A Chinese flag flutters in front of the Great Hall of the People in Beijing, China.
Image: Reuters
As the South African automotive market evolves, a pressing question arises: Are Chinese manufacturers in South Africa here for the long haul?
This inquiry has gained traction as East Asian brands continue to disrupt the market with a slew of new vehicle introductions.
Chinese brands have made a significant impact, offering a diverse range of vehicles from budget-friendly cars to luxury SUVs and bakkies. The central theme of these offerings is value for money.
Changing consumer preferences
As consumer buying patterns shift, so too do the criteria for purchasing a vehicle. Performance metrics and handling capabilities are increasingly taking a backseat to design and technology.
Today's consumers desire more than just basic features like Bluetooth connectivity; they expect their vehicles to serve as extensions of their mobile devices.
While motoring journalists often critique the calibration disconnect between throttle and gearbox, intrusive safety systems, and subpar fuel consumption figures, these factors seem to have minimal influence on consumer purchasing decisions. The monthly sales figures reflect this trend, indicating that Chinese brands are resonating with the South African market.
Impressive sales figures
Chery South Africa currently ranks sixth in sales, just behind the global powerhouse Ford. GWM and its sub-brand Haval follow closely, with Omoda and Jaecoo South Africa rapidly gaining ground.
Other brands like BAIC and JAC are also making their presence felt, demonstrating that Chinese manufacturers are indeed making an impact, despite lingering doubts about their long-term commitment.
Chery are steadily climbing up the sales charts.
Image: Supplied
In a recent podcast hosted by Michael Pashut, managing director of Changecars, he said that the Chinese manufacturers don’t have any skin in the game.
“The Chinese products unfortunately do not have the back-up in South Africa whether it be the technical know-how, the absolute parts back-up or the genuine desire to deliver for a customer that every brand that is established in South Africa has.
"Toyota, Nissan, BMW, Mercedes, they are physically invested in this country. They are invested with staff at factories, they are invested with a parts chain, they have to make it work.
“The Chinese products have come into South Africa, the cars are imported, they give the franchises to quality dealers, but is that group really invested? What skin in the game have they got?
“If China decides tomorrow South Africa is no longer a market they want to support for whatever reason, what will it take for them to pull out? Zero.” The answer is truly concerning
Commitment to the local market
To gain insight into the intentions of Chinese manufacturers, we reached out to Chery and Omoda & Jaecoo for their perspectives.
Verene Petersen, national marketing manager for Chery South Africa, stated: “Chery South Africa is committed to the local market and is currently conducting in-depth research and feasibility studies to determine the best direction for establishing a manufacturing facility.
"We have a 6,500 sqm parts warehouse in Gauteng and maintain an impressive average order fulfilment rate of 98%.”
Petersen also highlighted the launch of the Chery Foundation in November last year, which aims to reaffirm their commitment to the South African community.
Omoda & Jaecoo say that they are vested in the country.
Image: Supplied
Cedric Cui, country director of Omoda & Jaecoo, echoed this sentiment, asserting that they are dedicated to long-term investment in South Africa.
“We operate one of the country’s most robust aftersales support systems, featuring an 11,000 sqm spare parts facility shared with Chery South Africa, housing 56,000 spare parts valued at approximately R115 million.
"Our expanding dealership network has grown from 35 to 51 retail locations, a remarkable increase of 45.7% in just one year.”
Cui added: “History shows that skepticism often accompanies new entrants in any industry, yet many now-established brands faced similar scrutiny in their early days.
"What truly matters is delivering what local consumers desire: style, luxury features, and cutting-edge technology at competitive prices. Beyond our vehicles, we actively invest in the communities we serve through social outreach initiatives, reinforcing our long-term commitment to South Africa. Omoda & Jaecoo are here to stay.”
So, despite some reservations, it appears that Chinese manufacturers are not merely one-hit wonders.
As with any significant financial decision, consumers are encouraged to conduct thorough research across multiple platforms before making a purchase.
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