Chinese carmakers are dominating the South African market, outselling Western, American, and Japanese brands. South Africans are increasingly buying Chinese brands like Chery and Haval due to affordability and features. Chinese OEMs saw an 86% sales volume increase, with Chery and Haval leading the way.

Japanese leaders Toyota and Suzuki are losing market share in South Africa as Chinese carmakers gain traction. Chinese brands offer competitive pricing, feature-rich vehicles, and premium features in entry-level models. South African government incentivizes local manufacturing, likely benefiting Chinese OEMs due to successful vehicle sales.

Chinese carmakers are looking to invest in local production in South Africa, particularly for hybrid and electric vehicles. Incentives are being provided to promote local assembly and manufacturing, with discussions underway between the government and Chinese carmakers. The push for local assembly includes raising import duties to protect South African manufacturers.

Local manufacturers in South Africa facing competition from Chinese imports seek import duties, but the threat of new tariffs is low. Chinese car brands in South Africa face challenges like a growing service network and lower resale value compared to Japanese and Korean rivals. China’s strength in negotiations makes tariffs unlikely.

Read more at Yahoo Finance: China-made motor sales surge in South Africa, cutting into rival brands’ market dominance