Great Wall Motor (GWM), a Chinese automaker, is looking for ways to increase its manufacturing presence in South Africa, such as acquiring an existing production site or forming a partnership with another manufacturer.
As GWM assesses the most feasible path into local vehicle manufacture, company leaders disclosed that talks have already taken place with significant industry participants, including Mercedes-Benz and Nissan.
Kevin Li, Managing Director of GWM South Africa, stated that the company is keeping its options open during the introduction of a new Haval H6 plug-in hybrid SUV.
He claims that both outright plant acquisition and contract manufacture through an existing facility are being considered. He pointed out that it would take a lot longer to build a new factory from the ground up
“We do have discussions with Mercedes-Benz from last year, and we did also have discussions with Nissan,” the managing director stated.
“Contract assembly is one option. Another option is buying a plant, because (building) a new plant takes time,” he added.
GWM’s shift to domestic manufacture is part of a larger drive by Chinese automakers to grow outside their home market, Reuters reports.
As global trade tensions build and some governments ponder limitations on Chinese vehicle imports, establishing overseas manufacturing hubs becomes a more appealing option.
The corporation is also in contact with South African officials and intends to hold additional negotiations with government representatives at an upcoming auto expo in China.
However, competition in the region is increasing.
See here: Trash to treasure: U.S. Lab recycles dirty car scrap into premium vehicle metal
GWM recently lost out to fellow Chinese manufacturer Chery Automobile, which signed an agreement to take over a Nissan plant in South Africa for its own production needs.
“There is a new product that we launched, a global product called codename EC15. My vote’s on that one, because I think that’s a better product, giving us more opportunity for localization and for potential exports into Europe,” Chief Operating Officer Conrad Groenewald said.
Mercedes-Benz South Africa, for its part, insisted that its East London facility will continue to produce the C-Class.
While the company declined to comment explicitly on any potential collaboration, it did agree that production tactics can vary in reaction to changing market demands.
GWM presently accounts for around 5% of the South African automotive market and is one of the country’s top vehicle sellers.
The corporation is now looking to increase its position, particularly in the rapidly expanding SUV market.
GWM’s release of a new hybrid version of the Haval H6 targets consumers who are gradually migrating toward more fuel-efficient and environmentally friendly vehicles, as well as families’ strong desire for compact SUVs.
