There is no doubt that Chinese carmakers have hit the big market in Africa. From Cape Town to Cairo and from Johannesburg to Lagos, Chinese carmakers are playing big in the local markets through their national representatives. They seem to be enjoying the ”boom’, from all indications, ‘ even in the face of gloomy economic conditions in some of the African countries.
Some of the Chinese automakers currently making waves and doing good business across Africa include Chery Automobile, Changan Automobile, GAC Motor, JAC Motor and BYD as they play in both the Internal Combustion Engine (ICE) as well as fully electric and hybrid markets.
Offering mouth-watering and almost unbeatable prices for their various exotic and eco-friendly models, they also offer between six and seven-year warranty or 200 kilometres, whichever comes first, on their vehicles thus giving the hitherto popular Japanese, American, European and even the relatively cheaper Korean vehicle brands a run for their money.
Also spending big on marketing efforts and investing heavily in after-sales services, the Chinese automakers are now sending jitters down the spines of European, American and Japanese automakers as they seem to be passing down a strong message that they are, indeed, in the African market for the long haul.
GAC Motors is the biggest Chinese automaker in the Nigerian local market and has penetrated almost all the state governments which it supplies its popular GAC models through its local representatives, CIG Motors. When it celebrated the first anniversary of its partnership with the Lagos State Government a few months ago, GAC Motors showcased the 2,000 locally-assembled models produced within a year, as part of the joint venture with Lagos State Government, at the Acme Road, Ogba Lagos assembly plant. A year before the celebration, the Lagos State Government had boosted its newly-inaugurated LagRide Taxi fleet with 1,000 units of various GAC models, some of which it also distributed to many of its officials as the GAC models have now become the preferred vehicle brand of the Lagos State Government.
Last December, Mikano Motors, the fastest-rising automotive company in Nigeria, announced its partnership with another leading Chinese carmaker, Changan Automobile, at an elaborate ceremony in Lagos during which about seven Changan models already available in the Nigerian market were displayed.
At the event, the General Manager, Mikano Motors, Ralph Haidar, who is now the Managing Director of the company, hinted about Mikano’s big plan for Changan even as he disclosed that Mikano Motors had concluded plans to take Changan to Ghana, Gabon, Cote D’ivoire and other neighbouring countries.
Justifying the decision of Mikano to go for Changan, Haidar said: “Changan, which is the number one selling auto brand in the Middle East and the biggest export from China to Nigeria, has given us more models to market here in Nigeria. This means we have a diverse range of models from this top Chinese automaker to offer Nigerians.
“It is the best brand in the Middle East and other regions, and has outstanding service in safety and innovation compared to its competitors.” Changan is one of the top Chinese auto brands that is gaining immense popularity worldwide and is known for its value offering across automotive segments.
“Changan has a different range of models for various levels of customers, and robust financing agreements with banks that will make ownership of the cars smooth. It is currently the only brand in Nigeria that can cater for any organization or governmental body and or individual who wishes to buy a brand new, efficient, safe, stylish and affordable car that has earned the admiration of many customers internationally.”
Only last month, Mikano Motors made history when it became the first in sub-Saharan Africa to launch the trendy and premium Changan model, Uni T SVP, into the Nigerian local market even as it plans to score another sub-Saharan African first with the launch of a luxury 7- seater SUV with all the hi- tech features and up to 6 – year warranty.
Chery Automobile is the latest ”beautiful bride” in the Nigeria auto market as the leading Chinese vehicle brand is pushing hard for a market share even in its second coming with highly-improved designs and eco-friendly models as its authorised national representative, Caloha Nigeria, is currently embarking on a series of displays across Lagos to showcase the unique features of the Chery brand.
Speaking about Carloha’s mission at a recent Chery extravaganza held at the Ikeja City Mall in Lagos, Director of Sales and Marketing at Carloha Nigeria, Joseph Omokhapue, said: “We are thrilled to bring the Chery Display to Ikeja City Mall and to showcase the incredible lineup of vehicles that Chery has to offer. This event is a testament to our commitment to providing our customers with unparalleled automotive experience, and we look forward to welcoming everyone to this fun-filled celebration of innovation and excellence.”
In South Africa, Chery is a leading brand with 1,060 units of the Tiggo 7 Pro series sold within the first three months of the year, thus coming third in sales for the midsize SUV segment according to retail sales data for the first quarter of 2024 . This came as Chery South Africa continues to woo the local market with juicy offers and deals including a 7-year/200 000km warranty on its vehicles for a limited period.
It is very important to note that Chinese carmakers are really leveraging the support and incentives from the Chinese Government in their global market push especially in Africa. With China developing its auto industry as a global force, Chinese automakers are now exporting so many vehicles – both ICEs and electric – across the world .
This global push is being given a boost by the country’s shipping fleet – already the eighth largest in the world as China is also expanding its shipping capabilities to enable it to become the fourth-largest fleet in the world, just as it continues to open new trade routes.
Chinese carmakers such as BYD, which are already giving Tesla a run in terms of electric vehicles sales, as well as Changan, SAIC Motor, Chery and others, are now ordering new ships as the country’s auto industry has overtaken Japan’s as the world’s largest exporter. However, the most important factor responsible for the growing influence and penetration of Chinese automakers across global markets, including Africa, is the Chinese government’s heavy subsidies, which critics say have made Chinese cars unfairly competitive against higher-priced Western models. Already, this is being criticised mostly in Europe, America and others and is being resisted in the West, especially in the U.S., where the U.S. government has made it nearly impossible for Chinese companies to sell vehicles in the country.
Meanwhile, German carmakers have opposed punitive tariffs on Chinese electric cars. With the realisation by the European Commission that Chinese electric cars are always 20 percent cheaper than models built in the European Union, following its investigation into whether or not electric cars in China are benefiting from illegal subsidies, the German Association of the Automotive Industry (VDA) has called for dialogue on both sides to avoid harming the sector’s development. “Anti-subsidy measures, such as additional tariffs, would not solve the challenges for the European and German automotive industry. On the contrary. “The purpose of countervailing duties envisaged by the European Commission could quickly have a negative impact in the event of a trade conflict,” VDA president, Hildegard Müller, told the Sunday edition of the Die Welt newspaper. This is according to a recent dpa report, as Muller was quoted as saying that a trade conflict would also jeopardise the transformation towards electromobility and digitalisation.
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Olaolu Olusina is the Editor of a leading national newspaper in Nigeria and Managing Editor of pan-African automotive news platform, AUTO REPORT AFRICA (www.autoreportafrica.com). He can be reached via email: olaolu.olusina@autoreportafrica.com and WhatsApp +234 811 675 9799.
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EduTimes Africa, a product of Education Times Africa, is a magazine publication that aims to lend its support to close the yawning gap in Africa's educational development.
