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Discussion Starter · #1 ·
Chinese cars are on their way to South Africa :thumb:


Source: Business Day (Johannesburg)

"CHINESE-made passenger vehicles are set to hit SA's roads for the first time early next year , with Bidvest subsidiary McCarthy Motor Holdings confirming yesterday it that was tying up a deal with suppliers in China.

China is expected to become a major vehicle exporter in the next few years and could pose a threat to the South African automotive industry, which contributes about 7,4% to gross domestic product.

McCarthy would import bakkies, sports utility vehicles and minibuses manufactured by various Chinese suppliers through a third party, probably from the first quarter of next year, chairman Brand Pretorius said.

McCarthy would fund an undisclosed part of the cost of converting left-hand-drive facilities in China to enable right-hand-drive production. The firm will have the rights to distribute the vehicles in SA and other soon-to-be-announced right-hand-drive markets.

Pretorius said that while they would not revolutionalise the automotive market in SA, McCarthy's imports would be "price-competitive". They would compete with the likes of Tata -- the low-priced Indian vehicles that ventured into SA about 18 months ago, he said.

Pretorius said the Chinese-made vehicles would be subjected to costs such as a right-hand-drive premium, 32% import duty and high shipping costs of as much as R12000 a vehicle.

It would not affect relations with brands such as Toyota, Volkswagen and BMW, among others, which it had represented over the years.

Pretorius said the first prototypes would arrive in South Africa next month for testing according to domestic standards.

He said it was inevitable that Chinese imports would come to SA, against the backdrop of growing vehicle production there. Chinese-made trucks were already in the country and several other groups were securing supply agreements.

Resistance to Chinese vehicle imports could be expected, given the importance of the domestic automotive manufacturing sector, said local Asia expert, Dr Martyn Davies of Emerging Market Focus. Political consequences could also emerge as union opposition to the lesser-priced imports grew, he said.

Davies said the Chinese government was encouraging its domestic automotive players to export through the provision of export credits and financial support in order to counter overcapacity.

Due to China's lower engineering and manufacturing input costs, it was able to make vehicles 40% more cheaply than both Japanese and Korean car makers.

"Chery, a company founded in Anhui province, sells its QQ model at just $3500 -- one of the world's cheapest cars," he said."

627 Posts
Admin said:
great news, If they can make it to south africa and actually do good, they will have no problem becoming a big competition all over africa, since south africa is the biggest and hardest car market in africa

China already exports many cars to African countries like Egypt, Algeria, Sudan, Tunisia. And even airplanes to Zimbabwe. But most people in African countries are too poor to buy cars so there isn't much of a car market there.
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