Chinese automaker Changan to launch in South Africa

April 04, 2025

From the newsletter

Chongqing Changan Automobile, one of China’s top motor vehicle manufacturers, will begin selling vehicles in South Africa in the fourth quarter of 2025. Saudi Arabian company Jameel Motors will be Changan’s distributor in Africa’s largest automotive market. Jameel will distribute Changan’s SUVs, pick-ups and sedans, as well as its Deepal EV range. 

  • Changan's entry into South Africa strengthens China's growing presence in Africa's automotive market, joining other Chinese brands like BYD, Chery, SAIC, Geely and Great Wall Motors. This reflects China's strategic push to dominate emerging markets with low-cost vehicles.  

  • Africa's appeal is growing as a market for both traditional and electric vehicles. The continent is attracting not only Chinese automakers but also brands from other countries globally. For instance, Russia's largest automaker AvtoVAZ, known for its Lada brand, is targeting Nigeria with plans to establish a local assembly plant.

More details

  • Changan sells a number of popular ICE vehicles including Uni-T crossover and Uni-V sedan, and Nevo and C S75 SUVs. The company also has joint ventures with Ford, Mazda and JMC offering a range of vehicles. In the EV segment, its Deepal unit makes G318, S09, S07, S05 and L07 EVs, mainly SUVs.  

  • On the other hand, Jameel, part of Abdul Latif Jameel Group, plans to invest $26.2 million and open 50 showrooms in South Africa to facilitate sales. The company represents some of the world’s most recognised commercial and passenger vehicle brands and has operations in more than 10 countries across the Middle East, Africa, Europe, Asia and most recently Australia.

  • South Africa is the biggest vehicle market in Africa and had over 500,000 new vehicle sales last year, with domestic new vehicle sales rising more than 10% in January year on year, according to industry association the Automotive Business Council (Naamsa). 

  • This mature market has made South Africa a magnet for Chinese vehicle manufacturers who are looking to grow their sales of ICEs, EVs and hybrids especially amid increased tariffs in the US and Europe. For instance, Chinese carmaker Geely has announced plans to return to the country in 2025 following its exit nearly a decade ago. Nearly a dozen models will debut in South Africa this year, including the BYD Dolphin Mini, BYD Shark, BYD Sealion 6, Volvo EX90, Ford Ranger PHEV,  among others. 

  • South Africa is however not alone in attracting vehicle manufacturers and new models. Last year, Toyota Tsusho Corporation of Japan inked a framework agreement with the Kenyan government for the establishment of a local vehicle manufacturing plant. Further, Nissan is introducing its e-Power hybrid technology in Africa, starting with Tunisia. The company is also expanding its South African-built Navara pickup trucks to new markets, including Algeria, Libya, and Egypt.   

  • Africa's vehicle fleet is expected to double by 2050, with motorization rates increasing from 73 vehicles per 1,000 people to 150 vehicles per 1,000 people. While EVs have been at the backseat on the continent, they are expected to contribute a larger share of future demand. The African EV market is expected to reach a value of $28.30 billion by 2030, with a compound annual growth rate (CAGR) of 10.2% during this period. 

Our take

  • The US’s recent tariffs on foreign-made vehicles and auto parts will have a major hit on global automakers who rely on the US market. This could force them to look for alternative markets to salvage their sales. Africa stands to benefit from this by serving as an alternative market.

  • Changan's entry into South Africa, alongside established Chinese brands like BYD and Geely, signals intensified competition in the affordable vehicle segment. This may drive innovation and force manufacturers to offer better features and competitive pricing, benefiting African consumers.

  • While a growing number of global automakers are introducing their vehicles to Africa, not many are setting up local assembly or manufacturing factories. African countries have to introduce reforms to lower the cost of doing business and stimulate demand for vehicles to attract such industries.