Chinese car imports to South Africa increase - Gazeta Express
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NEWS

Express newspaper

04/10/2024 17:58

Chinese car imports to South Africa increase

NEWS

Express newspaper

04/10/2024 17:58

As China and the West push for electric cars, diesel and gasoline-powered cars dominate the market in Africa. As VOA correspondent Zaheer Cassim reports, Chinese automakers are offering prices so cheaply to the South African market, the continent's largest, that dealers say other, more established brands are in danger of disappearing.

Ross Gray is looking for a car with gas.

"The reason I'm looking at Chinese vehicles is primarily the price. They're much cheaper than other more well-known brands," says Ross Gray, a resident of Johannesburg.

A Chinese car costs on average half the price of some of the most popular brands from other countries. Ralph Hiebner, regional sales manager for the Chinese company BAIC, says it's the price that draws customers to his store.

""Chinese cars are not cheap, (in the sense that China is crowding out the South African market to get rid of surplus cars) but they offer good terms in terms of monthly payments, and that is what attracts South African customers the most," says Mr. Hiebner.

Chinese manufacturers have become serious contenders in the South African automotive industry, says Mari McGeer, a salesperson for another Chinese company, Haval.

"Some other firms are closing, because of the Chinese subsidiaries that are increasing. I can say that we are thriving," says Ms. McGeer.

In the past, Chinese cars were not popular with South African consumers because of their quality. That seems to have changed now. Ross Gray, a resident of Johannesburg, says there is another reason to buy Chinese cars.

"In South Africa, Chinese vehicles are not on the list of cars that are stolen, as is the case with cars from well-known brands", says Mr. Gray.

Only a third of South Africans own a vehicle. Yet South Africa is the largest car market on the continent.

Ford, Toyota, Volkswagen and Mercedes have manufacturing plants there. They produce for export or the domestic market.

Chinese firms are harming the industry in the country, says Mikel Mabasa, head of the South African Automotive Business Council.

"In the last five years we have seen that firms from China have surpassed many of the most well-known firms we have in the country," says Mr. Mabasa.

He adds that between 2019 and 2023 Chinese car sales have increased by 200%.

The growing popularity is not without its problems. In 2018, BAIC opened a manufacturing plant in the Eastern Cape, but production is said to have stalled due to the pandemic, labor disputes and the fact that it is not a well-known brand in the market.

"Car production there has not yet started due to problems," says Mr. Mikel Mabasa from the Automotive Business Council.

Despite BAIC's problems, South African President Cyril Ramaphosa has shown interest in environmentally friendly cars. He has sought more investment from China, urging Chinese electric car maker BYD to open a factory in South Africa./VOA