Chinese vehicle manufacturer Chery, which owns the Omoda and Jaecoo sister brands, is looking into the feasibility of manufacturing vehicles in SA, in what would be a boost to the domestic market, which has taken a liking to Chinese brands.
The Omoda and Jaecoo brands are set to sell more than 11,000 cars in SA this year.
“We’re currently conducting feasibility studies in SA, which remains a key focus for both Omoda and Jaecoo. The country plays an important role in our broader global strategy, and we’re both carefully assessing opportunities to expand our presence and meet the growing local demand,” the company told Business Day.
Chinese brands such as Haval, Jetour, Omoda, Chery and BAIC have become a regular sight on SA roads.
JSE-listed Motus, SA’s leading non-manufacturing motor group with more than 300 dealerships, conceded earlier this month that it had been slow in introducing Chinese brands, which have proved popular with cash-strapped consumers.
Combined Motor Holdings (CMH) this month said almost half of its new-vehicle sales were 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 was gaining momentum, led by Chinese and Indian brands. The brands from the Asian giants have placed enormous pressure on the group’s traditional favourites — Nissan, Ford and Volvo — “which now struggle to match their pricing and feature-rich offerings”.
Cherry’s executives opened up on the popularity of the Omoda and Jaecoo brands in SA and what they believe gives the brands a competitive edge.
“The feedback we’ve received has been overwhelmingly positive. Drivers value that combination of competitive pricing, advanced features and standout design that our vehicles offer. Many also feel that the brand aligns with their lifestyles and aspirations, which has helped build a strong emotional connection and loyalty even in a challenging, highly competitive market,” the company said in written responses.
“The response from drivers locally and abroad has been exceptional. In the UK, for instance, the Jaecoo J7 became the fourth best-selling vehicle in September, with 6,489 units sold just 10 months after launch.
“Demand is also growing steadily in countries such as Australia and Poland, reflecting the global appeal and increasing confidence in Omoda and Jaecoo.”
The biggest union in SA’s motor sector has called on Chinese brands to manufacture their cars domestically, instead of relying on imports, with SA consumers essentially creating jobs in China.
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