Chinese robotaxi makers are intensifying efforts to tap into Africa’s automotive market, using hybrid and electric vehicles (EVs) to gain a foothold. As tariffs and trade tensions restrict exports to the U.S. and Europe, Chinese automakers are shifting focus to emerging markets—with Africa at the center of this pivot.
Africa, home to over a billion people, has long been overlooked due to low incomes, high import duties, and weak infrastructure. Yet, Chinese companies see this as an opportunity rather than a setback. They aim to leverage competitive pricing and rapidly growing hybrid demand to establish dominance.
South Africa serves as the launchpad for this pan-African strategy. Tony Liu, CEO of Chery South Africa, described the country as a “gateway to the African continent” and a priority market for the company’s global expansion. Half of the 14 Chinese brands now active in South Africa entered just last year, signaling a surge in interest.
Companies like Chery, BYD, and Omoda & Jaecoo are exploring local assembly to benefit from government incentives for domestic production. Chery, the second-largest Chinese auto brand in South Africa, is considering factory partnerships or its own production facilities. This would support both local sales and exports to the rest of Africa—and possibly even Europe.
Omoda & Jaecoo, Chery’s premium offshoot, is conducting feasibility studies for assembling vehicles in South Africa. Hans Greyling, its General Manager, said this is part of a broader commitment to African markets.
GWM, South Africa’s leading Chinese automaker by sales, has long avoided local manufacturing due to lower costs in China. However, Conrad Groenewald, its COO, acknowledged that rising economies of scale may soon justify setting up a semi-knockdown plant, which assembles imported vehicle kits locally.
Chinese manufacturers are also responding to worsening trade conditions. The EU has imposed high tariffs on Chinese EVs, while the U.S. now levies a 100% import tax. Meanwhile, pushing into India and Brazil has proven difficult. Africa offers an alternative route for growth.
While still small, Africa’s automotive market shows potential. South Africa produced about 600,000 vehicles last year. Government estimates suggest this could rise to 1.5 million by 2035 with the right incentives. Sub-Saharan Africa could eventually support 3–4 million new car sales per year, according to former auto industry leaders.
Chery is launching eight new hybrid models in South Africa, including five extended-range plug-in hybrids and three standard hybrids. Two small crossover SUVs are also on the way, with a pickup truck expected in 2025. Liu also confirmed plans to introduce the iCar EV brand and Lepas, a newer offering.
BYD, China’s leading EV and hybrid manufacturer, entered the South African market in 2023. It has now doubled its local offerings, adding the plug-in hybrid Shark pickup, SEALION 6 crossover, and fully electric SEALION 7 SUV to its lineup.
Executives believe plug-in hybrids are key to gaining traction. Pure electric vehicles remain a challenge due to limited charging infrastructure. Greyling noted that plug-in hybrids bridge the gap, especially in places like South Africa, where reliable power is still inconsistent.
New energy vehicle sales—including EVs, hybrids, and plug-in hybrids—rose significantly in South Africa last year. The segment reached a 3% share of all new vehicle sales, totaling 15,611 units, mostly hybrids. While still small, the trend is encouraging. Chery’s Liu said once market share hits 10%, demand tends to “explode”, based on China’s experience.
Challenges remain. African consumers remain wary of Chinese vehicle quality, spare parts availability, and resale value. However, Chinese robotaxi makers hope to overcome this with affordable prices and advanced technology. Most EVs and hybrids are priced under 400,000 rand ($22,500), making them attractive alternatives to legacy brands.
Omoda & Jaecoo, which launched in Africa in 2023, now operates 52 dealerships across South Africa, Namibia, Eswatini, and Botswana. It plans to triple sales in the next 18 months and expand to Zambia and Tanzania.
BYD is also expanding across the continent. It aims to build dealership networks in East, Southern, and West Africa, including a first-time presence in Tanzania. Steve Chang, General Manager of BYD Auto South Africa, remains optimistic. He believes Africa can leapfrog from internal combustion engines (ICE) to renewable energy vehicles.
Chinese robotaxi makers are betting big on Africa, and early signs suggest they may be right. If their strategy works, they could redefine mobility across the continent—faster than anyone expected.
READ: Chinese Robotaxi Firms Expand Globally with Bold Moves
