Chinese automakers eye opportunities in African market

Li Xueyong (L), president of JETOUR Auto, speaks during an interview with Xinhua in Johannesburg, South Africa, Sept. 20, 2024. (Xinhua/Zhang Yudong)

JOHANNESBURG, Sept. 23 (Xinhua) -- Chinese automakers are accelerating their global expansion, with a particular focus on increasing their presence in African countries. On Friday, JETOUR Auto, a Chinese automobile brand, unveiled two new right-hand drive (RHD) models, DASHING and X70PLUS, in Johannesburg, South Africa, marking another step forward in its global growth.

In 2023, China exported 4.91 million vehicles, achieving a year-on-year growth of 57.9 percent, making it the world's largest automobile exporter for the first time. The massive growth was propelled by a surge in the exports of new energy vehicles (NEVs), which soared 77.6 percent to more than 1.2 million units last year.

"The global expansion trend offers great opportunities for Chinese auto companies," Li Xueyong, president of JETOUR Auto, told Xinhua in a recent interview, adding that the company has established more than 600 sales and service networks in over 50 countries.

As an economic powerhouse on the African continent, South Africa boasts a mature car market. Since Chinese automakers entered the South African market more than a decade ago, over 10 Chinese brands have established a presence and achieved strong sales.

"We have placed great importance on the South African market, which is highly competitive and mature, and we have made thorough preparations to enter it," said Ke Chuandeng, vice president of JETOUR Auto. He added that the company aims to establish 40 sales networks in the country by the end of this year and sell 30,000 vehicles over the next three years.

As one of Africa's largest car producers, with a history of more than 100 years, South Africa's car market is relatively saturated, making it challenging for new entrants to gain a foothold. However, as more African countries turn to NEVs, Chinese automakers are finding new opportunities on the continent.

According to the National Association of Automobile Manufacturers of South Africa, NEV sales in South Africa surged from 896 units in 2021 to 7,746 units in 2023. Last year, the country released a white paper on electric vehicle development, aiming to increase NEV market share from 1.45 percent in 2023 to 20 percent by the end of 2025.

For JETOUR, the African continent holds significant potential for NEV development.

"African countries have abundant metal mineral resources such as lithium and nickel, providing ample raw materials for batteries. South Africa's auto production and assembly began in the early 20th century, laying a solid foundation for its car industry," said Ke.

For Chinese automakers, the development and introduction of NEV models is key to standing out among international competitors. "JETOUR is actively introducing NEVs to the global market and has a comprehensive technological and product layout for hybrid, battery-electric, and other vehicles," Ke added.

To meet the diverse demands of consumers, JETOUR has launched the "Travel+" strategy, which integrates people, vehicles, and the environment through the ecological layout of the entire travel industry chain, said Li.

"As a Chinese company, we are still adapting to the local market. Today's launch of the DASHING and X70PLUS models is just the beginning, and we plan to introduce more off-road and hybrid models, led by the T2, for African customers in the future," Li said.

Beyond promoting its products, Chinese automakers are also committed to fulfilling their social responsibilities in the global market. In addition to the new model launches, JETOUR announced a strategic partnership with the Cheetah Conservation Fund (CCF) for wildlife conservation on Friday.

"JETOUR will collaborate with the Discovery Channel to produce a documentary on cheetah conservation to raise public awareness and encourage involvement in protecting cheetahs. We will also support the CCF by adopting cheetahs and donating vehicles for official use to contribute to wildlife protection," said Li.

Since its inception in 2018, JETOUR has adhered to its unique "Travel+" strategy. With cumulative global sales exceeding 1.22 million units, the company set a new record with over 50,000 units sold in August this year.

Looking ahead, Li expressed full confidence and ambitious plans for the African market. "With the launch of new products in South Africa, JETOUR's presence in RHD markets is gaining momentum. In the future, we will also explore the European Union and other markets," Li said.

Ke Chuandeng (R), vice president of JETOUR Auto, speaks during an interview with Xinhua in Johannesburg, South Africa, Sept. 20, 2024. (Xinhua/Zhang Yudong)