The Rapid Growth of Chinese Vehicles
Encroaching the global market
Surpassing Hyundai in South Africa
The Chinese automobile industry has attracted attention for its remarkable growth over the past few years. Although it was possible thanks to the support of the Chinese government, the time has come to admit that it has competitiveness that can threaten major global automakers.
In the first half of this year, China’s BYD surpassed Tesla in first place in the global electric vehicle market share. Recently, Chinese vehicles have been attracting attention as they have recorded higher sales than Hyundai vehicles in overseas markets.
Compact SUV Sales
Surpassing Tucson for 1st and 3rd Places
According to the latest statistics from the National Association of Automobile Manufacturers of South Africa (NAAMSA), Haval’s H6 sold 5,032 units between January and November 2023. This means that it ranked first in the compact SUV segment, beating the Volkswagen Tiguan (3,165 units) by a wide margin. Haval is a brand under Great Wall, the largest Chinese SUV manufacturer.
In addition, China’s Chery Automobile’s Tiggo 8 Pro ranked third with 1,767 units sold. Statistically, it is only 1/3 of the Haval H6, but it is more overwhelming than Hyundai’s Tucson (1,283 units). Toyota RAV4 and Mazda CX-5 have maintained their top rankings, but they fell to 6th and 5th place this time, respectively.
Chery’s Re-entry After 3 Years
Offering a 10-year, 1 Million km (about 621,371 miles) Warranty
Meanwhile, Chery Automobile entered the South African market in 2008 but was forced to withdraw. It left the market in 2018 due to many customer complaints about the low-quality level at the time, parts supply issues, and after-sales service. However, three years later, in 2021, they announced a re-entry into the South African market by launching a new model called ‘Tigo 4 Pro’, and the result was successful.
Currently, Chery Automobile is selling the Tigo 7 Pro and its flagship model, the Tigo 8 Pro, in the South African market. Learning from past problems that led to forced withdrawals, Chery Automobile has established a large parts warehouse and provides 24-hour emergency response service. The new model warranty conditions are at an unprecedented level of 10 years, 1 million km (about 621 371 miles).
Targeting the Market with Cost-Effectiveness
Existing Global Automakers under Threat
Chinese automakers, such as Chery and Great Wall’s Haval, have been targeting the South African market with lower prices while providing more convenience features than competing models. The prices of SUVs from these Chinese automakers are less than 500,000 rand (about $26,331), while European models such as the Peugeot 3008 and Citroen C5 are relatively expensive, at 525,000 to 700,000 rand (about $27,647 to $36,864). European, Japanese, and South Korean automakers that once dominated the South African market are struggling.
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