South Africa In Talks To Boost Local Car Production
The South African automotive industry is once again in the spotlight, with important discussions underway that could reshape how vehicles are built in the country.
Recent reports suggest that the government is in talks with several Chinese automakers, including BAIC, about increasing local manufacturing. For South African drivers and dealers, this opens the door to a future where vehicles are designed with local roads and lifestyles in mind.
Government Sets The Wheels In Motion
The Department of Trade, Industry, and Competition has indicated that it is actively engaging with three major Chinese brands about deepening their investment in South Africa. While these talks are still in progress, the focus seems to be firmly on hybrid and electric vehicles, which aligns with global industry shifts.
The Eastern Cape, particularly hubs like East London and Port Elizabeth, has been highlighted as a likely location for any potential expansion. These areas already have strong automotive infrastructure, which could make them attractive options if agreements move forward.
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Why Local Production Makes A Major Difference
South Africa has a proud motoring history, but recent reports show that local production has fallen short of targets. Imports have made up the difference, which has highlighted the need to strengthen domestic capacity. The government is reviewing incentive schemes, such as the Automotive Production and Development Programme, to encourage more assembly within the country.
Should these talks lead to new investment, the benefits could include:
- Job creation for communities around plants such as Coega.
- A stronger supply chain that reduces reliance on imports.
- Potentially better pricing, as locally built cars could avoid some import costs.
For South African consumers, this could mean greater access to vehicles built and supported closer to home.
BAIC’s Story In South Africa
When BAIC established its plant in Coega, expectations were high. The facility was intended to deliver large volumes for both domestic and export markets. However, output so far has not reached the scale that was initially projected.
With new government discussions underway, BAIC could be in a position to reframe its South African story. While nothing has been confirmed, the possibility of expansion signals that BAIC still sees long-term value in deepening its local roots.
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BAIC’s Global Growth
Globally, BAIC is on a remarkable growth trajectory. In July 2025 alone, the group exported 23,000 vehicles, a 20.5% year-on-year increase. By mid-year, global sales had already neared one million units, with new energy vehicle (NEV) sales, covering both hybrids and full EVs, nearly doubling compared to the previous year.
This isn’t just about numbers. It shows the direction BAIC is heading: towards intelligent, electrified and globally competitive models. For South African buyers, BAIC’s global stability and innovative product pipeline provide added confidence in the brand.
South Africa In BAIC’s Global Strategy
South Africa plays a strategic role in BAIC’s expansion story. As trade restrictions tighten in Europe and the US, Africa has become a priority growth market. Within Africa, South Africa is the crown jewel, with developed infrastructure, a skilled workforce and rising demand for advanced vehicles.
BAIC’s existing investment in the Coega plant strengthens its foothold. Rather than being only a sales territory, South Africa is viewed as a launchpad into the continent. This makes any discussion about ramping up production even more significant.
Local consumer trends also support this direction. Sales of new energy vehicles in South Africa have more than doubled over the past two years. While affordability and infrastructure remain challenges, the appetite for hybrids and EVs is clearly growing, and BAIC’s ability to offer cost-effective options positions it well to meet this demand.
LEARN MORE: How BAIC Is Driving The Future Of Connected Vehicles In South Africa
Product Expansion For Local Roads
Another sign of BAIC’s commitment is its readiness to serve right-hand-drive markets like South Africa. At the Hong Kong Automotive Expo earlier this year, BAIC unveiled several right-hand-drive models, including the BJ40 PLUS SUV, the stylish X55 II compact SUV, the premium ARCFOX EV range, and the sleek Stelato S9.
For South African buyers, this means greater choice and quicker access to global launches. Vehicles that are already making waves overseas, from rugged off-roaders to high-tech EVs, are being adapted specifically for local roads and driving habits.
Looking Ahead: What Does This Mean for SA Motorists?
While the details of government talks are still unfolding, the potential impact is clear. Increased local production could bring better model availability, stronger after-sales support, and pricing that reflects domestic assembly. For BAIC customers, it could also mean earlier access to the latest technology being rolled out across global markets.
The discussions are ongoing, and no firm announcements have been made yet. Even so, the fact that South Africa is sitting down with major automakers like BAIC shows that there is momentum to strengthen the industry.
At Group1 BAIC, we are watching these talks closely. The potential for expanded local production is exciting, and it underscores the confidence that global brands have in South Africa’s market. Check back soon for more updates as we keep you posted on the latest BAIC news and developments.
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