Chinese car manufacturers, facing export restrictions in the US and Europe, are turning to Africa to expand their market for electric and hybrid vehicles. Companies such as BYD, Chery Auto, and Great Wall Motor (GWM) are leveraging low prices to gain a foothold in a region with significant growth potential, despite challenges like low incomes, high import duties, and limited charging infrastructure.
South Africa, the continent’s most developed automotive market, is a key entry point. “We treat South Africa as a very important market for our global expansion,” said Tony Liu, CEO of Chery South Africa, describing it as a “gateway to the African continent.” Nearly half of the 14 Chinese automotive brands in South Africa entered the market in 2024, with more, including DongFeng and Leapmotor, set to follow.
To capitalise on government incentives for local production, companies like Chery and GWM are exploring local manufacturing. Chery is considering partnerships or building a factory to serve South Africa and export to other African nations and potentially Europe. GWM, the largest Chinese automaker in South Africa by sales, is revisiting plans for a semi-knockdown plant as economies of scale improve.
Africa’s automotive market, though small, holds vast potential. South Africa produced nearly 600,000 vehicles in 2024, with projections to reach 1.5 million by 2035. Industry estimates suggest Sub-Saharan Africa could support 3-4 million new car sales annually. Chinese firms are betting on this growth, introducing affordable plug-in hybrids and EVs to compete with established brands like Volkswagen and Toyota.
Chery is launching eight hybrid models in South Africa, including plug-in hybrids and crossovers, with plans to introduce its EV line, iCar, and other brands soon. BYD, which entered the market in 2023, recently expanded its range with hybrid and electric models, including the Shark pickup and SEALION 7 SUV. Plug-in hybrids are seen as critical due to the slow uptake of fully electric vehicles, hindered by unreliable power and limited charging networks.
Sales of new energy vehicles—hybrids and EVs—doubled in South Africa from 2023 to 2024, reaching 15,611 units, or 3% of total vehicle sales. “Once the market share of new energy vehicles reaches almost 10%, demand will start to explode,” Liu said, citing
