China's Chery considers building vehicle manufacturing plant in SA

The Money Show's Stephen Grootes interviews George Mienie, CEO of AutoTrader South Africa.

Much is being made of the so-called Chinese car invasion of South Africa, as more buyers opt for cheaper prices accompanied by quality in many cases.

Now Chery is considering building an assembly plant in the country, reportedly confirming that it's in the second phase of a feasibility study to determine the viability of local manufacturing for several production models.

SA car buyers in high gear: Influx of affordable imported models boosts new vehicle sales

Chery Auto SA edged up to take the 7th spot in new car sales for June, according to the latest Naamsa report.

'Given Chery’s rapid growth in the South African market, we have reached a critical sales volume that justifies exploring local production', Chery SA's Neel Hariram told Engineering News Online.

Aside from rising local sales, establishing a manufacturing plant here would also make sense from the point of view of saving on import costs, says, AutoTrader SA's George Mienie.

"The numbers speak for themselves - Chery would be able to sidestep the 18% import tariff on cars if they make them here. Even if they make a few of their variants in South Africa they could offset manufacturing credits against imports so that they pay less import tariffs."

George Mienie, CEO - AutoTrader SA

Mienie notes that on AutoTraders' site alone, they've seen a 42% increase in people looking at Chery models from June 2024 to June this year.

"Affordability is a factor, and I think Chinese vehicles are probably 80% the build quality of a European vehicle, at 60% of the price."

George Mienie, CEO - AutoTrader SA

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