Published by Global Banking & Finance Review®
Posted on September 10, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleSouth Africa is in discussions with Chinese automakers to enhance local production, focusing on hybrid and electric vehicles. Tariff changes are also being reviewed to protect the local industry.
By Sfundo Parakozov
JOHANNESBURG (Reuters) -South Africa is in talks with Chinese automakers to encourage them to invest in local production, with one manufacturer showing strong interest in building cars locally, a senior government official said on Wednesday.
Africa's most developed car manufacturing hub is at an inflection point, with a drop in domestic output and a surge in imported vehicles, mostly from China.
Competition is intensifying, meanwhile, with the likes of Toyota and Volkswagen vying for market share against electric vehicle producer BYD as well as Chery, Great Wall Motor and Beijing Automotive Group (BAIC).
Trade, Industry & Competition Deputy Minister Zuko Godlimpi told lawmakers in parliament that discussions are under way with several Chinese automakers to manufacture their cars in South Africa instead of importing them.
"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.
One Chinese company had talks with the trade and industry department in August and expressed an interest in establishing operations in either East London or Port Elizabeth, he said.
To escape pressure from a damaging price war in their home market, Chinese automakers are expanding into Africa in search of profits. BYD and Chery are among about 15 Chinese car brands active in South Africa, with Geely, Leapmotor and Changan set to join them soon.
South Africa is also reviewing its tariff regime as it seeks to protect the sector from low-cost imports.
"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, adding that such changes take time to implement.
(Reporting by Sfundo ParakozovWriting by Nqobile DludlaEditing by David Goodman)
South Africa is in talks with Chinese automakers to encourage them to invest in local production, with particular interest in manufacturing hybrid and electric vehicles.
Chinese automakers are expanding into Africa to escape a damaging price war in their home market and to seek profits, with brands like BYD and Chery already active in South Africa.
South Africa is reviewing its tariff regime to protect the automotive sector from low-cost imports and is considering raising import duties to ensure that cheap imports do not undermine local manufacturing.
One Chinese company expressed interest in establishing operations in either East London or Port Elizabeth, as mentioned by Deputy Minister Zuko Godlimpi.
South Africa's car manufacturing industry is at an inflection point, experiencing a drop in domestic output alongside a surge in imported vehicles, primarily from China.
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