Chinese car boom hurting South Africa

European demand for affordable electric vehicles (EVs) from China has hurt the export of internal combustion engine vehicles from South Africa to the region, City Press reports.
Data from the National Association of Automobile Manufacturers of South Africa (Naamsa) shows that carmakers in the country exported 23% fewer vehicles in 2024 than in the year before.
Passenger vehicle exports fell by 25% year-on-year, light commercial vehicle exports by 18%, and truck and bus exports by 19%.
There are two primary reasons behind the popularity of affordable Chinese EVs in Europe: the upcoming ban on the sale of internal combustion engine vehicles and the fact that Chinese carmakers are able to produce and sell EVs at an affordable price.
The former relates to the European Union’s (EU’s) commitment to ensure that all new cars sold on the market do not emit carbon dioxide by 2035.
“This is to ensure that by 2050, the transport sector can become carbon-neutral,” the EU said.
The latter is partly due to government assistance, making China the leading manufacturer of affordable electric cars.
However, Naamsa’s head of commerce and research, Norman Lamprecht, notes that the 23% year-on-year decline may appear worse than it is, as 2023 was a record year for vehicle exports out of South Africa.
399,594 units were exported to 148 countries, roughly 14% more exports than in the year before.
Chinese-made vehicles, including electric, hybrid, and internal combustion, aren’t only taking Europe by storm; they have also proven immensely popular in South Africa due to the value they offer.
Chinese brands like GWM, Chery, and BYD offer vehicles that are affordable, high-quality, and highly competitive in technology and luxury.
Lamprecht previously told Daily Investor that Chinese brands have leveraged the need for value to grow rapidly in South Africa.
Two brands in particular, GWM and Chery, have been available in the country for several years, and their annual sales figures have grown rapidly over the past 10 years.
Combined, the two brands sold 1,725 units in 2014, and 10 years later, they sold 31,897 units in a single year.
In recent years, they have also frequently appeared in Naamsa’s monthly list of the country’s top 10 best-selling brands.
A lot of this growth has come in recent years. According to data from Standard Bank, the proportion of Chinese vehicles financed through the bank grew from 20% in 2022 to 36% in July 2024.

Most affordable EV in South Africa
A relatively new Chinese entrant to South Africa’s motoring market, BYD sells the most affordable electric car in the country: the BYD Dolphin.
The hatchback seats up to five people and is available in two specifications — Standard and Extended — which vary based on the electric motor’s output and the battery pack’s capacity.
The Standard variation costs R539,900 and has an electric motor producing 70kW and 180Nm, and a 44.9kWh battery pack. It offers a claimed range of up to 340km on a single charge.
The Standard BYD Dolphin supports DC fast charging speeds up to 60kW, which will fully charge the battery in less than an hour. AC charging rates max out at 7.4kW.
The Extended-range model is priced at R599,900 and packs a more powerful 150kW/310Nm motor, giving it a 0 to 100km/h time of seven seconds.
It packs a larger 60.5kWh battery pack, which BYD says provides up to 427km of range on a single charge. It also supports faster DC charging at up to 80kW, allowing for similar charging times to the Standard model despite the larger battery capacity.