The latest auto sales data for South Africa reflects the growing prominence of Chinese brands: They are not yet at the top of the table, but they are moving up fast, and more Chinese competitors are rapidly entering the market.
In January 2024, two Chinese brands were among the top ten highest-selling auto brands in Africa’s largest passenger vehicle market:
- HAVAL MOTORS: A sub-brand of Great Wall Motors (GWM), a privately-owned manufacturer headquartered in Hebei Province that specializes in sport utility vehicles (SUV), sold 1,463 units and placed eighth on the list.
- CHERY MOTORS: The state-owned producer of cars, vans, and SUVs is based in Anhui Province. It is China’s largest auto exporter. Chery sold 1,425 units and placed ninth.
Sales of Haval and Chery models last month were still far behind the market leaders Toyota (over 10,000 units) and Volkswagen (over 5,000 units), but they have increased rapidly from minuscule levels only a few years ago. Some Chinese brands are now outselling established Western brands such as Renault, Mercedes-Benz and BMW.
In the subcategory of SUVs, Chinese brands have found a particularly competitive niche in South Africa. According to calculations of sales data by the website Cars.co.za, in the first 11 months of 2023, the Haval H6 was South Africa’s top-selling SUV with 5,032 units, while Chery’s Tiggo 8 Pro SUV was in third place with 2,195 units.
The main reasons for the competitiveness of Chinese models in South Africa are price and value for money. Chinese SUVs come with features such as cameras and navigation installed at no extra cost, while the unit prices are slightly lower than those of their competitors. For many South African buyers strapped for cash, this is a winning offer.
There is now an increasing stable of Chinese auto brands in South Africa. Aside from GWM and Chery, Jiangling Motors entered in 2010, Jianghuai Automobile in 2012, and Beijing Automotive Group in 2018.
In May 2023, BYD, the world’s leading electric vehicle brand, also arrived in South Africa, and the latest new arrival in February 2024 is Guangzhou Automobile (GAC), whose GAC Aion is one of China’s leading electric vehicle brands.
WHY IS THIS IMPORTANT? Chinese auto brands are currently in an aggressive global push to win global market share, and South Africa is an important “battleground state” in the Global South. While Chinese cars were long considered mere cheap imitations of Western models, they are now becoming competitive in their own right. This is progressively shaking up the global car industry.
SUGGESTED READING:
- Cars.co.za: SA’s best-selling brands and vehicles in January 2024 by Ryan Bubear
- BusinessTech: All the new Chinese vehicles that launched in South Africa
