South Africa is engaging in high-level discussions with Chinese automakers to establish local manufacturing of vehicles, especially hybrids and electric vehicles (EVs) in response to declining domestic auto output and a surge in vehicle imports from China.
Deputy Minister of Trade, Industry & Competition Zuko Godlimpi informed Parliament that at least one Chinese automaker has expressed strong interest in setting up production facilities in either East London or Port Elizabeth. These locations are being considered as sites for new plants that could manufacture EVs and hybrids for both local consumption and potentially export
Currently, about 15 Chinese automotive brands already operate in South Africa including names like BYD, Chery, and Great Wall Motor, and more are reportedly planning to enter. To protect and strengthen the local auto sector, the government is reviewing its tariff and import duty regime in order to shield local production from being undercut by cheaper imported vehicles.
