CompaniesPREMIUM

Chinese carmaker Changan to open 45 SA dealerships, create 600 jobs

Jameel Motors SA to oversee local rollout with Dubai-based backing

State-owned Chinese carmaker Changan will launch operations in SA through its distributor, Jameel Motors SA. Picture: SUPPLIED (Changan)

State-owned Chinese carmaker Changan expects to create up to 600 jobs in SA over the next two years as it launches operations in the country through its distributor Jameel Motors SA.

The launch, held at Brooklyn in Pretoria on Thursday, comes as Chinese and Indian brands tighten their grip on the local market, with Changan joining the likes of Haval, Chery, BAIC and most recently Tata, which re-entered the market earlier this year.

Jameel Motors SA, an independent international automotive distributor and mobility solutions provider owned by the Saudi Jameel Family, will oversee Changan’s local rollout.

The distributor plans to open 25 dealerships by end-2025, expanding to 45 by 2027, and said each new site would contribute to new employment and supplier opportunities across retail, logistics and service networks.

Marinus Venter, country manager of Jameel Motors SA, said the timing was perfect for Changan’s entry.

“The best time to plant a tree was 20 years ago; the second-best time is today,” he said. “South Africans have become more open to Chinese brands. The success of other entrants has made adoption much easier.”

While he declined to disclose the total investment, Venter described it as “significant”, involving both capital and human resources. Jameel Motors has deployed international logistics, warehousing and technical experts to support the rollout, he said.

Business Day recently reported that National Union of Metalworkers SA general secretary Irvin Jim had called on the government to force foreign carmakers, particularly Chinese and Indian brands, to invest in local manufacturing as a condition for selling their vehicles locally.

Speaking at the Auto Week conference, Jim warned that the rapid rise of imported vehicles, which now account for 64% of local sales and are causing job losses and lower production among domestic manufacturers, pose a threat to the country’s motor industry.

He accused the government of inaction and urged bold industrial policy, including higher import tariffs, loss of duty credits and tougher localisation requirements to protect local jobs and revive the sector.

However, Changan, which has more than 160 years of manufacturing history and operates globally, will initially import its vehicles from China. While there are no immediate plans for local assembly, Venter said production in SA could be considered “if viable”.

He said the early focus would be on building the brand, not chasing volume. “We’re not here to flood the market or sell on price alone. Our priority is to establish a strong, trusted brand in SA,” he said.

Changan’s product range will include SUVs, bakkies and hybrid models, with the new Changan Hunter positioned as a fuel-efficient alternative in the mid-size bakkie segment. The company also plans to introduce the Deepal range-extended electric vehicle (EV) next year, a hybrid model designed to eliminate “range anxiety” by combining electric driving with an onboard generator.

Venter said parts supply and after-sales support had been a focus area. Jameel Motors has partnered with DP World for logistics and warehousing to ensure rapid parts availability across its dealer network.

“We have made sure the right infrastructure is in place from day one: parts, logistics and technical support,” he said.

The launch comes as the country’s motor industry faces headwinds and opportunities. The sector contributed 5.2% to GDP in 2024, supported 500,000 jobs and generated R268.8bn in exports. But it is grappling with supply chain disruptions, port congestion and slowing European demand, while new entrants are betting on affordability to capture market share.

Affordability has become a defining factor for consumers and entrants have taken advantage. TransUnion’s latest Mobility Insights Report shows South Africans are keeping cars for six to eight years, with only 39% of motorists financing new vehicles, down from 44% in 2020. The squeeze has driven demand for value-oriented brands and flexible ownership models.

Changan and Jameel Motors are positioning themselves as a premium yet attainable alternative, banking on brand heritage, solid engineering and global scale to win South Africans over.

“Our approach is simple,” said Venter. “Build trust first, then grow sales. We’re investing in the future, not just entering the market.”

Updated: October 30

The story has been updated for clarity

zulun@businesslive.co.za


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