What's behind the rise of Chinese vehicles in South Africa?

TimesLIVE

a day ago

Amid rising living costs, South Africans are increasingly exploring more affordable vehicle options, with established and emerging carmakers responding to the demand differently.
Several Chinese marques have entered the fray in recent years, drawing attention with extensive standard equipment lists, stylish designs and competitive pricing.
However, questions around after sales support, parts availability and warranty coverage remain, particularly for those buying into relatively new brands.
The typical vehicle warranty in South Africa is around five years/100,000km, though this can vary significantly depending on the vehicle segment and manufacturer. Some best-sellers, however, offer shorter coverage. Despite its high price point, the Volkswagen Polo comes with a three-year/120,000km warranty.
Chinese brands have responded by offering more extensive coverage, with warranties reaching up to seven years or 200,000km. Brands such as Omoda & Jaecoo (O&J), Chery and Haval have rapidly expanded their presence, each seeking to capture a market share with competitive pricing and longer warranties.
The entry-level Omoda C5 Style comes with a five-year/150,000km warranty, while the range-topping C9 offers a seven-year/200,000km warranty coverage. Similarly, BAIC's X55 lineup receives a five-year/150,000km warranty, though the model's service plan is optional.
The approach has found a market among buyers, many of whom have long valued the extensive dealer networks of more established brands. Ford, Volkswagen and Toyota have long thrived in South Africa partly because of their wide-reaching dealer and service networks. Driving a Toyota through the more remote parts of the country rarely sparks concerns about breakdowns, given the likelihood of finding a nearby dealership.
Chinese brands have made strides in building local networks, but some consumers consider the convenience of well-established service networks when choosing a vehicle. In April alone, 4,880 Chinese passenger cars were sold in South Africa, according to Naamsa. To put this into perspective, the figure marks a notable increase compared to six months before, when Chinese vehicle sales totalled 4,372 units.
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When O&J entered the market in 2023, they had around 40 dealerships in South Africa. That number has grown to 50 service centres, with plans to grow to 64 in the coming years. While not as expansive as brands such as Toyota and Volkswagen, several Chinese brands have surpassed European luxury brands in terms of dealership footprint, specially as some are reducing their network due to challenges.
Shannon Gahagan, national marketing manager for O&J South Africa, noted the growing service network.
'Our service network spans urban and rural areas, from Lydenburg and Ermelo to East London and Cape Town, and neighbouring countries such as Eswatini, Namibia and Botswana. While routine servicing is typically completed within the same day, mobile service options remain limited, depending on dealer policies and vehicle location,' she said.
Parts availability is a critical factor for newer brands. O&J go through a daily analysis process that helps maintain a 98.4% fill rate for common spare parts, with a long-term goal of surpassing 99%.
If a required part isn't in stock, air freight is used to minimise delays, delivering components within 15 to 20 days. Standard top-up shipments by sea can take up to 90 days to arrive. Ultimately the brand aims to hold stock locally for all components used in vehicle assembly, regardless of how frequently they're needed.
Image: Supplied
Early reliability data suggests some Chinese brands have kept warranty claims relatively low, which could build confidence over time. Gahagan noted O&J has a burn rate of around R140 per vehicle annually, lower than some established competitors, such as Hyundai, which reported approximately R380 per vehicle in September last year.
In practical terms, this means fewer defect claims and fewer workshop visits. The complaint ratio for the marque's vehicles has yet to reach 0.5% of their car park, standing at only 0.3% or around 10,000 vehicles.
The rise of Chinese car brands in South Africa reflects a growing shift toward more affordable vehicles without sacrificing key features. While after sales support and parts availability remain concerns, many brands are actively addressing the gaps with growing dealer networks and strong warranties.
Chinese carmakers have made progress in establishing support infrastructure and showcasing reliability, closing the gap with more established brands from Europe, Japan, or Korea. However, as the market continues to evolve, long-term success will depend on maintaining the momentum while addressing the unique needs of local drivers.