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South Africa’s automotive industry suffers as Chinese cars flood local market

Simon Osuji by Simon Osuji
January 12, 2026
in Business
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South Africa’s automotive industry suffers as Chinese cars flood local market
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Recent trade statistics show that vehicle imports from China have risen dramatically over the past year, as Chinese brands expand their footprint with competitively priced petrol, hybrid, and electric models.

The surge is adding pressure to South Africa’s trade balance, where imports from China far outpace exports.

South Africa’s automotive sector is a key employer and export earner, and sustained import growth could strain local production if not offset by stronger exports.

Paulina Mamogobo, chief economist at the National Association of Automobile Manufacturers of South Africa (NAAMSA). [X, formerly Twitter/@EmpowaYouth]

“Even with our production and what we are able to produce locally, competing with the Chinese influx, and this is what we call the Chinese aggressive growth, is going to be quite significantly difficult,” she said.

Mamogobo further warned that the pace of growth in China’s automotive industry will continue to impact African markets.

“Just in 2026, we’re expecting an auto growth in China of over 25%, that’s about 7 million cars, just in 2026. So where will that be going? In markets such as our market, which is the African market.”

She also noted the rapid expansion of Chinese brands in South Africa.

“In 2024, we had 8 Chinese brands reporting to NAAMSA. In 2025, that grew by an additional 6 brands as well. In 2026, we’re actually expecting that we will have even those brands expanding their derivatives more than six times what was reported in 2025.”

The trend underscores the growing influence of Chinese automotive firms in Africa and raises questions about the sustainability of South Africa’s domestic industry amid global competitive pressures.

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