2 Chinese car manufacturers invested in South Africa this week

In the arms race to secure as much of the South African market as possible, both Chery and Haval this week invested in the country by means of new parts warehouses and distribution centres.

Chery cut the ribbon of its new parts warehouse on 29 March, one day after Haval announced that it, too, moved into a new parts distribution centre on 28 March.

These investments were made to bolster the respective manufacturers’ capacity for customer support in South Africa.

Chery

In the 14 months since Chery re-opened its doors in South Africa, the Chinese brand has gone from strength to strength which has necessitated a new parts warehouse in Boksburg, Gauteng with double the storage space of its previous outfit.

The new location will hold R70-million worth of stock at all times and it is capable of accommodating up to R100-million in parts if required – representing over 4,500 different part lines.

These components include body panels and other replacement parts for accident-damaged vehicles, service/maintenance parts, and accessories such as retractable side steps, a range of tow bars, and cargo and styling add-ons. 

The upgraded facility will also make use of electronic identification systems to easily find, pick, and dispatch stock with an aim of achieving a fill rate of 98% which will “ensure that customers do not wait longer than normal to have their vehicles serviced or repaired,” said Floris du Toit, head of aftersales services at Chery South Africa.

Moreover, the new warehouse provides space for future expansion with one potential plan being to establish a dealer and staff training facility on the grounds focusing on dealer sales and after-sales support specifically for Chery and Omoda vehicles.

“Chery is also investigating smaller regional distribution centres that would further improve parts distribution by placing the high-volume service parts closest to customers,” said Du Toit.

Chery South Africa parts warehouse

Haval

Following two years of accelerated growth, Haval South Africa outgrew its original parts distribution centre and had to move into a larger facility in Midrand, Gauteng.

The new warehouse will allow the manufacturer to more readily service local and cross-border clients by stocking a larger selection of small parts that dealers can order in small quantities, as well as fast-moving service, maintenance, and repair parts for current and upcoming Haval models.

“The new facility allows for streamlining of processes and operations to a greater scale which will reduce lead times and increase parts supply fill rates,” said Yusuf Patel, head of aftersales at Haval’s domestic subsidiary. 

Haval South Africa parts warehouse