South Africa is in discussions with several Chinese automakers to encourage them to invest in local production, according to Zuko Godlimpi, the deputy minister of trade, industry, and competition. Godlimpi told members of parliament that one company has already shown significant interest in establishing a manufacturing plant in either East London or Gqeberha.
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The talks come at a crucial time for South Africa’s automotive industry. Domestic car production is declining while vehicle imports, particularly from China, are surging. Chinese brands like BYD and Chery are intensifying competition with established players like Toyota and Volkswagen. Chinese automakers, seeking to escape a fierce price war in their home market, are increasingly expanding into Africa.
According to Godlimpi, one key area of interest for the Chinese automakers is the local production of hybrid and electric vehicles (EVs). This aligns with their global market strategy. South Africa is also reviewing its tariff regime to protect the local sector from low-cost imports. Godlimpi noted that the country is trying to move towards the “highest ceiling of import duties” to ensure that cheap imports do not undercut South African-manufactured vehicles.
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This potential investment could be a major boost for the local economy and help South Africa’s auto sector adapt to the global shift toward electrification.
