South Africa’s car industry is facing growing pressure as more vehicles from China enter the local market, widening the country’s trade gap with China and changing how the auto market works.
Industry and trade data show that Chinese carmakers are quickly gaining a larger share of new car sales, especially in cheaper and mid-priced segments, as seen on Business Insider Africa.
Recent trade figures show a sharp rise in vehicle imports from China over the past year. Chinese brands are expanding fast by offering competitively priced petrol, hybrid and electric cars.
This growth is adding strain to South Africa’s trade balance, as imports from China continue to be much higher than exports.
Economists say cheaper Chinese cars help consumers by lowering costs and helping control inflation. However, they warn that the long-term impact on local car manufacturing and trade could be challenging.
The automotive sector is one of South Africa’s biggest employers and export earners, and continued growth in imports could hurt local production if exports do not increase.
Don’t Miss This:
Chinese Armored Vehicles Expand Presence In Africa As Gabon Showcases VN-1 Infantry Fighting Vehicle
Speaking on The Money Show with Stephen Grootes, Paulina Mamogobo, chief economist at the National Association of Automobile Manufacturers of South Africa (NAAMSA), said competing with Chinese carmakers will be very difficult.
“Even with our production and what we are able to produce locally, competing with the Chinese influx, and this is what we call the Chinese aggressive growth, is going to be quite significantly difficult,” she said.
She warned that China’s fast-growing auto industry will keep affecting African markets. “Just in 2026, we’re expecting an auto growth in China of over 25%, that’s about 7 million cars, just in 2026. So where will that be going? In markets such as our market, which is the African market,” she said.
Mamogobo also pointed to the rapid increase in Chinese brands operating in South Africa. “In 2024, we had 8 Chinese brands reporting to NAAMSA.
In 2025, that grew by an additional 6 brands as well. In 2026, we’re actually expecting that we will have even those brands expanding their derivatives more than six times what was reported in 2025.”
The trend shows the growing influence of Chinese carmakers in Africa and raises concerns about how South Africa’s local car industry can stay competitive in the face of rising global competition.
Don’t Miss This:
Africa’s Trade Leaders: The Top 10 Exporting Nations Driving The Continent’s Internal Market
Image Credit: VOA
