Maybe about +/- ten years ago, I read a quote in a newspaper article that said in the next 30 years China would produce 90% of the cars built in the world. Now that is not just for Chinese brands as some of the European car manufactures such as Volkswagen and Volvo have factories in China which must be included in the total. Now that is an incredible prediction, so let us just have a look at where we are today and let us take South Africa as an example.
Ten years ago, you may remember some vehicles on our roads such as Chery, Proton and maybe even GWM, but you would probably not give them a second thought as the perception was, they are inferior cars with a low quality build, difficult to get parts and always breakdown. Stick to your reliable Ford, BMW, Merc, and Toyota for peace of mind.
Move forward to December 2024 and examine the existence of Chinese cars travelling on our roads today. I had lunch in Sea point on Sunday on the promenade and was amazed at the amount of new very trendy looking cars passing by most of them brands from China.
It started with Haval part of GWM, then Chery returned to SA again with the Tiggo range, then BAIC, Jetour, Omoda, Geely, BYD, Foton, GAC, JAC, Maxus, and Dayun. It is not over as MG have announced they will be back before the end of 2024 and a new brand Leapmotor will arrive in 2025.
The car market in South Africa declined by 5.6% in the first quarter of 2024 but the number of cars financed by Standard Bank from China has increased considerably. Customers are drawn to these brands for value for money, luxuries included and priced compared to the traditional brands.
And what about the old concern of “how long will this car last,” and what if I need spare parts. Well, this time around it looks like the manufacturers are serious about staying in the country and offering back-up. For example, BAIC has invested in a manufacturing facility in the Coega industrial Development Zone in the Eastern Cape. Chery and GWM have acknowledged they have assembly operations in SA on their radar. (Chery offer a million km warranty on their engines).
Chery have set up a facility to hold parts in SA and assure the consumer the supply chain will operate efficiently so no shortages of parts. GWM has been in SA for some time and has an existing dealer network.
Some examples of what a car from China will cost you….
Dayun Yuehu S5 R399 900
Omoda C5 R447 900
JAC T8 R449 900
GAC GS3 Emzoom R469 900
Chery Tiggo Pro Max R529 900
JAC T9 (Bakkie) R529 900
Haval Jolion HEV R549,950
Omoda C5 GT R589 900
GWM Ora (all electric) R686 950
GWM P-series (Bakkie) R694 950
MaxusT90EV (Bakkie) R1 100 000
Let us see what the market penetration looks like when final numbers are released at the end of 2024.