Expert Insights: How South Africa’s Auto Industry Is Reclaiming Its Strength Through China and India

South Africa has long prided itself on being one of the premier auto-manufacturing hubs in Africa. The sector, unfortunately, is under threat as domestic production volumes are failing, local content levels are stagnant, and cheap imports from India and China are increasing. On 2 October 2025, Reuters reported that South Africa’s trade minister Parks Tau announced commitments from Chinese and Indian car companies to shift from so-called semi-knocked-down (SKD) vehicle assembly operations in South Africa to full or complete knocked down (CKD) or even local manufacturing.

Facts Card

Warona Nkhahle is a sales executive at Chery Piet Retief. He has experience in automotive sales and client relations, with a focus on brand education and community engagement. He currently specialises in sales strategy and customer experience.

This is not just another investment sound-byte. It has the potential to reshape one of South Africa’s key manufacturing sectors and to anchor the auto industry in the country’s industrial strategy for years to come. An expert in this field Warona Nkhahle backs this up.

For Warona Nkhahle, a sales executive at Chery Piet Retief, these shifts aren’t just statistics. They shape daily business realities, the conversations with customers, the strategies dealerships must reinvent, and the resilience needed to keep the industry’s heartbeat strong.

“One of the biggest barriers for local dealerships like ours is the economic pressure on consumers, rising interest rates, fuel costs, and the cost of living,” Nkhahle explains. “ Affordability is tight, stock availability is limited due to supply chain issues, and even load shedding affects sentiment. People think twice about taking on new expenses when the economy feels unstable”

Navigating change

As imported vehicles flood the market, dealerships like Chery Retief are rethinking how they connect with customers. Instead of competing purely on price, Nkhahle and his team emphasises on long-term value and trust. “Since imported vehicles can face pricing pressure, we focus on quality and reliability” He says. “At Chery Piet Retief, we highlight our 10-year/1 million km engine warranty, smart voice-command technology, and strong fuel economy in our hybrid lineup. It’s not just about cost, it's about customer experience.”

His strategy underscores a broader truth that local dealers must sell purpose, not just product. That purpose lies in reshaping how South Africans view their homegrown manufacturing future.

Defining Moments and Lessons in Localisation

Toyota has done well by strengthening local assembly and supplier ties

South Africa’s industrial policy now emphasises local production, and Nkhahle sees it as the industry’s lifeline. “Brands like Toyota and Isuzu have done well by strengthening local assembly and supplier ties,” He notes. Even though Chery is relatively new in South Africa, I can see the brand moving in the same direction, building long-term partnerships with local suppliers and growing its presence here.

Localisation isn’t just about economics, it’s about emotional connection. When customers know their car parts are available locally, it builds trust. “It reduces fear of long waiting times or high maintenance costs,” Nkhahle adds. “ I always tell my team to remind the customer, your car is supported right here in South Africa.” That assurance often seals the deal.

For Nkhahle, the heart of sales lies in relationships. Local manufacturing may change production numbers, but human connection drives the market. “Dealers will need to work more closely with manufacturers not just selling cars but sharing customer insights to influence production,” He says.

He believes too many underestimate the soft skills that define long-term success. “People buy from people they trust,” He smiles, “follow-ups, digital engagement, remembering birthdays or service dates, those are the underappreciated opportunities that create lifetime customers.”

When asked what he’d tell new dealerships entering South Africa’s challenging market, Nkhahledoesn’t hesitate. “Focus on relationship-driven sales, not just volume. This market is emotional sincerity, and service goes further than flashy promises. Build credibility, stay transparent about financing, and invest in community outreach.

People support brands that support their town.” Balancing innovation with affordability is another delicate act. “Use technology that makes life easier with digital financing tools or virtual test drives, but don’t lose the personal touch,” he advises. “ A phone call still carries more weight than an automated message.”

Looking forward, Nkhahle sees customers becoming more tech-conscious and eco-aware. “They want cars that feel premium but are affordable to maintain. Hybrid powertrains, safety tech, and smart connectivity are becoming the new must-haves.”

South Africa’s automotive industry stands at a defining crossroads. With renewed foreign investment, local innovation, and dedicated sales professionals like Warona Nkhahle, the road ahead looks promising not just for manufacturing, but for the human stories that power it.