Chery and Haval have shown strong growth in South Africa in the past decade, with their combined sales rising from 1,725 in 2014 to 31,897 in 2024. Their growth has mainly occurred in the past five years, as South Africans have come under increasing financial pressure and are looking for cheaper options. This has resulted in a substantial shift in South Africa's automotive industry as traditional German luxury brands such as BMW, Mercedes-Benz, and Audi come under pressure from Asian competitors.
The Chinese brands are also not just cheap but offer high-quality vehicles at significantly lower prices. While Chinese brands are also very affordable, they are often also competitive in terms of technology and luxury. Many incorporate advanced features into their vehicles, such as autonomous driving capabilities, connectivity, and enhanced safety features.
Norman Lamprecht, head of trade and research at Naamsa, told Daily Investor that Chinese brands have leveraged the search for value to grow so quickly in South Africa. Lamprecht explained that South African motorists already benefit from the most choices compared to the automotive market size in the entire world. In 2023, there were 46 passenger car brands with 2,172 model derivatives to choose from in South Africa.
In the past few years, competition has been fierce with affordability being the main driver behind new vehicle sales and...
Shaun Jacobs.
