China’s biggest car manufacturers are turning their attention to South Africa as a new hub for global auto production. Beijing Automotive Group (BAIC) and Chery have unveiled plans to build assembly plants and expand local manufacturing — a move that underscores Africa’s growing role in the global automotive industry, Business Insider Africa reports.
Faced with stiff competition in domestic markets and mounting trade restrictions in Europe and the United States, Chinese automakers are increasingly looking to Africa for growth.
South Africa, with its mature automotive ecosystem, skilled workforce, and rising consumer demand, has become a prime destination for such investments.
BAIC already operates a facility in Gqeberha, Eastern Cape, where it assembles the B40 Plus and Beijing X55 Plus SUVs.
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The company plans to expand operations by beginning local assembly of the B30 off-road SUV as early as January 2026. According to BAIC South Africa’s Chief Financial Officer, Anele Geza, the new B30 will be assembled using a completely knocked-down (CKD) process, which involves importing individual parts for local assembly to boost domestic content — a shift from the semi-knocked-down method currently used.
This expansion aligns with South Africa’s Automotive Masterplan 2035, which seeks to raise vehicle production from 600,000 to 1.4 million units annually while increasing local manufacturing content.
Global automakers such as Toyota and Ford — already operating in the country — have called on new entrants like BAIC and Chery to deepen local production to strengthen the sector’s long-term viability.
Chery, which owns the fast-growing Omoda and Jaecoo brands, has also confirmed it is conducting feasibility studies for a new vehicle assembly plant in South Africa. The proposed facility, the company says, would create local jobs, strengthen supplier networks, and bring Chinese auto suppliers into the South African manufacturing chain to meet local content requirements.
“We’re currently conducting feasibility studies in South Africa, which remains a key focus for both Omoda and Jaecoo,” Chery stated.
“The country plays an important role in our global strategy, and we’re carefully assessing opportunities to expand our presence and meet growing demand.”
The twin projects mark a significant step in China’s broader global expansion strategy, as automakers diversify production bases amid shifting trade dynamics.
Both BAIC and Chery have reaffirmed their long-term commitment to South Africa’s automotive future — one that promises to make the continent a critical player in the next phase of global car manufacturing.
