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South Africa's Auto Industry Booms as Chinese Giants Eye Local Assembly

Chinese automakers GWM and Chery are set to shake up South Africa's automotive industry. As they consider local assembly, established manufacturers face increased competition and job concerns.

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1 min read
This is a presentation and here we can see vehicles on the road and we can see some text written.
This is a presentation and here we can see vehicles on the road and we can see some text written.

South Africa's Auto Industry Booms as Chinese Giants Eye Local Assembly

South Africa's automotive industry is witnessing significant developments. Chinese companies Great Wall Motor Company (GWM) and Chery Automobile are planning to start assembling vehicles locally. Meanwhile, the rise in market share of imported vehicles from China and India is putting pressure on South African manufacturers, sparking calls for increased import tariffs.

The South African automotive industry is thriving, with major global players like Mercedes-Benz, BMW, Ford, Toyota, and Volkswagen operating manufacturing facilities in the country. Toyota plans to launch three electric vehicle models in 2026, while Stellantis aims to grow its presence with electric vehicles. Vehicle sales have surged, increasing by 24% year-on-year to 54,700 units last month.

GWM and Chery Automobile are eyeing the South African market. GWM ranked sixth in passenger car sales last month, with Toyota leading the category. Chery secured fourth place, outperforming Hyundai, Ford, and Kia. Chery aims to nearly double its sales to 39,000 vehicles this year. Both companies are considering setting up assembly plants in the country within the next three to six months, with Chery considering a completely knocked down plant.

The entry of GWM and Chery into South Africa's automotive industry could further boost vehicle sales, which are expected to return to pre-pandemic levels by 2025. However, local manufacturers are feeling the heat, leading to calls for increased import tariffs to protect jobs. The future of South Africa's automotive industry appears promising, with a mix of traditional players and new entrants driving growth and innovation.

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