Saudi Arabian vehicle distributor Jameel Motors and China’s Chongqing Changan Automobile plan to enter the South African market later this year as the continent’s biggest economy shows signs of recovery.
Jameel will start selling Changan’s SUVs, bakkies and sedans, as well as its Deepal electric vehicle range from the fourth quarter, the companies said in an e-mailed statement on Monday.
Jameel, part of Abdul Latif Jameel Group, the third-largest shareholder of Rivian Automotive, plans to invest R500-million and open 50 showrooms in the “medium term”.
“The South African market represents a significant long-term investment opportunity, given that it is the largest automotive market in Africa,” they said.
South Africa had over 500 000 new vehicle sales last year, with domestic new vehicle sales rising more than 10% in January year on year, according to industry association the Automotive Business Council (also known as Naamsa).
The move also marks the latest inroad by a Saudi Arabian investor in South Africa.
TCS | We test drive South Africa’s cheapest electric car
Zahid Group is currently in talks with South Africa’s Barloworld to increase its stake in the logistics firm. The Saudi Telecom Company, via a subsidiary, recently acquired a South African telecommunications company, and Riyadh-based ACWA Power has signed a memorandum of understanding to invest US$10-billion in South Africa’s renewable energy industry over the next decade. — (c) 2025 Bloomberg LP
Get breaking news from TechCentral on WhatsApp. Sign up here.