28 Août 2026

By Njenga Hakeenah

LIBREVILLE, August 28 (Infosplusgabon) - Chinese automakers Chery and BYD are pursuing two very different strategies in South Africa, the continent’s largest and most advanced automotive manufacturing hub.

People stand near a Chery Holding Group vehicle during the launch of the Chery manufacturing facility at the former Nissan factory in Rosslyn, Pretoria, South Africa, July 3, 2026. REUTERS/Ihsaan Haffeje, South Africa, July 3, 2026. REUTERS/Ihsaan Haffejee

Chery, China’s largest vehicle exporter, is investing millions of dollars to modernize the Rosslyn assembly plant near Pretoria before local production begins in mid-2027. The company acquired the former Nissan facility earlier this year after announcing the deal in January.

The company says South Africa will become its African hub for manufacturing, exports, research and development, and regional operations.

BYD, by contrast, is relying on imported vehicles while rapidly expanding its retail footprint through dealerships, including locations in shopping malls and smaller cities.

The company’s longer-term strategy extends beyond vehicle sales. BYD has announced plans to expand South Africa’s EV charging network through partnerships with Eskom and other charging providers, addressing one of the country’s biggest barriers to EV adoption: range anxiety.

The initiative will deploy ultra-fast chargers capable of adding up to 400 kilometers of driving range in about five minutes. Where possible, the charging network will combine grid electricity with solar power to reduce pressure on South Africa’s unreliable electricity system.

Given South Africa’s still nascent EV market, BYD’s asset-light approach offers a faster path to building market share.

Chery, however, is making a longer-term bet on local manufacturing.

Producing vehicles in South Africa aligns the company with Pretoria’s goal of increasing annual vehicle production to 1.4 million units by 2035. Chery has pledged to retain all 692 employees at the Rosslyn plant, while Vice President Charlie Zhang said the investment will ultimately support nearly 3,000 direct and indirect jobs across manufacturing, supply chains, and related services.

Local production also positions Chery to benefit from South Africa’s industrial incentives, including a 150% tax deduction for qualifying investments in electric- and hydrogen-vehicle manufacturing.

At the same time, the Department of Trade, Industry and Competition is proposing changes to the Automotive Production and Development Program (APDP) that would expand incentives for EV batteries, components, and vehicle assembly.

BYD’s strategy may deliver stronger near-term sales, while Chery’s investment is unlikely to generate comparable returns until local production ramps up. But that balance could shift if South Africa adopts more protectionist policies to support domestic manufacturing by making fully imported vehicles less competitive.

The contrast extends beyond South Africa. Across Africa, BYD has rapidly expanded its presence as European automakers have lost share in the continent’s emerging EV market. While used European vehicles still dominate overall car sales, BYD is increasingly offering new EVs at prices that compete with used imports in several African markets.

According to the International Energy Agency’s Global EV Outlook 2026, BYD’s share of Africa’s EV market rose from 4% in 2023 to 35% by 2025, while European automakers’ share fell from roughly 40%.

For now, BYD appears well positioned to remain the continent’s EV sales leader. Over the longer term, however, manufacturers that establish local production- such as Chery- could gain a structural advantage as African governments place greater emphasis on domestic industrialization.

Founded in 1994, BYD is a high-tech company devoted to leveraging technological innovations for a better life.

FIN/INFOSPLUSGABON/OFG/GABON2026

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