The growing popularity of Chinese cars in South Africa appears to know no bounds at the moment. And as the 16th BRICS Summit kicks off in Russia this week, we thought we’d take a closer look at the current market dynamics. According to Daily Investor, Chinese cars in South Africa are gaining traction. And some of the long-favoured brands in the country are struggling to compete against the onslaught of cheap cars.
CHINESE CARS IN SOUTH AFRICA
On the flip side of this popularity, industry experts say Chinese brands are beginning to eat into each other’s market share, as newer entrants struggle to gain traction in a saturated market. At last count, these twelve Chinese automotive brands are on sale in South Africa (listed alphabetically):
Combined Motor Holdings (CMH) says the its new-vehicle sales have fallen by 8% in the last six months. It believes this is due to, in part, “Tough competition between Chinese entrants in an already saturated market with intense trading margin pressure,” said CMH.
WHICH BRANDS ARE THE MOST POPULAR?
The rise of Chinese cars in South Africa sees Chery and Haval at the top of the most-wanted list. Haval sells, on average, 1 500 cars per month in South Africa. While, since re-entering South Africa in 2022, Chery’s sales have climbed to more than 1 500 a month. The success of these two in particular has spurned other Chinese brands to try emulate their success in South Africa.
However, while the growth in sales of Chinese cars in South Africa has been impressive, it may be about to hit a ceiling. CMH says Haval’s market share has declined by 11% over the last year. And the newer Chinese brands might not be able to survive sudden market swings, resorting to lowering prices (and profits) to clear inventory.
WOULD YOU CONSIDER CHINESE FOR YOUR NEXT CAR?
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