Why South Africa is pushing Chinese EV makers to set up on home soil
South Africa is urging Chinese automakers to shift from simply exporting vehicles into the local market to building manufacturing bases within the country.
Deputy Trade Minister Zuko Godlimpi told lawmakers this week that the country is encouraging Chinese companies to invest directly in hybrid and electric vehicle production, to tap into global demand, Semafor reports.
“We are asking them to invest in hybrid vehicles and electric vehicles because that is the market that they are servicing globally,” Godlimpi said.
Chinese brands such as Chery and Haval have grown their footprint in South Africa by offering cheaper internal-combustion engine cars than their American and Japanese rivals.
Shenzhen-based BYD, one of China’s largest electric vehicle makers, is also expanding rapidly, planning to raise its number of dealerships in South Africa from 13 to at least 30 by next year.
The government plans to raise import taxes so that cheap foreign cars do not undercut local manufacturing, creating pressure on Chinese companies to consider assembling vehicles in South Africa.
By urging Chinese firms to build factories locally, South Africa hopes to protect its domestic auto sector, which remains one of the continent’s most industrialised.
This story is written and edited by the Global South World team, you can contact us here.
