As geopolitical tensions and trade restrictions intensify in the United States and Europe, Chinese car manufacturers are pivoting toward Africa in a calculated bid to tap into one of the world’s last major underdeveloped auto markets. Electric vehicle (EV) and hybrid leaders like BYD, Chery Auto, and Great Wall Motor (GWM) are pushing into African territories—led by a concentrated expansion in South Africa, the continent’s most developed automotive market.
Despite Africa’s massive population of over a billion, historically low disposable incomes, steep import duties, and poor infrastructure—especially for EVs—have limited global carmakers’ presence on the continent. However, Chinese manufacturers see an opening where others see obstacles: competitive pricing, hybrid solutions better suited to local power realities, and government incentives in South Africa for local production.
“We treat South Africa as a very important market for our global expansion,” said Tony Liu, CEO of Chery South Africa. “It is the gateway to the African continent.”
Rapid Expansion and Local Assembly Ambitions
South Africa currently hosts 14 Chinese automotive brands, nearly half of which entered the market just last year. New entrants including DongFeng, Leapmotor, Dayun, and Changan are expected to join soon, capitalizing on growing appetite for affordable, tech-forward vehicles.
Chinese firms are also eyeing local production opportunities to qualify for South Africa’s rebate schemes on domestically produced vehicles. Chery, now the second-largest Chinese auto company in the South African market, is evaluating potential partnerships or even the construction of its own manufacturing plant. Its premium sub-brand Omoda & Jaecoo is also conducting feasibility studies for local assembly.
For GWM, South Africa’s current Chinese sales leader, local production was previously considered uneconomical. However, COO Conrad Groenewald revealed that with improved economies of scale, plans to revisit semi-knockdown (SKD) kit assembly and component sourcing are now back on the table.
Trade Tensions Redirect Strategy
The push into Africa comes amid worsening trade relations with the West. Both the European Union and the United States have imposed punitive tariffs on Chinese EVs—up to 100% in the U.S., effectively wiping out China’s traditional pricing advantage. Attempts to expand into large emerging markets like India and Brazil have also faced barriers.
With Western markets growing more difficult to penetrate and EV growth slowing in developed economies, African nations—despite being nascent markets—represent significant long-term promise. According to South African government projections, the country’s auto production could reach 1.5 million units annually by 2035, up from just under 600,000 last year. Regionally, Sub-Saharan Africa’s potential is estimated at 3 to 4 million new car sales per year, suggesting massive untapped demand.
Hybrids Lead the Charge
While full EV adoption is still limited in Africa due to charging and power supply constraints, plug-in and traditional hybrids are gaining ground. Chery plans to introduce eight hybrid models, including five plug-in hybrids, three traditional hybrids, and several new crossovers and pickups. The company also aims to debut its EV line iCar and another brand, Lepas, in South Africa soon.
BYD, China’s leading EV and hybrid manufacturer, entered South Africa in 2023 and recently doubled its local line-up, adding the plug-in Shark pickup, SEALION 6 hybrid, and SEALION 7 fully electric SUV.
Executives agree that hybrids are key to near-term growth, especially in regions where full electrification is still impractical. “Battery electric vehicles have not really taken off in South Africa,” said Hans Greyling, general manager at Omoda & Jaecoo. “We’ve gone the route of looking more towards traditional or plug-in hybrids.”
Indeed, new energy vehicles (NEVs)—a category that includes hybrids and EVs—accounted for only 3% of South Africa’s new vehicle sales in 2024, but that figure more than doubled year-on-year.
Price, Tech, and Strategic Patience
Chinese brands continue to face consumer skepticism over durability, parts availability, and resale value. Yet, by offering technologically advanced models priced under 400,000 rand (~$22,500), they are winning over price-sensitive African consumers. According to Greg Cress of consulting firm Accenture, “as long as they remain affordable from an up-front cost perspective, they will be differentiated against legacy brands offering similar specifications.”
Omoda & Jaecoo, active in South Africa, Namibia, Eswatini, and Botswana, plans to triple sales within 18 months and expand into Zambia and Tanzania. BYD, likewise, is scaling its dealership footprint across East, West, and Southern Africa, with a first-time entry into Tanzania on the horizon.
Despite slow EV adoption, BYD’s South African head Steve Chang is optimistic. “Africa has a very big opportunity to leapfrog from internal combustion to renewable energy vehicles,” he said.
Conclusion: Africa’s EV Moment on the Horizon
While challenges persist, the momentum behind Chinese automakers in Africa signals a shifting global auto landscape. If they can successfully navigate local conditions—power supply, infrastructure gaps, and regulatory complexities—China’s automakers may not just fill the vacuum left by Western brands, but reshape the continent’s automotive future.
As African governments pursue industrialization and cleaner transport, and as consumers seek affordable, fuel-efficient mobility, Chinese firms appear well-positioned to lead the charge—hybrid by hybrid, plant by plant, market by market.