Africa, Namibia, Eswatini and Botswana, hopes to triple sales in the next 18 months and enter new markets Zambia and Tanzania.

    GWM's Ora EV
    GWM’s Ora EV

    BYD plans to expand its dealership network in East, Southern and West Africa, including a first-time entry into Tanzania. Steve Chang, BYD Auto South Africa’s GM, said he is not daunted by the slow adoption of EVs and Africa’s internal combustion engine-dominated vehicles market.

    “I think South Africa and the rest of Africa have a very big opportunity to what I call leapfrog from ICE into renewable energy cars,” he said. “Africa is a very big market.”  — (c) 2025 Reuters

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