Chinese carmakers Great Wall Motor (GWM) and Chery Automobile are reportedly preparing to begin vehicle assembly operations in South Africa.
Tony Liu, CEO of Chery’s South African operations, stated that the company is on track to almost double its local sales to 39,000 vehicles this year. Speaking at an automotive event in Gqeberha, Liu revealed that Chery will make a decision on establishing a completely knocked down (CKD) assembly plant within the next three to six months.
According to Bloomberg, the growing market share of fully assembled vehicle imports from China and India is putting strain on South African automakers, leading to renewed calls for higher import tariffs to encourage local assembly and protect employment.
Meanwhile, vehicle sales in South Africa saw a 24% year-on-year increase last month, reaching 54,700 units, with projections suggesting a return to pre-pandemic levels by 2025, indicating renewed economic optimism in the country.
South Africa’s automotive sector hosts manufacturing plants from major global brands like Mercedes-Benz Group, BMW, Ford, Toyota, and Volkswagen. As per the report, Suzuki Motor has also experienced notable sales growth in recent years. Chery, with its multiple brands, claimed fourth place in passenger car sales last month, surpassing Hyundai Motor, Ford, and Kia. GWM followed in sixth place, while Toyota maintained the top position.
Chery is considering the acquisition of an existing facility to simplify its vehicle assembly operations, although Liu did not disclose any cost details or reveal specific plants under evaluation. Meanwhile, GWM’s local COO, Conrad Groenewald, stated that the company is in talks with domestic assembly firms to explore joint production of pickup trucks.
Groenewald noted that GWM’s preliminary evaluations suggest assembling vehicles locally could boost profit margins by 4% compared to importing fully built units. The company also plans to grow its domestic sales by 20% over the next year.
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