Chinese automakers are stepping up investment in South Africa, with Beijing Automobile Group (BAIC) and Chery Automobile announcing plans to expand local manufacturing. This is a move that highlights Africa’s growing role in the global auto industry.
South Africa is emerging as a key destination for these strategic investments due to its established automotive infrastructure and growing consumer demand.
South Africa as a testing ground
BAIC is one of about 18 Chinese brands currently operating in South Africa, along with BYD and Chery. The company’s Gqeberha plant in the Eastern Cape is currently assembling the BAIC B40 Plus and Beijing X55 Plus SUV models.
BAIC South Africa plans to begin assembling its new B30 off-road SUV at the same facility as early as January, Chief Financial Officer Anele Geza said.
This move is a major step towards expanding local production and deeper integration into our South African manufacturing footprint.
At the B30 launch event, Geza said the new B30 internal combustion engine and hybrid models will be assembled locally using a complete knockdown (CKD) process. The process requires assembling the car from a large number of small parts to increase local content.
The company’s current models are manufactured using a semi-knockdown method, with large, partially assembled components imported and completed locally.
South African Automotive Master Plan 2035
The expansion is in line with South Africa’s Automotive Master Plan 2035, which aims to increase annual vehicle production from approximately 600,000 to 1.4 million vehicles and increase local production.
Global carmakers such as Toyota and Ford, which already operate plants in South Africa, are urging new entrants to commit to local manufacturing to strengthen the industry’s long-term viability.
BAIC South Africa CEO Yang Yixing reaffirmed the company’s long-term commitment to the country. he said:
“We will continue to steadily expand local production and value creation as we continue to introduce new models.”
Chery Eyes South African Assembly Plant
Meanwhile, another Chinese car giant, Chery, which owns sister brands Omoda and Jaecoo, is considering plans to set up a car assembly plant in South Africa, an investment that could create jobs and provide a major boost to the country’s car sector.
The company confirmed that it is conducting a feasibility study for local production to strengthen its presence in a market where interest in Chinese cars is rapidly increasing.
“The company is currently conducting a feasibility study in South Africa, which remains a key focus for both Omoda and Jaku,” the company said. “This country plays a key role in our broader global strategy and we are carefully evaluating opportunities to expand our presence and meet growing local demand.”
China’s global movements
Globally, Chinese automakers are expanding their manufacturing footprint to diversify production and circumvent trade barriers. Chery Automobile also said it plans to bring some of its Chinese suppliers into South Africa to meet local content requirements.
“We are interested in making long-term investments in South Africa,” the company said.
