South Africa courts China’s carmakers to set up manufacturing bases

Pretoria is urging Chinese carmakers to set up manufacturing bases in South Africa, encouraging them to invest in what is now a key export market for Beijing’s auto industry.

Deputy Trade Minister Zuko Godlimpi told lawmakers that the South African government was asking Chinese companies “to invest in hybrid vehicles and electric vehicles because that is the market that they are servicing globally.” The talks coincide with plans in Africa’s most industrialized economy to raise import taxes, so that “cheap imports do not price out South African-manufactured cars,” he said.

The local market has seen the increased presence of Chinese internal-combustion engine cars such as Chery and Haval, which are cheaper than the American and Japanese brands that still dominate the roads. Shenzhen-based electric vehicle maker BYD plans to increase its South Africa dealerships from 13 to 20 by the end of this year, and to at least 30 next year.