Could South Africa become a hub for Chinese car production? Naamsa CEO Mikel Mabasa shares insights on potential CKD facilities.
At least three Chinese manufacturers are considering production in South Africa . File picture: Costfoto / NurPhoto via AFP.At least three Chinese car manufacturers are considering setting up CKD vehicle production facilities in South Africa , according to Mikel Mabasa, CEO of Naamsa | the Automotive Business Council .
“You’ll be pleased to hear in regard to that the Chinese are definitely interested in setting up CKD operations in South Africa.“We currently have three that are firmly looking at CKD operations in South Africa, and we are working with them to see whether that would be practical for them.” In late 2023, Chery South Africa’s executive deputy general manager Tony Liu said that a local assembly operation was certainly under consideration, however the company would need to look at overall sales volumes and balance that against manufacturing policy, regulations and overall cost, as a first step.
Mabasa said some Chinese manufacturers were keen to take advantage of trade scenarios such as these, particularly given the EU’s punitive tariffs on Chinese-built cars. However, he warned that the local industry would have to compete with other African countries such as Morocco, which recently overtook South Africa in terms of vehicle production, and which has already attracted Chinese automotive investment.
Chinese Ceo Mike Mabasa Andrew Kirby Vehicles Ckd Automotive Business Council Naamsa Gwm Motor Industry Toyota Somi Tony Liu Chery Automobile Southern Africa Toyota Sa Baic Koega Europe China Eu South African Vehicle Exports Chinese Automotive Investment Local Production Incentives
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