Chinese automakers are expanding their presence in Africa’s automotive market, bringing a wider range of electric vehicles (EVs), hybrids, internal combustion engine (ICE) vehicles and range-extended models to consumers, China Global South reported.
Their growing presence, however, does not represent a complete shift away from Africa’s long-standing dependence on second-hand vehicles imported from countries such as Japan, the United Kingdom and the United States. Instead, the arrival of Chinese brands is broadening consumer choices and changing the way new entrants are approaching the African market.
South Africa, the continent’s largest and most developed automotive market, highlights the different strategies being adopted by Chinese manufacturers.
Chery is preparing to start local production of its best-selling Tiggo 4 range in South Africa. The Tiggo 4 Cross is expected to be the first model manufactured at Chery’s Rosslyn facility, with production planned for the second half of 2027.
BYD, meanwhile, continues to supply the South African market through imports of fully built vehicles.
The different approaches reflect the cost and complexity involved in establishing local vehicle production. A compact model such as the BYD Dolphin Surf comprises tens of thousands of manufactured components, ranging from bolts, clips and interior trim pieces to battery cells and microchips.
Localising a substantial portion of this production would require manufacturers to establish extensive supply chains capable of supplying thousands of individual components. Building such a network would require considerable time and investment.
Greater local production could also require a sizeable workforce, particularly where manufacturers cannot depend heavily on automation. South Africa’s Automotive Industry Master Plan to 2035 provides limited detail on the potential role of automation and robotics in supporting this transition.
The additional investment and operating costs associated with local production would ultimately have to be absorbed within the vehicle’s overall cost structure. This could put upward pressure on prices for consumers.
As a result, a vehicle manufactured locally could potentially cost more than an equivalent model imported from an established overseas production base, despite the advantages associated with developing local manufacturing.
