According to a Reuters report, South Africa is engaged in discussions with Chinese automotive manufacturers to encourage local investment, with at least one company showing considerable interest in establishing production facilities in the country, a senior government official revealed on Wednesday.
Africa's most advanced automotive manufacturing centre finds itself at a critical juncture, grappling with declining domestic output while simultaneously experiencing a substantial increase in vehicle imports, predominantly from China.
The competitive landscape is becoming increasingly fierce, with established players such as Toyota and Volkswagen now competing for market share against electric vehicle manufacturer BYD, alongside Chery, Great Wall Motor (GWM) and Beijing Automotive Group (BAIC).
Speaking to parliamentarians, Trade, Industry & Competition Deputy Minister, Zuko Godlimpi, confirmed that negotiations are currently underway with several Chinese automakers regarding the establishment of local manufacturing operations rather than continuing with imports.
"One area of particular interest for them is investment in hybrid and electric vehicles, as these represent the market segment they are serving globally," Zuko explains.
The deputy minister disclosed that one Chinese company held discussions with the trade and industry department in August, expressing keen interest in establishing operations in either East London or Port Elizabeth.
As Chinese automakers seek to escape the pressures of a destructive price war in their domestic market, they are increasingly turning to Africa in pursuit of profitability. BYD and Chery are among approximately 15 Chinese automotive brands currently active in South Africa, with Geely, Leapmotor, and Changan preparing to enter the market in the near future.
South Africa is simultaneously reviewing its tariff structure as part of efforts to shield the domestic automotive sector from low-cost imports.
"We have been working to increase import duties to their maximum permissible levels to ensure that inexpensive imports do not undercut vehicles manufactured in South Africa," Zuko states, acknowledging that implementing such changes requires considerable time.
The developments highlight South Africa's strategic position as both a gateway to the African continent and a potential manufacturing hub for Chinese automotive companies seeking to diversify their global operations beyond their increasingly competitive home market.
Photo: Lenny Kkuhne – Unsplash.
Hyundai Automotive South Africa officially opened Hyundai Midrand, a new dealership aimed at strengthening the brand’s presence in Gauteng and responding to growing customer demand in one of the province’s fastest-growing commercial corridors.
The compact SUV market in South Africa has gained a new contender with the arrival of the GAC Emzoom Nova. It joins the existing Emzoom Executive and Emzoom R‑Style models, broadening the range offered by Salvador Caetano South Africa, the official distributor of GAC Motor.
Chinese vehicle brand Changan has strengthened its South African retail presence with the opening of a new flagship dealership in Umhlanga, KwaZulu-Natal, as the company pushes ahead with plans to establish about 45 dealerships nationally during 2026.
Advertisement
Advertisement
I have bad reflexes. I was once run over by a car being pushed by two guys
Woody Allen
A South African dealership has been instructed to remove or amend an advertisement for a new Jetour T2 after the Advertising Regulatory Board (ARB) ruled that the listing created the impression that a specific vehicle was immediately available for purchase when it was not.
If you were hoping to experience the roaring streets of the Isle of Man TT in 2026, you are already too late. This event, with practice sessions starting on 25 May 2026 and racing commencing on the 30th, requires at least six to twelve months of planning, along with a substantial budget.
Pinewood.AI has added two new embedded modules to its Business Intelligence Solution, giving dealers and OEMs greater insight into financial performance and the customer journey, it says.
