- Chinese automakers like BYD and Chery are entering African markets, using South Africa as a base to drive EV and hybrid adoption across the continent.
- They plan local production and low-cost models to compete with legacy brands and tap into Africa’s growing auto demand.
Chinese carmakers are accelerating efforts to unlock Africa’s automotive market, targeting the continent with electric and hybrid vehicles. This shift comes as the United States and Europe impose new trade restrictions, forcing Chinese firms to seek alternative markets.
Africa, home to over a billion people, presents huge long-term potential. However, low incomes, high import duties, and weak infrastructure have discouraged manufacturers. Unreliable electricity and limited charging stations have also slowed the adoption of electric vehicles (EVs).
Still, Chinese companies like BYD, Chery Auto, and Great Wall Motor (GWM) are betting that affordable prices will help them succeed where others have failed. These firms use South Africa as a launchpad for broader expansion. “We treat South Africa as a significant market for our global expansion,” said Tony Liu, CEO of Chery South Africa. He called it a “gateway to the African continent.”
Nearly half of the 14 Chinese automotive brands now active in South Africa only entered the market last year. More brands, DongFeng, Leapmotor, Dayun, and Changan, will launch soon.
As competition grows, companies are exploring local production to reduce costs and benefit from government rebates for assembling vehicles domestically. Chery, already South Africa’s second-largest Chinese automaker, is considering partnerships or building a factory to serve local and export markets.
Chery’s premium brand, Omoda & Jaecoo, is also conducting feasibility studies for local assembly, according to its South African general manager, Hans Greyling.
Local production had not been cost-effective for GWM. But now, with stronger sales, the company is re-evaluating. “We need to revisit those feasibility studies in the next 12 months,” said COO Conrad Groenewald.
Meanwhile, Chinese automakers face increasing challenges in developed markets. The U.S. has imposed 100% tariffs on Chinese EVs, and the EU has also introduced steep import duties. Slower-than-expected EV adoption in wealthy countries has only added to the pressure.
In contrast, Africa offers room to grow. Though small today, South Africa produced just under 600,000 vehicles last year, and the government aims to more than double that to 1.5 million by 2035.
According to industry estimates, Sub-Saharan Africa could support 3 to 4 million new vehicle sales annually. Chinese automakers are positioning themselves early to capture that growth. Chery plans to launch eight hybrid models in South Africa, including five extended-range plug-ins and three standard hybrids. Next year, it will introduce two small crossovers and a pickup truck.
Furthermore, the company aims to expand its offerings by bringing in its iCar EV line and Lepas, a newer brand. BYD, China’s top electric and plug-in hybrid vehicle producer, entered the South African market in 2023. It has since expanded its line-up to include the plug-in hybrid Shark pickup, SEALION 6 crossover, and fully electric SEALION 7 SUV.
Auto executives agree that plug-in hybrids are crucial for Africa’s transition. “Battery electric vehicles have not taken off in South Africa,” said Greyling. “We’re focusing more on traditional and plug-in hybrids.”
New energy vehicle (NEV) sales, including hybrids and EVs, more than doubled from 2023 to 2024 in South Africa. Although they make up just 3% of the market, that’s nearly 15,611 vehicles, mainly traditional hybrids.
Chinese brands are optimistic. “Once the market share of NEVs hits 10%, demand will start to explode,” Liu predicted, based on China’s experience.
However, challenges remain. Many African buyers are sceptical about Chinese vehicle quality, the availability of spare parts, and the resale value.
Chinese automakers offer advanced features at lower prices, often under 400,000 rand ($22,500), to address these concerns. “As long as they remain affordable, they will stand out against traditional brands,” said Greg Cress of consulting firm Accenture.
Chery’s Omoda & Jaecoo brand, active since 2023, already operates 52 dealerships across South Africa, Namibia, Eswatini, and Botswana. It hopes to triple sales within 18 months and expand into Zambia and Tanzania.
BYD is also preparing to enter Tanzania, while building its dealership network across East, Southern, and West Africa.
Despite the slow pace of EV adoption, BYD South Africa’s general manager, Steve Chang, remains confident. “Africa has a huge opportunity to leapfrog from internal combustion engines to renewable energy cars,” he said.
In conclusion, Chinese carmakers see Africa as a backup market and the next frontier for affordable, energy-efficient mobility.