Tech and value help Chinese cars make inroads in South Africa
Cheaper Chinese cars are gaining a foothold in cash-conscious South Africa, but manufacturers are yet to produce in-country.
If you’re driving in one of South Africa’s cities and find yourself staring at an unfamiliar car logo, you may well be looking at one of the many Chinese cars that are proving increasingly popular among motorists.
Chinese-owned brands have been making major strides in the market’s mid-range segment, where cars are typically priced below the R600,000 ($33,000) mark. In the crossover SUV segment or “compact family cars”, two Chinese brands, Haval and Chery, made the top 10 for new car sales in the first half of 2024, according to South Africa’s Automotive Business Council.
They are also selling well in the SUV segment where cars are priced above the R600,000 mark – data from the council shows that Haval and Chery were the top-selling and third-best selling SUVs from January to November 2023.
So what’s making them so successful in the South African market? According to most analysts, it comes down to two things: price and perceived quality.
“The value proposition with them is just so, so good, so superior to legacy automakers. Chinese brands have a different strategy, the cars come fully loaded, what you see is what you get, and the technology is great,” Ciro De Siena, journalist at Cars.co.za, tells African Business.
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Source: https://african.business/2024/11/trade-investment/tech-and-value-help-chinese-cars-make-inroads-in-south-africa
