New Kings of the Road: How China’s Car Giants Are Winning Over South African Drivers

Chinese car manufacturers are fast changing the face of South Africa's motor retail sector, upsetting entrenched motor industry giants and rewriting shopping trends. Within a span of five years, the market for Chinese cars has jumped from 2% to 9% of total light vehicle sales, as domestic drivers more and more choose affordable, feature-packed cars from marques such as Chery, GWM (Haval), Omoda, and Jaecoo.

 

This boom is powered by aggressive prices, cutting-edge technology, and a sharp value for money-characteristics that strike a chord among South Africans wanting affordable options with economic pressures biting. While their top-line names like BMW, Mercedes-Benz, and Audi experience their sales fall by as much as 70% in the last decade, Chinese automakers are taking over the gap left behind, and 13 have already made a presence while there are more scheduled to enter into the market.

 

But this disruption comes with challenges. Critics point to issues regarding after-sales support, dealership networks, and long-term reliability, citing that most Chinese brands are still establishing their reputations and infrastructure in South Africa. The market is also oversaturated, with established players such as Chery and Haval now fiercely competing against a tide of new entrants, at times eating into each other's sales.

 

In spite of all these challenges, Chinese brands are set to move even faster, particularly with the launch of new energy vehicles and local production, which presents a new bold direction for South Africa's automotive industry.

 

Source: Forbes Africa