Chinese cars taking over South Africa

South Africa’s automotive landscape is undergoing a dramatic transformation, with Asian brands taking over a market once dominated by Western brands. 

In particular, Chinese brands such as GWM (Haval), Chery, and Omoda have gained popularity and are even starting to challenge traditional Asian giants like Hyundai and Kia. 

Once dominated by established European and American brands, South Africa’s market is now undergoing rapid and significant change, driven by the growing presence of Asian automotive manufacturers. 

From China, India, Japan, and South Korea, these players are reshaping the continent’s automotive supply chain, vehicle sales landscape and local manufacturing capacity. 

Dylan Petzer, National Vice-Chairman of the Tyre, Equipment, Parts Association (TEPA), stated that the arrival of these Asian brands is not a gradual progression, but rather a rapid wave. 

“This is no longer the familiar automotive landscape we knew. It is a major realignment in how Africa moves, literally and economically,” Petzer said.

China, in particular, has established itself as the dominant source of automotive aftermarket parts in South Africa. 

Since 2018, China has been the top supplier, and in 2021, a striking 64% of all imported aftermarket parts into South Africa were made in China. 

“That is not simply influence; it’s market dominance,” Petzer said, with other countries losing ground to Chinese competitors.

India has also made significant inroads, especially in the small and entry-level vehicle segments where cost-effectiveness is paramount. 

“Indian manufacturers have emerged as key suppliers of affordable vehicles, addressing the pressing need for budget-friendly transport options,” Petzer said. 

The Japanese and South Korean brands, long-standing players on the continent, are also being challenged to rethink their strategies in the face of growing competition. 

Asian brands take over

This shift is not limited to imports, with Asian manufacturers increasingly investing in local assembly and parts production. 

Chinese firm BAIC, for example, has invested R11 billion in a new plant in Gqeberha. Toyota, in collaboration with Thailand’s Ogihara, is putting more than R1.1 billion into its operations in Durban. 

Relatively unknown Chinese supplier Yanfeng Plastic Omnium has invested R1 billion in Pretoria to produce components for BMW. 

“These investments suggest a dual strategy,” Petzer said. “On one hand, it shows belief in the potential of Africa’s automotive market; on the other, it allows these companies to meet local content requirements and reduce import duties”

While this foreign investment brings benefits such as job creation and infrastructure development, it also tightens Asian manufacturers’ grip on the market. 

According to Petzer, the challenge is finding a balance between welcoming foreign investment and ensuring local businesses are not sidelined.

Established original equipment manufacturers (OEMs) such as Ford, BMW, Volkswagen, and Toyota are responding by seeking efficiencies through partnerships and increasingly sourcing parts from Asian suppliers to remain competitive. 

“These companies face difficult decisions –  should they prioritise cost-saving measures or continue supporting local suppliers to meet government industrial targets?” Petzer said.

Local parts manufacturers, meanwhile, are under increasing pressure. They are being squeezed by the influx of cheaper imports and the widening technology gap, especially as the global shift towards electric vehicles (EVs) accelerates.

“How does a small, independent parts manufacturer in a town like Springs compete with high-volume, high-tech factories in Asia?” Petzer asked. “This is a tough reality, and there is no simple answer.”

Despite the challenges, Petzer believes opportunities exist through specialisation and high-quality manufacturing. This can be boosted by targeted government support in areas such as EVs. 

Government support is vital in this environment, with initiatives such as the Automotive Investment Scheme (AIS) and the National Association of Automotive Component and Allied Manufacturers (NAACAM) programmes playing an essential role in supporting local industry. 

“These interventions are not just helpful; they are critical for survival,” Petzer said. “They protect not only businesses but also local jobs and the development of crucial skills.”

Projections suggest that within the next decade, Asian brands could account for 40–45% of vehicle sales in South Africa.

Petzer notes that local and international OEMs will need to deepen ties with Asian suppliers and explore joint ventures and technological partnerships to maintain their market position.  

Policy will play a critical role in determining outcomes. The African Continental Free Trade Area (AfCFTA) can boost intra-African trade, giving local manufacturers room to scale up. 

Meanwhile, South Africa’s involvement in BRICS strengthens economic ties with both China and India, influencing automotive trade dynamics.

“The real balancing act lies with policymakers. They must find ways to attract foreign investment while nurturing local industry. If done correctly, we can achieve inclusive, sustainable growth. If not, we risk eroding our industrial base.”