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Imports of Chinese cars into South Africa are on the rise

2024-10-04 18:13:15, Kosova & Bota CNA

While China and the West make efforts to increase the number of electric cars, diesel and gasoline cars dominate the market in Africa. As Voice of America correspondent Zaheer Cassim reports, Chinese automakers are offering such cheap prices for the South African market, the continent's largest, that dealers say other, more popular firms are at risk of disappearing.

Ross Gray is looking for a gas car.

"The reason I'm looking at Chinese vehicles is primarily the price. They are much cheaper than other more popular firms," ??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 of 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 choking the South African market to get rid of excess cars) but they offer good terms in terms of monthly payment, and that is not what attracts customers the most South Africans," 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.

"Several other firms are closing, due to the increasing number of Chinese subsidiaries. I can tell 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. Johannesburg resident Ross Gray 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. However, South Africa is the continent's largest car market.

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

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

"In the last five years we have seen that firms from China have surpassed many of the more popular 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 problems. In 2018, the BAIC firm opened a manufacturing plant in the Eastern Cape, but production reportedly stalled due to the pandemic, employment disputes and the fact that it is not a well-known firm in the market.

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

Despite BAIC's problems, South African President Cyril Ramaphosa has shown interest in cars that are not harmful to the environment. He has sought more investment from China by asking Chinese electric car manufacturer BYD to open a factory in South Africa./ VOA