The electrically focused BYD has announced plans to grow operations in South Africa through 2026. Reports have suggested that the Chinese automaker has issued a target of nearly tripling its dealer network inside the country.
This comes via Reuters, which was informed by BYD of its desire to become the dominant purveyor of “NEVs” (neighborhood electric vehicles) within the region. China has focused a large amount of its international investment upon Africa and its automakers have followed suit.
The assumption is that there is a lot of development potential in Africa, whereas other markets are more established. In terms of automobiles, Western markets have also presented obstacles to the Chinese incursion. The United States has done what it can to make importing Chinese automobiles exceptionally difficult, even as it’s been threatening stiff tariffs upon other countries.
While Europe has been more accommodating, and seems willing to embrace affordable automobiles during a period of economic duress, Chinese tastes aren’t widely appreciated by Western consumers. Touch controls are no longer viewed as luxurious or novel. At the same time, other tech inclusions (which have been a hit in China) are now being viewed as invasive and annoying — rather than forward thinking.
With the above in mind, Chinese companies have been looking toward Africa as more of a clean slate.
From Reuters:
BYD’s move comes at a time of growing competition in Africa’s largest automotive market, where sales of new energy vehicles are rising and other Chinese companies — such as GAC, Chery and GWM — are also making inroads.
Launched in 2023, with its BYD battery electric ATTO 3 vehicle, the automaker has about 13 dealerships.
“By the end of the year, we will have about 20 dealerships around the country. The aim is to expand that to about 30, 35 the next year,” Steve Chang, General Manager of BYD Auto South Africa told Reuters in an interview on Wednesday.
BYD currently offers six models in the South African market, with its plug-in hybrid Shark pick-up, hybrid SEALION 6, and pure electric SEALION 7 SUV models launched in April, completing its hybrid and electric dual-powertrain strategy.
While the alleged focus is on “NEVs” designed to serve as all-electric, local runabouts. That isn’t all BYD is selling and that’s presumably wise considering South Africa has been confronting a self-confessed energy crisis since roughly 2007. The country is primarily dependent upon coal for energy production. However, those plants and the surrounding infrastructure are old and haven’t been updated. There are even allegations that they aren’t getting proper maintenance.
With the national electrical grid only seeing increased demand over the years, blackouts have become fairly common in certain parts of South Africa. The country occasionally undergoes periods of planned energy rationing to prevent this. But that would still make owning an EV potentially challenging.
On the flipside, BYD is offering a few relatively affordable vehicles vs what’s available in other parts of the world. In China, the battery electric ATTO 3 starts just below $15,000 (converted to USD) and offers roughly 200 miles of range on a single charge using the smallest battery pack available. However, some of its hybrid models are significantly more expensive — potentially prohibiting them from becoming big sellers.
Despite there being more than a few well-heeled individuals residing in South Africa. The average annual income would be equivalent to about $19,000 USD. But those numbers come up dramatically in urban areas (e.g. Johannesburg or Cape Town) where BYD would presumably establish a majority of its forthcoming dealerships.
The Chinese automaker has noticed that African take rates of EV, while still extremely modest, have nearly doubled within the last 12 months. BYD says it wants to be cautious but likewise sees an opportunity of beating rivals to the punch.
“We want to educate and cultivate the market of South Africa and make sure that the South African consumers can catch up with the rest of the world,” Steve Chang, General Manager of BYD Auto South Africa, told Reuters.
“South Africa is actually one of the most important automotive markets in the southern Hemisphere. It’s probably the biggest market in all of Africa, so it’s a market that we have to look at and see how we can develop the market.”
[Images: BYD]
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