Chinese carmaker Great Wall Motors (GWM) has confirmed plans to build vehicles in South Africa. This follows claims that GWM is in talks with Mercedes-Benz to share the manufacturing plant in East London.

GWM regional executives say they are looking to share a plant or acquire an existing plant if available, reports The Citizen.

Managing director of GWM South Africa Kevin Li says they are having discussions with Mercedes-Benz, and they have also had discussions with Nissan. He was speaking at the launch of the Haval H6 plug-in hybrid sport utility vehicle (SUV).

Chinese presence in SA

Chinese cars have become hard to ignore in South Africa. Local industry leaders previously called for these cars to be made in the country to protect jobs and boost the economy. GWM’s plans are now answering that call.

Li says if sharing a manufacturing plant does not work, they are willing to acquire an existing plant if available.

“Another option is buying a plant, because new plants take time, and we also have discussions with related stakeholders on local production,” says Li.

“The policy is not favourable for new entrants, especially for us.”

GWM’s talks with Mercedes-Benz follows after it lost out to rival Chery, which outbid it for Nissan’s Rosslyn plant earlier this year.

GWM models to be made in SA

Li adds that there will be more discussions on which model they will produce in the country. “So there will be more discussion on the local production, but how we agree with Mercedes-Benz or other solutions is still in discussion.”

GWM makes a wide range of vehicles, including Haval H6, Jolion, Tank off‑road SUVs such as the Tank 300 and Tank 500, pickup trucks like the P‑Series and electric vehicles like the Ora 03 hatchback.

Automotive Production and Development Programme (APDP) goals

“I think in addition to that, National Association of Automobile Manufacturers of South Africa (Naamsa) is busy with all the Original Equipment Manufacturers (OEMs) at the moment. APDP2, or APDP is not worked out the way it’s intended to. So the intention of APDP was that 50% of the produced volume is exported,” says GWM chief operating officer Conrad Groenewald.

APDP is a South African government policy designed to support and grow the local automotive manufacturing industry by encouraging vehicle production, investment, and exports.

He highlighted that OEMs are running below the target. “A lot of the plants are being underutilised in South Africa at the moment,” says Groenewald.

“We are talking to, as a consolidated OEM and automotive group, via Naamsa to the government about revising APDP and lowering the barriers of entry to make it more viable for more OEMs to produce, for more automotive brands to produce in South Africa.”

Groenewald says losing the Nissan plant to Chery will not make them stop.

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