Chinese automakers gain ground in South Africa as competitive pricing spurs demand

By Nqobile Dludla

JOHANNESBURG, May 15 (Reuters) - Chinese automakers expanded their stock of the South African rider car marketplace to 16.8% successful 2025 from 11.2% a twelvemonth earlier, manufacture ‌data showed connected Friday, arsenic competitively priced, technology-rich athletics inferior vehicles and agelong warranties ‌reshaped competition.

The home caller conveyance marketplace has entered a play of recalibration marked by affordability pressures, shifting user expectations and ​intensifying planetary competition, car manufacture assemblage naamsa said successful its yearly study connected Friday.

The astir melodramatic displacement successful 2025 has been the "meteoric rise" of imported Chinese brands successful South Africa's airy conveyance market, offering modern technology, competitory pricing and agelong warranties that person helped them determination into the mainstream, it added.

"This ‌is not regarded arsenic a ⁠short-term surge, but a structural reset, arsenic for decades the marketplace was shaped by badge and prestige, but it is present being redefined by price-driven user ⁠choices and tighter household budgets, with small marque affinity," naamsa said.

There were 15 Chinese brands operating successful South Africa's caller conveyance marketplace successful 2025 - including starring manufacturers similar BYD, Chery, and GWM - up from 8 ​in ​2024, with much expected to participate successful 2026.

Despite unit ​from caller entrants, marque loyalty remained resilient ‌in parts of the market. Toyota retained its presumption arsenic wide marketplace leader, with a marketplace stock of 24.8%, followed by Suzuki Auto and Volkswagen.

EXPORTS TO THE U.S. FALL

Automotive exports remained a pillar of the industry, but exports to the United States fell by 26% to 20.4 cardinal rand ($1.23 billion) successful 2025, contributing to a broader 26.1% driblet successful shipments to the U.S., Mexico and ‌Canada (USMCA) region, the study showed.

The diminution reflected steep U.S. ​import tariffs connected vehicles and components imposed past year, arsenic ​well arsenic the determination by 1 large ​producer to nary longer export its caller exemplary launched astatine the extremity ‌of 2024 to the U.S., naamsa said.

Export volumes ​to the USMCA portion ​fell to 10,042 units successful 2025 from 26,063 units successful 2024.

Mercedes-Benz is the lone home car shaper heavy reliant connected the U.S., and the outlook for the marketplace remains uncertain, ​with further declines expected successful ‌2026 arsenic tariffs proceed to weigh.

India remained the apical root by volume, accounting for ​56.2% of full airy vehicles imported, portion China accrued its stock to 23.3%.

($1 = 16.6012 ​rand)

(Reporting by Nqobile Dludla; Editing by Joe Bavier)