South Africa is negotiating with major Chinese carmakers to boost local vehicle production and reduce reliance on imports. A senior government official confirmed that one manufacturer has already shown strong interest in building cars in the country.
Africa’s most advanced auto manufacturing hub is at a crossroads, facing declining domestic output alongside rising imports, many of which come from China. This shift has intensified competition between established players such as Toyota and Volkswagen, and newer challengers like Chinese electric vehicle (EV) makers BYD, Chery, Great Wall Motor, and Beijing Automotive Group (BAIC).
Deputy Minister of Trade, Industry and Competition Zuko Godlimpi told lawmakers on Wednesday, September 10, that the government is in active discussions with several Chinese automakers. The talks are aimed at convincing them to assemble vehicles in South Africa rather than flooding the market with imports.
“One area of their interest is to invest in hybrid vehicles and electric vehicles because that is the market they are servicing globally,” Godlimpi explained.
According to him, one Chinese company met with the department in August and signaled interest in setting up operations in East London or Port Elizabeth, both key automotive hubs.
Chinese automakers are increasingly eyeing Africa to escape fierce competition and damaging price wars at home. Already, around 15 Chinese car brands operate in South Africa, including BYD and Chery. Others such as Geely, Leapmotor, and Changan are preparing to enter the market soon.
To shield its auto industry, South Africa is also reassessing its tariff regime to better protect local producers from low-cost imports. “We’ve been trying to move up to the highest ceiling of import duties to make sure cheap imports do not price out South African-manufactured cars,” Godlimpi said, while cautioning that such policy shifts take time to implement.
The push to attract investment from Chinese manufacturers is part of South Africa’s broader strategy to secure jobs, modernize its auto sector, and position itself as a hub for hybrid and electric vehicle production on the continent.
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