NAIROBI, Kenya (AP) — Chinese automakers are increasingly shifting from exporting vehicles to building them in Africa, betting that rapid urbanization, a growing middle class and supportive government policies will make the continent one of the industry’s last major growth markets.
It’s part of a strategy for coping with slowing demand at home and rising trade barriers in Europe and North America. Analysts say the shift could reshape Africa’s automotive industry by creating jobs, developing local supply chains and accelerating adoption of electric vehicles, although weak infrastructure and policy uncertainty remain significant obstacles.
In July, Chery, China’s largest auto exporter, acquired Nissan’s former Rosslyn plant near Pretoria, South Africa, where it plans to make plug-in hybrids, battery-electric vehicles and models under its Jetour brand.
The move reflects a broader strategy by Chinese automakers to manufacture closer to African consumers rather than rely solely on imports, though the trend is just getting started.Beijing Automotive Group (BAIC) has an automotive manufacturing and assembly facility in Gqeberha (Port Elizabeth), South Africa, and China’s Great Wall Motor has some localized assembly and component distribution capacity.
“Africa has become known as the next frontier for the automotive market,” said Hiten Parmar, executive director of The Electric Mission, a South African nonprofit promoting sustainable mobility.
Analysts say South Africa, Morocco, Kenya, Ethiopia and Ghana are among the countries best positioned to attract Chinese EV investment because of their industrial capacity, supportive policies or growing electricity infrastructure. Morocco also benefits from proximity to European export markets, while Zimbabwe’s large lithium reserves could support battery supply chains.
- AP