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Why global automakers are moving production to Africa
Source: BAIC
From the newsletter
Chinese automaker BAIC has announced that it will start production of the new B30 off-road SUV fuel and hybrid models at its Eastern Cape factory in South Africa starting in 2026 using a completely knocked-down production process. BAIC also makes the fully electric EU5 and EU5 Plus cars but has not put a timeline on when it will start assembling them locally.
BAIC joins foreign automakers like Chery, EKA, GAC, MAN, Volvo among others that are investing in local production of new energy vehicles to meet rising demand. The aim is to cut costs and tailor products to the African market.
Like South Africa did more than two decades ago, more African countries are also beginning to ban or phase out used car imports, forcing demand for locally assembled or new affordable EVs. This is attracting new capital in local EV assembly.
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