The owner of Chinese car brands Omoda and Jaecoo expects to sell about 11,000 cars in SA after a strong third-quarter sales performance.
The brands reported a 26% surge in sales in the quarter under review, after selling nearly 2,500 cars in the period.
The surge is even bigger when compared with the first quarter performance, with third-quarter sales up 50%, underlining the popularity of the brands among SA consumers, a popularity also enjoyed by their Chinese peers.
“The brands are on track to surpass the 11,000-unit milestone before the end of 2025. Growth is expected to accelerate as new models join the portfolio,” Chery International said.
Combined Motor Holdings (CMH) this month said almost half of its new-vehicle sales are Chinese and Indian brands, which have displaced traditional marques for SA consumers.
The surge in Chinese and Indian brands helped CMH’s motor retail and distribution unit report a more than twofold increase in pretax profit in the six months to end-August.
The JSE-listed group, which has more than 100 dealerships across the country, said the shift from luxury vehicles to more affordable ones is gaining momentum, led by Chinese and Indian brands, and the brands from the Asian giants have placed enormous pressure on the group’s traditional favorites — Nissan, Ford and Volvo — “which now struggle to match their pricing and feature-rich offerings”.
Motus, SA’s leading non-manufacturing automotive group with more than 300 dealerships, conceded earlier this month that it had been slow in introducing Chinese brands that have proven popular with cash-strapped consumers.
Harry Kellan, CEO of FNB, whose clients make up about 60% of WesBank’s loan book, told Business Day in September that Chinese car brands were entering the market rapidly, offering advanced technologies, electric and hybrid options, and competitive pricing.
WesBank has partnered with several of these brands through multiple supplier and dealer alliance agreements, which bolstered advances in growth. Other SA financing houses have also entered into similar deals.
Chinese brands such as Haval, Omoda, Chery and BAIC have become a regular sight on SA roads.
Hans Greyling, GM of Omoda & Jaecoo SA, said with stock levels shifting and year-end campaigns under way the brands were well positioned to maintain their upward trajectory and respond to evolving buyer demand.
“We’re encouraged by the strong momentum seen in the third quarter. The response from local drivers shows that design, technology and value remain key priorities and our expanding line-up continues to deliver on all three.”
