M a r k e t N e w s

China To Invest $823M In South African Auto Manufacturing

Posted on : Friday , 26th August 2016

 China’s government-owned Beijing Automobile International Corporation said it plans to invest $823 million in a new automotive manufacturing plant in Port Elizabeth, South Africa.

The new facility in the Eastern Cape’s Coega Industrial Development Zone is expected to produce between 40,000 and 50,000 cars a year, with capacity to double in a later second phase, The Brics Post reported.
This cars will be sold in South Africa and the rest of the continent.
Auto manufacturing is one of the fastest-growing industries in South Africa, and one of the bright spots in a slowing economy that some think is headed for recession.
South Africa’s government auto-incentive program has attracted companies including BMW AG, Ford Motor Co. and Toyota Motor Corp. to set up and invest in factories, Bloomberg reported. The industry has the potential to boost production by almost 50 percent to more than 900,000 vehicles a year by 2020, a local producers’ group said in May.
In 2014, Chinese vehicle maker First Automotive Works launched a $44.9 million truck assembly plant in the Coega development zone, which is expected to produce about 5,000 trucks and 30,000 passenger and light commercial vehicles a year, Brics Post reported.
The Chinese investment is one of the benefits of South Africa’s membership in the BRICS, President Jacob Zuma said at the time.
The new Chinese investment will bring much-needed jobs to South Africa, although “fears will inevitably be that the Chinese will bring their own laborers in to do much of the work as they have elsewhere in Africa,” Biz News reported:
Earlier in 2016, Zuma launched a new vehicle assembly line at the Toyota factory in Durban, Brics Post reported.
Global automotive producers continue to have confidence in South Africa as an investment destination, and the supportive policy environment it offer, Zuma said.
The new Chinese investment was part of the Forum on China-Africa Cooperation held in Johannesburg in December 2015. Zuma and Chinese Prime Minister Xi Jinping signed 26 bilateral agreements valued at approximately $7.48 billion.
Despite the downturn in domestic auto sales, exporters anticipate an improvement in vehicle export sales during the second half of 2016, according to the National Association of Automobile Manufacturers of South Africa, Brics Post reported.
South African new vehicle sales peaked at 649, 296 units in 2013. This included 450,296 cars, 167,996 light commercial vehicles, 11,584 medium commercial vehicles and 19,340 heavy commercial vehicles. The largest sectors are intensely competitive with over 52 brands and 2,595 models in the new-car and light-commercial vehicle sectors.
China’s investment is welcome, said Matt Genrich, communications manager for Volkswagen South Africa, in a BRICS Post interview.
“The South African motor manufacturing industry requires more volumes to attract more suppliers to invest in South Africa from which we could also benefit,” he said.

Source : afkinsider.com
Featured Companies
  • Bajaj Auto
  • Nissens A/S
  • Bajaj Auto
  • Tire Group International, LLC.
  • dubaiexporters.com
  • Steelmate - Think safety think Steelmate

Complete List  

Advertisers in previous issue:

  • Nordic Trailers Ltd we pride ourselves on importing and selling world leading car trailers from Respo.
  • Pensol Industries Limited has a wide range of products, both in Automotive and Industrial lubricants
  • JNBK Corporation is a trusted leading manufacturer for top quality brakes with a widest range of products covering main applications for Japan, Europe & Americas.
  • JINGZHOU JINGFU AUTO PARTS CO.,LTD , a Taiwan & Hubei joint venture, is focusing on manufacturing and supplying professional suspension parts.
  • Auto Parts
  • Best Choice International Trade is one of the leading tyre exporter in China, and a major supplier of tyres and engines in Beijing Municipality.
  • Yellow stone diesel-One of the leading manufacturers of engine parts.
  • High quality spare parts for truks
  • The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a wide range of industries, spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance.
  • Mobile Crushing and Screening plant
  • GARAGE 1 has been purchasing cars, trucks and jeep in order to recuperate esclusively top quality used complet engines, gearboxes and mechanicals parts.
  • Product includes Braking, Steering, Suspension, Filtration, Transmission, Cooling, Heating, Electrical, Engine, Lubricants, Chemicals, Wiping, Lighting etc.
  • GUANGZHOU YIFENG AUTO PARTS MANUFACTURING CO., LTD. is a professional manufacturer and distributor of automotive filters, mainly specializing in all kinds of oil filters, fuel filters and air filters.
  • Range,Service,Quality.
  • Meizhou Jinda Auto Parts Co.,Ltd. is a state-owned enterprise ,specializing in manufacturing auto clutch disc and brake.
  • DM is one of the leading manufacturer specialized in reflective material in the world, which is only one manufacturer that not only produce personal safety production but also produce traffic safety production in China.
  • Dealers of Honda,Yamaha,Suzuki.
  • Changzhou Guoshi Vehicle Accessories Co.,Ltd. is proficient in vehicle spare parts manufacturing and has involved a lot of capital, time and resources to make us prominent in this industry.
  • Exporters of Genuine & Non Geuine Parts for Japanese Cars.
  • For European Trucks & Engine Parts.
  • TOMAD International, Inc. is an export management company specializing in sales and marketing within the Middle East and Africa region.
  • China Jiangsu Dongxing Auto Decorations Co.,Ltd,established in 1989,the manufacturer of cabin and body parts for truck Mercedes-Benz, Volvo,Scania,Man,Iveco,Daf and Renault.
  • Tyres,Chain,Battery
  • We are producing six categories and nearly one thousand kinds and sizes of bias tyre, OTR tyre, radial tyre, Industrial tyre, agricultural tyre and solid tyre.
  • Rolman World is one of the largest and most established distributors of bearings and related technical services in the Middle East and Africa.
Afrotrade International Marketing, Tel: +971-50-6285684
© 1998-2021 Afrotrade