Haval/GWM Cars

Insight: Chinese car brands claiming a bigger slice in South Africa’s new vehicles market

In a relatively short space of time, Chinese vehicles have made significant inroads into the South African market.

Haval and Chery vehicles have become a common sight on our roads and it seems almost every second week there’s a new Chinese brand vying for a slice of the pie.

But have their sales figures grown sufficiently to keep the chief executives of rival manufacturers up at night?

According to figures released by Lightstone, vehicles from Chinese brands account for 2% of light vehicle sales in South Africa in 2019. Just five years later, that number has grown to 9%, so far in 2024.

While an increasing array of new brands are entering the fray, including recent entrants like GAC and LDV and imminent introductions such as Chery-owned Jetour, the market is still dominated by two main players.

Chery and GWM, including the latter’s Haval brand, currently account for 88% of Chinese branded light vehicle sales in South Africa. Back in 2019 GWM and Haval owned 96% of that space.

Standard Bank says it has seen a consistent year-on-year increase in finance applications for new Chinese cars since 2022. Its data shows the proportion of Chinese car brands having increased from just over 6% in 2022 to 7.4% in the first half of 2024.

This increasing share must be seen in the context of an overall decline in demand for new vehicles in the country.

 
How many GWM Tank 500 units were sold in August 2024?

The GWM Tank 500 has only just hit the market in South Africa, but how many units of this R1.2-million hybrid SUV were sold locally in August 2024? We have the figures…

The GWM Tank 500 was officially launched in South Africa on 13 August 2024, arriving as a petrol-hybrid SUV featuring 3 rows of seating and a R1 222 900 price-tag. So, how many examples were registered locally last month?

Well, according to figures reported to Naamsa, GWM South Africa sold 13 units of the Tank 500 in what was a partial month (effectively 2 weeks) for the nameplate. Interestingly, 12 of those units were registered via the dealer channel, with the remaining unit listed as a “single” registration (a vehicle GWM SA kept and licensed for its own use).

 
GWM Tank 500 vs Ford Everest: What Should You Buy?

How well does the recently launched GWM Tank 500 stack up against one of the Adventure SUV segment’s most formidable products – the Ford Everest? And, which one of these SUVs represents a stronger buying proposition? Let’s take a closer look!

Since its local launch in 2022, the 3rd-gen Ford Everest has gained a strong following in our market; it’s the 2nd-best-selling bakkie-based 7-seater behind the formidable Toyota Fortuner (September 2024).

For context, in the first 7 months of 2024, the Everest racked up 1 856 sales while the Fortuner managed to sell an incredible 5 700 units over the same period. However, bear in mind that the Ford has a larger footprint and newer tech than the Toyota. Therefore, it commands a premium over its Japanese rival.

What should you buy: GWM Tank 500 or Ford Everest?

As it strives to provide excellent value and aftermarket support to its growing customer base, GWM also aims to shatter the perception that it is “a bakkie brand”. Given the success it has achieved with Haval, the Tank and Ora sub-brands are well poised to increase the Chinese automotive giant’s foothold.

To that end, the Tank 500 – with its flashy exterior styling, an elegantly executed interior and a generous list of standard features – makes a bold statement, which many buyers will be attracted to. The package, however, is let down by its middling on-road performance and seemingly poor fuel consumption.

Nonetheless, the Tank 500 offers “a lot of SUV” for its asking price and GWM’s impressive warranty will certainly give buyers peace of mind. We wouldn’t be surprised to see many more Tank 500s on South African roads and we can’t wait to spend more time with the model to evaluate it fully!

 
GWM climbs! SA’s best-selling brands in September 2024

South Africa’s new-vehicle market suffered a 4.1% year-on-year drop in sales in September 2024. Here’s your market overview, including Mzansi’s most popular brands…

Though there’s still hope of improvements in the final quarter of the year, South Africa’s new-vehicle market didn’t manage to return to growth in September 2024, with sales falling 4.1% year on year to 44 081 units. Still, at least that tally represented a (marginal) 1.1% increase compared with August 2024’s effort.

Exports, meanwhile, fell a considerable 38.1% year on year in September to 21 964 units (the 2nd lowest total of 2024). Year to date, exports stand at 289 198 units, a significant drop of 19.7% compared with the same 9-month reporting period in 2023. Local domestic sales are also behind in the year-to-date race, with that tally currently sitting at 401 169 units (5.8% down).

Out of the total reported industry sales in September 2024, Naamsa estimated that 79% represented registrations via the dealer channel, while a hefty 15% were sales to the vehicle-rental industry, 3% to government and 2% to industry corporate fleets.

Again bucking the general market trend, the new passenger-vehicle segment grew 2% year on year to 30 218 units in September 2024, with the rental industry representing a whopping 28% of that total. Meanwhile, the light-commercial vehicle segment slipped 17.1% year on year to 10 914 registrations (a decline no doubt amplified by the discontinuation of the Nissan NP200).

New-vehicle sales summary for September 2024

- Aggregate new-vehicle sales of 44 081 units decreased by 4.1% (1 889 units) compared to September 2023.
- New passenger-vehicle sales of 30 218 units increased by 2.0% (112 units) compared to September 2023.
- New light-commercial vehicle sales of 10 914 units decreased by 17.1% (2 257 units) compared to September 2023.
- Export sales of 21 964 units decreased by 38.1% (13 535 units) compared to September 2023.

10 best-selling automakers in SA in September 2024

1. Toyota – 10 890 units

2. Volkswagen Group – 5 885 units

3. Suzuki – 5 023 units

4. Hyundai – 2 841 units

5. Ford – 2 823 units

6. Isuzu – 1 960 units

7. GWM – 1 740 units

8. Chery – 1 614 units

9. Renault – 1 426 units

10. Nissan – 1 425 units

 
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