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Vehicles made by Chery Automobile Co and Great Wall Motor Co are increasingly competing with those from the local manufacturing units of carmakers such as Toyota Motor Corp and Volkswagen AG. In December, Chinese ambassador to South Africa Wu Peng said his government was encouraging automakers to invest in the country.
South Africa is poised for Chinese investment in its US$27 billion automotive industry after the president signed a tax break for the production of so-called new-energy vehicles into law.
CEO Mikel Mabasa said, declining to identify them, that three Chinese automakers have already signed non-disclosure agreements with the Automotive Business Council.
Vehicles made by Chery Automobile Co and Great Wall Motor Co are increasingly competing with those from the local manufacturing units of carmakers such as Toyota Motor Corp and Volkswagen AG. In December, Chinese ambassador to South Africa Wu Peng said his government was encouraging automakers to invest in the country.
While the industry has welcomed the step, it comes after years of warnings that car making, the jewel in South Africa’s manufacturing sector, is at risk because of legislation in its biggest export market — the European Union — aimed at phasing out the use of internal combustion engines.
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The tax amendment, first proposed in the national budget in February last year, was only enacted by President Cyril Ramaphosa on 24 December.
While some companies including Ford Motor Co and BMW AG make or plan to manufacture hybrids in the country, none have announced planned investment in battery-electric vehicles.
