Chinese car brands are making significant inroads into South Africas auto market, particularly in the mid-range and SUV segments, with brands like Haval and Chery gaining popularity. In the first half of 2024, both brands were among the top 10 best-sellers in the compact family car segment, and in 2023, Haval and Chery ranked as the top-selling and third-best selling SUVs in South Africa. These brands are attracting South African consumers due to their affordable pricing and strong value propositions, offering well-equipped cars with advanced technology at competitive prices.
Auto experts, including Ciro De Siena of Cars.co.za, highlight that Chinese cars often come fully loaded with features such as panoramic roofs and 360-degree cameras at a lower price than equivalent cars from traditional brands. Lance Braquinho, an auto journalist, explains that Chinese manufacturers have significantly improved their vehicles quality and software integration since they first entered the market in the 2000s. He notes that Chinese car brands are particularly strong in technology and software-areas where traditional automakers have lagged behind.
The growth of Chinese brands in South Africa is also linked to changing consumer priorities. As economic pressures have made consumers more price-conscious, Chinese car brands have filled the gap by offering quality vehicles at lower prices. The shift from brand loyalty to value has allowed Chinese brands to gain a foothold in a market that used to favor premium European brands like BMW and Audi.
Despite the challenges posed by a 25 import tariff on light vehicles and higher tariffs on certain components, Chinese brands are still seeing success. Some, like BAIC, have even made significant investments in local production. In 2018, BAIC partnered with South Africas Industrial Development Corporation to build a factory in Gqeberha Port Elizabeth. However, this plant has struggled to produce at scale, manufacturing only 300 cars since its opening. Meanwhile, companies like Ford, Volkswagen, and Stellantis continue to invest in local manufacturing, showing that foreign brands are still optimistic about the South African market.
- Haval and Chery are top players in the mid-range and SUV segments, with strong sales in 2023 and 2024.
- Chinese cars are popular due to their affordable pricing and advanced features like panoramic roofs and 360-degree cameras.
- The appeal of Chinese brands is linked to their improved quality, particularly in technology and software integration.
- South African consumers have shifted from brand loyalty to prioritizing value in response to economic pressures.
- BAIC launched a factory in Gqeberha in 2018 but has struggled to produce at scale, while other international brands, like Volkswagen and Stellantis, are investing in South Africa.
- The South African auto market has seen modest growth, with 0.5 growth in 2023, but future growth is dependent on economic conditions improving.
