Chinese brands today account for an impressive 9% of all light vehicles sold in South Africa, a more than four-fold increase from the mere 2% they occupied in 2019.
It’s not just the brands that are seeing success, either. Non-Chinese nameplates built in China are also experiencing a surge in demand, with their market share jumping from 2% to 10% in the same period.
These interesting insights were revealed by market intelligence company Lightstone.
A massive return on investment
South Africa is seen as a “lighthouse market” for automakers from China as the two nations’ governments have forged strong ties with one another, and South Africa’s strategic geographical positioning allows for expansion into the rest of the continent which has often been labelled the final frontier for the global automotive industry.
Chinese vehicles were at best treated with apathy when they first appeared on our roads a few decades ago, as they were known for shoddy build quality and poor after-sales support.
However, during the 2010s and early 2020s, Chinese automakers invested billions into the quality of their cars and did their homework on the types of buyers they would have to cater to should they wish to achieve any success in South Africa.
This has clearly paid dividends. Few bad words can be said for modern cars of Chinese descent and local consumers have spoken with their wallets, essentially saying that they do not care where a car is from anymore, as long as it offers value for money – a box that nearly each and every model out of China ticks off.
In 2019, five Chinese makes reported sales to industry body Naamsa across the light vehicle (passenger and light commercial) segment, making up 12% of the total number of light vehicle brands and 2% of the overall new light vehicle sales that year.
Compatriots GWM and Haval supplied 96% of those sales.
Fast forward to 2024, and nine Chinese light vehicle brands now report sales to Naamsa, many of which are complete newcomers, and make up 21% of the overall count of light vehicle brands and 9% of all light vehicles sold so far in 2024.
Seeing the potential in South Africa, the country welcomed several new badges from China in these five years including BYD, Chery, Dayun, DFSK, Foton, GAC Motor, Jaecoo, LDV, and Omoda.
“GWM and Haval remain significant players in this space, but have been joined by Chery, and together these three makes have sold 88% of Chinese-branded vehicles domestically this year,” said Andrew Hibbert, Auto Data Analyst and Team Lead at Lightstone.
While not as dramatic as the light vehicle market, Chinese makes have also grown in the other commercial (commercial vehicles with a GVM > 3.5t) markets’ space.
In 2019, three makes shared 7% of overall sales compared to four makes contributing 21% in 2024.
Brands and related sales are not the only areas in which China has seen growth over the last five years, however.
“In 2019, vehicle imports from China accounted for 2% of all light vehicles sold in South Africa, with Volvo (although currently owned by Geely, it is still considered a Swedish brand) being the only non-Chinese make imported from China,” said Hibbert.
“But by 2024, the picture had changed, with twelve makes – including Ford, Kia, and Peugeot – imported from China making up 10% of all light vehicle sales in South Africa.”
These figures, impressive as they are, do not even show the complete picture.
It is only the more well-established manufacturers that report their sales figures to Naamsa every month. Several others do not, including BYD, DFSK, and LDV.
Hence, it is highly likely that Chinese automakers are taking over the South African market quicker than it looks.
Well aware of the success their compatriots enjoy domestically, several other Chinese brands have committed to setting up shop in South Africa in the not-so-distant future.
These include Jetour, a subsidiary of Chery, and possibly Wey, which counts itself as an offshoot of GWM. Geely, which exited the country over a decade ago, is looking poised for a comeback, too.
Join the discussion