Johannesburg —
In South Africa’s capital, Johannesburg, the most common vehicles on the streets are thousands of minibus taxis crammed with daily commuters heading from the dusty city to work. At the other end of the spectrum are the luxury sports cars and flashy convertibles that drive around the leafy suburbs of the elite.
But another type of vehicle is increasingly plying Johannesburg’s streets. These are new gasoline-powered SUVs with names such as Chery, BAIC, and Haval. Industry experts say these are all Chinese cars that are gaining popularity among South Africans over more established brands. .
Ross Gray, a car buyer, was considering a large pickup truck made by Chinese manufacturer JAC Motors.
“I’m a sales manager for a kitchen company. That’s why I’m considering buying a double cab, because I have a young family and I need to carry a lot of stuff in the back of the car. For example, on a construction site. I’m there a lot,” he recently told VOA.
His interest in Chinese-made cars was sparked by a bad experience.
“Chinese cars aren’t on the stolen list like the big brands,” Gray said. He was a loyal Toyota Hilux owner until a car thief stole his car. The Hilux is one of the most stolen cars in South Africa, often due to its engine, which fits snugly into a commuter minibus taxi.
However, data shows that car thieves are now focusing not only on consumers but also on Chinese makes and models.
South Africans used to be skeptical of cars labeled as ‘Made in China’. Gray acknowledged that Chinese brands have not yet stood the test of time, but said his research shows quality appears to have improved in recent years.
in the passing lane
The biggest attraction for many Chinese car buyers, including Mr. Gray, is the price.
“The reason I’m interested in Chinese cars like this is firstly because the prices are much lower than the big brands that have been in the country for many years,” he said.
Mikel Mabasa, CEO of South Africa’s car industry group Naamsa, said cars imported from China cost far less than most SUVs from Germany’s Volkswagen, America’s Ford and Japan’s Toyota. spoke.
“These Chinese brands have actually experienced double-digit growth, especially in the last three years,” he told VOA. “So if you look at the growth from 2019 to 2023, the number of Chinese brands entering the South African market has actually increased by over 200%, which is obviously very unusual.”
Mabasa added: “But I think there’s a reason…if you look at the price range, many of these brands are much cheaper than their competitors.”
The number of Chinese cars imported into South Africa has been steadily increasing, with more than 39,000 cars brought into the country last year, compared to around 11,000 in 2019, according to Naamsa statistics.
Germany’s imports showed the opposite trend, reaching just over 21,000 vehicles in 2023, down from around 37,000 vehicles in 2019. Cars imported from Japan show similar numbers. According to statistics, the United States exported about 4,200 cars in 2019, but last year it was down by nearly 300 cars.
In terms of sales, certain models from established brands such as Ford and Toyota still lead the way, but Chinese startups are not far behind. From July 2023 to July 2024, Chinese brand Chery sold more than 11,000 Tiggo 4 Pro models in South Africa. This compares to 25,000 units for the Ford Ranger and 34,000 units for the Toyota Hilux pickup truck during the same period.
Towards electrification
South Africa itself is a major automobile producer, with manufacturing plants in the country for brands such as Ford, Toyota, BMW, Mercedes, Nissan, Volkswagen, and Suzuki.
“Thirty-nine percent of the components used in the manufacturing process are sourced locally in South Africa,” Mabasa told VOA. He said that while some cars manufactured in South Africa are sold in the domestic market, more than 60% are exported to nearly 150 countries.
BAIC Motor’s first local Chinese car manufacturing plant was opened to much fanfare in the Eastern Cape in 2018 by Chinese President Xi Jinping and South African President Cyril Ramaphosa. The Chinese Consulate General in Cape Town described the project as a “milestone in bilateral relations”. economy. ”
However, this project faced some difficulties.
“It is clear that they are still in the preliminary stages and are experiencing some problems in getting that particular plant off the ground,” Mabasa said.
BAIC executives told local South African media that the pandemic and labor disputes were to blame for the delay. But there is still hope for Mabasa.
“We obviously wish them the best and it’s definitely a model that many other factories and companies in China will adopt as a template if they want to expand into South Africa and start manufacturing cars. I think so,” he said.
Mr Ramaphosa also encourages this. During a state visit to China last month, he visited the headquarters of Chinese electric car giant BYD.
“We have introduced policies to foster the development of South Africa’s electric vehicle industry,” the South African President said during his visit.
“We are confident that companies like BYD will recognize South Africa as a unique and advantageous location that can serve as a base into other markets.”
The electric vehicle revolution is in its infancy in South Africa, where petrol remains the dominant vehicle. But BYD is turning its attention to Africa as it faces increased trade restrictions in the United States and Europe.
BYD already has a showroom in South Africa and recently opened showrooms in Rwanda, Zambia and Kenya.