• South Africa courts Chinese automakers for EV and hybrid investment
• Local production lags, 2024 sales 34% below industry target
• Govt considers higher tariffs to curb cheap vehicle imports

South Africa is in talks with Chinese automakers to invest in its local automotive industry, Deputy Minister of Trade, Industry, and Competition Zuko Godlimpi told Parliament on Wednesday, September 10.

"One area of their interest is to invest in hybrid vehicles and electric vehicles because that is the market that they are servicing globally," Godlimpi said.

The charm offensive aims to revitalize domestic car production, which has slowed in recent years, and curb the import of low-priced Chinese vehicles. In August, Trade Minister Parks Tau stated that 12 companies had closed over the past two years, resulting in the loss of more than 4,000 jobs.

According to Tau, only 515,850 locally manufactured vehicles were sold in 2024, falling short of the 784,509 target set by the South Africa Automotive Masterplan 2035. Imports still dominate the market, accounting for nearly 64% of all vehicle sales.

In Africa's most industrialized country, about 15 Chinese automakers have already established a presence alongside international brands like Volkswagen, Toyota, and Mercedes-Benz. These include Great Wall Motors (GWM), Beijing Automotive Group Corporation (BAIC), BYD, Chery, Omoda, and Jaecoo, which are active in the internal combustion, electric, and hybrid vehicle segments.

The invitation for Chinese companies to produce locally comes as the South African government considers stricter import tariffs. "We've also been trying to move up to the highest ceiling of import duties to make sure that cheap imports do not price out South African-manufactured cars," Godlimpi said.

The automotive sector in South Africa directly employs 115,000 people, with over 80,000 in component manufacturing, according to official data.

Espoir Olodo