Chery, the fast-rising automotive manufacturer, is set to significantly expand its influence within South Africa's market by introducing six new vehicles under its Omoda and Jaecoo sub-brands by the end of 2025. Since their introduction, these brands have swiftly gained traction, with both Omoda and Jaecoo vehicles climbing to 15th place among national sales rankings, outpacing many established competitors. Riding this momentum, Chery aims to bolster its lineup and capture even more market share.
The centerpiece of Chery's plans is the launch of two new models from Omoda and four from Jaecoo. Among them is the much-anticipated Omoda C7, which slots neatly between the compact C5 and the flagship C9 within the brand's SUV range. With bold aesthetics featuring a frameless X-shaped grille and flowing headlights, the C7 is optimally built for mid-sized SUV enthusiasts. Inside, it promises luxury with leather seating, expansive entertainment systems, and cutting-edge audio technology.
Chery's ambitions don't stop at traditional fuel options; they are soon releasing the Omoda C9 plug-in hybrid (PHEV), maximizing efficiency without sacrificing performance. While the petrol version is already contributing to Chery's South African success, the upcoming PHEV's combination of electric motors and eco-friendly engineering is expected to broaden its appeal.
Jaecoo, poised for its own explosive growth, looks ready to attract budget-conscious consumers with its forthcoming entry-level J5. Designed with rugged features and urban sophistication, this model offers the kind of amenities consumers expect from higher-end models. Another highlight is the J6, which will enter the electric vehicle (EV) market, boasting two powertrain options and luxury elements like massaging seats and expansive touchscreens.
Chery’s aggressive expansion is backed by broader governmental support, as South Africa is positioning itself for Chinese investments aimed at the R500-billion motoring industry. President Cyril Ramaphosa recently signed tax breaks for the production of new-energy vehicles, which include electric and hydrogen-powered options. This is timely as more Chinese automakers, including Chery, seek to stake their claim within Africa's largest car market.
According to Mikel Mabasa, CEO of the Automotive Business Council, "With good government policies, we will attract new investment, we will increase and retain investment.” The new 150% tax deduction is set to incentivize automakers to ramp up electric vehicle production as the industry challenges include adaptations to the local market and consumer preferences.
Despite the optimistic outlook, the sector's challenges remain persistent. Large local manufacturers including Toyota and Volkswagen face restrictions from legislation aimed at phasing out internal combustion engines, which could hinder production of future vehicle models. While companies like Ford and BMW are contemplating hybrid manufacturing, none have yet committed to producing battery-electric vehicles within South Africa.
Mike Whitfield of Stellantis voiced concerns, noting, "The tax amendment cannot and will not on its own be sufficient.” His comment highlights the need for comprehensive infrastructure improvements, including investment boosts for charging-station networks, and support measures to financially sustain local manufacturing.
The backdrop of the automotive expansion is South Africa’s rich mineral resources. Being the world’s largest producer of manganese and having substantial deposits of platinum and rare earths solidifies the nation’s potential as the go-to region for EV battery components, which offers strategic advantages to investors and automakers alike.
To keep pace with global developments, the South African automotive industry must increase production efficiency and adapt business models. Mabasa emphasizes this point, warning: "If government is not supportive, the industry will die," indicating the dire need for aligned policies and practices between the government and manufacturers.
The hope is for South Africa to remain attractive for car maker investments on the continent, leveraging its established infrastructure and relatively affluent consumer base. Mikel Mabasa's earlier sentiments ring true; the industry needs more support to flourish amid increasing competition from all sides, particularly as Chery's launch plans are likely to spark significant changes within the market.