South Africans paying double for the cheapest Chinese cars

Chinese cars can cost up to R240,000 more in South Africa than they do in their home market.

Chinese vehicles have soared in popularity over the last few years owing to their affordability relative to legacy brands, but these “bargain” prices are still significantly more than what people are paying for them in other countries.

Same cars, different worlds

At a glance, it’s hardly surprising to see that Chinese cars are significantly cheaper in China than they are over here.

After all, they are locally made and are therefore not subjected to the various costs associated with importing vehicles, from shipping costs to an import duty of between 18% and 25%, depending on the powertrain.

Even with those considerations in mind, it is still alarming to see how stark the variations in price can be for the same product by the time a Chinese car reaches South Africa.

TopAuto looked at South Africa’s best-selling Chinese automaker – Chery – to get a better sense of what we are paying for our cars compared to citizens in the People’s Republic.

These were the result for Chery’s three primary models in its Tiggo Pro SUV range:

Note that the Tiggo 4 prices are being compared to the pre-facelift models in China, as the post-facelift models are sold as a separate vehicle called the Tiggo Cross in South Africa:

The Tiggo 7 costs 52% less in China than it does here, while the Tiggo 8 is 37% cheaper.

Even the Tiggo 4, which is currently the most affordable Chinese car on sale in our market, costs R120,000 less in China (44% less).

This is not a trend that is unique to Chery, either, as a similar pattern can be seen with other Chinese brands in South Africa.

The following table shows a price comparison for four other automakers – Haval, Jaecoo, Jetour, and Omoda:

It’s important to mention that the cars being compared are not always identical, as companies often tailor the specification of models to suit different markets.

For example, the smaller price gap seen with the Omoda can be attributed to the fact that the C5 is sold with a cheaper, naturally aspirated, 1.5-litre model in South Africa, whereas the Chinese market only offers a turbocharged version of the same engine.

In any case, the end result is the same for anyone trying to buy a car – Chinese autos are noticeably more expensive here than in China.

Again, it’s easy to blame this on the fact that these vehicles are imported while Chinese consumers can enjoy them at their best price point, but the same cannot be said for South Africans buying South African-made vehicles.

For example, the Toyota Corolla Cross is a family crossover made at the company’s factory in Durban, which currently sells for a minimum of R414,800.

This is a car that is comparable to something like the Jetour Dashing or Chery Tiggo 7 Pro, and yet it retails for a similar price despite being domestically produced.

In other words, motorists are paying roughly the same prices for foreign-made Chinese cars as they are for locally-made South African ones.

It’s a growing source of frustration for South African motorists, who seem to be paying increasingly high prices for new cars regardless of where they are coming from, especially when you consider that the average formal salary here is lower relative to most developed countries.

One of the reasons China’s cars are so cheap (and South Africa’s are not) is because the Chinese government plays a substantial role in supporting and subsidizing its automotive industry.

This is an issue that was recently highlighted by Toyota South Africa Motors CEO Andrew Kirby, who urged the government to take urgent action to protect local automakers from the influx of cheaper, imported brands.