Chinese marques creating new frontiers across Africa

Startups and State-owned companies investing in untapped markets throughout continent

A Neta showroom opened in late June in Nairobi, capital of Kenya — the Chinese new energy vehicle startup's first dealership in Africa.

"Kenya has the largest automotive market in East Africa and the prospects are bright for new energy vehicles," said Neta in a statement.

The carmaker explained that the African nation is seeing steady economic growth, a growing middle class and a raised awareness of NEVs' role in environmental protection.

Following the flagship store's opening will come an accelerated growth plan in Africa, said Neta.

In three years, the number of dealerships is to grow to 100 across 20 countries on the continent, with combined annual sales expected to exceed 20,000 units.

Neta is just one of many Chinese carmakers eyeing growth potential in Africa, as they ramp up efforts to explore global markets.

China's largest NEV maker, BYD, entered Kenya back in 2021 in partnership with META Group Africa, according to Bloomberg.

BasiGo, an African electric mobility company, has assembled electric buses with BYD spare parts in Kenya as well.

In January, BYD announced its entry into the Rwandan market through partnership with local company CFAO Mobility.

Marc Hirschfeld, CEO of CFAO Mobility, said: "BYD is one of the world's leading manufacturers of electric vehicles, with a level of innovation know-how that now matches the expectations of our markets in Africa."

Hirschfeld said a whole new ecosystem has to be designed around mobility in African cities, adding that this applies not only to individual and corporate customers, but to stakeholders including urban public transport networks and government agencies.

BasiGo signed a partnership with BYD in 2023 to use its electric buses to address public transport shortages, modernize the sector and decarbonize road transport in the Rwandan capital of Kigali.

The Rwandan government has incentivized not only the manufacture and import but the acquisition of EVs, according to news website Africa Finance Today.

On Tuesday, South African President Cyril Ramaphosa visited BYD during his trip to Guangdong province, where the NEV maker is headquartered.

Ramaphosa experienced several BYD vehicles and expressed his appreciation of the Chinese NEV maker's technological prowess.

BYD entered the South African market in 2023, introducing the Standard Range and Extended Range variants of its Atto 3 crossover EV.

State-owned Chinese carmaker BAIC has built a car manufacturing plant in South Africa, with its annual production capacity reaching 50,000 units.

Construction on the plant started in 2016 and the first vehicle at the plant rolled off the assembly line in 2018.

The $226-million plant offers car buyers the latest BAIC products in South Africa, the largest African market for vehicles, and has helped grow the local automotive industry by training staff.

Great Wall Motor and Chery have been active in Africa as well. Statistics show that both were on the top 10 list of popular carmakers in South Africa in July, with Chery seizing a 3.9 percent market share and Great Wall Motor, 3.5 percent.

Earlier this year, Great Wall Motor partnered with Tractafric Motors to explore the Moroccan market.

By 2025, Tractafric plans to set up 16 dealerships in nine Moroccan cities to sell NEVs from Great Wall Motor.

Tractafric is a subsidiary of Optorg, which has been authorized to sell vehicles from global carmakers including BMW, Mercedes-Benz, Renault and Ford.

Egypt is another hot destination for Chinese carmakers. Egyptian investment company GV Investments signed an agreement earlier this year with China FAW Group to produce affordable electric vehicles for Egyptians.

Under the deal, a subsidiary of GV Investments will begin domestic production of a FAW model from the first quarter of 2025. The vehicles will be exported as well, to the Middle East, other African countries, Europe and Latin America.

Geely Auto CEO Gan Jiayue said the company sees Africa as one of its fastest-growing destinations overseas.

Chinese bus maker Yutong has been exploring the African market extensively. It is present in almost 50 countries including Nigeria, Ethiopia, Angola and Algeria.

The Henan province-based vehicle maker said its cumulative sales in Africa have totaled more than 22,000 units, accounting for 38.6 percent of China's total bus exports to the continent and contributing to local transition to green transport.

Yutong has also set up a plant in Ethiopia, which has not only helped raise the local industrial level but offered 2,000 jobs, directly and indirectly, for local people.