Chinese OEM expansion accelerates with Chery anchoring South Africa strategy

Chinese manufacturers such as Chery and BYD are rapidly deepening their presence in South Africa through a combination of new brand launches, dealership expansion, and potential access to existing manufacturing capacity, including the Mercedes-Benz plant in East London (KuGompo City). In April, Chery confirmed plans to introduce its iCar (iCaur) brand to South Africa, building on earlier Q1 growth in markets such as Ghana through partners like Zonda Tec. This expansion goes beyond imports, signalling a broader shift toward cost-led competition, with Chinese vehicles entering the market at significantly lower price points, including sub-R350,000 offerings. This pricing strategy is materially undercutting traditional Original Equipment Manufacturer (OEM) segments, particularly in entry-level and mid-range categories historically dominated by Japanese and European brands. The impact is already visible in dealership responses and growing pricing pressure across South Africa’s automotive market. For incumbents and new entrants alike, competing effectively will require sharper localisation strategies, disciplined pricing, and strong distribution partnerships as Chinese OEMs redefine value benchmarks.

Data courtesy: NAAMSA, Mail & Guardian, Zawya; 2024-2026

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