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BYD launches three more vehicle models in South Africa
From the newsletter
Chinese automaker BYD has introduced three vehicle models to South Africa, two of which are plug-in hybrids (PHEV) while the third is fully electric. It has introduced the Shark 6, a PHEV pick-up, fully electric Sealion 6 and PHEV Sealion 7, both SUVs. They join Atto 3, which BYD launched there in 2023, and Dolphin hatchback and Seal sedan, both launched in 2024.
Despite being the world’s second-largest electric car manufacturer, BYD is barely making any sales in South Africa, where it launched in 2023. The country’s EV market is instead dominated by Swedish automaker Volvo and German juggernaut BMW. But BYD seeks to upend the status quo, with its EVs, comparatively cheaper, looking set to pinch a slice of the market in 2025.
The launch of the three new models means BYD has now doubled its models in the country to six, more than it has in any African country. South Africa is Africa’s largest automotive market, with more than 500,000 vehicles sold annually. It is thus a key entry point for leading automakers into the African automotive market.
More details
The Shark 6 Premium PHEV, which can drive 85 km on its EV battery, is priced at $49,200, the Sealion 6 Premium AWD will cost $40,400 , while the BYD Sealion 7 Premium is available for $56,300. The former, a PHEV, has an electric range of 70 km while the latter has a range of 482 km.
South Africa is the latest stop in BYD’s rapid expansion drive that has seen it launch or introduce new models in more than a dozen markets on the continent. The automaker last month launched in Nigeria, starting with a lineup of BYD Dolphin and BYD Atto 3, some of its cheapest cars. Other countries where the company has launched include Egypt, Kenya, Madagascar, Senegal, Morocco, Zambia, Zimbabwe, Tunisia, Ethiopia and Rwanda.
BYD’s South Africa expansion continues the avalanche of new EV models that automakers are introducing in the country, which is serving as their first port of call in Africa. But the number of EV manufacturers launching on the continent is rising, which means no single company can afford to rest on its laurels.
For instance, Jiangling Motors Corporation (JMC), a Chinese motor vehicle manufacturer, recently entered the Kenyan market. JMC has a dedicated EV subsidiary called JMEV and has sold more than 100,000 EVs globally, namely the EV2, EV3 and Elight models. Zeekr, a luxury EV firm owned by China’s Geely, launched in Egypt in February, while Tata.ev, a subsidiary of India’s Tata Motors, last month entered the African market through the launch of three EV models in Mauritius.
The increased attention that Africa is receiving from leading automakers comes on the back of increased volatility in the global car market due to tariffs and counter-tariffs between the US and its key trade partners, particularly China and the European Union. With the US and the EU slapping tariffs on foreign vehicles, especially those made in China, Chinese firms are pivoting to Africa as an alternative albeit small market.
This influx of new vehicles is helping drive down prices, especially for EVs. EV costs have been coming down significantly in recent years. And this trend looks set to continue in the next few years. The price cuts, coupled with improvements in charging infrastructure and public confidence in EVs, is driving up demand on the continent. Experts have predicted this demand trajectory to continue.
Our take
BYD’s focus on introducing more affordable EVs and PHEVs in South Africa could allow it to undercut established players like Volvo and BMW. But the company should couple with competitive pricing, strategic marketing and expanded charging infrastructure, which could secure it a bigger slice of South Africa’s EV market in 2025 and beyond.
US and EU tariffs on Chinese-made vehicles provide a window for Africa to attract China’s cheaper vehicles, especially EVs and PHEVs. The tariffs could see automakers like BYD invest further in Africa as both a consumer market and a potential export hub for neighboring regions, leveraging lower production costs and expanding local operations.
The influx of EV automakers into Africa will likely lead to heightened competition. This could result in further price reductions and product innovations as companies vie for dominance, particularly in major African markets like South Africa, Morocco, Egypt, Kenya and Nigeria.