Why Chinese and Indian Automakers Are Betting Big on South Africa in 2025

South Africans, buckle up; our roads are soon to be teeming with new models from China and India. The country is fast becoming a launchpad for these automakers across Africa, and 2025 is shaping up as a big year.

A Strategic Pivot via BRICS

With US trade relations becoming ever more fraught, South Africa is leaning deeper into its BRICS alliances. That shift has ignited a wave of investment from Asia, putting automakers like Leapmotor, LDV, and Tata Motors in pole position in the local market. It’s about more than selling cars: it’s about partnerships, infrastructure, and access to Sub-Saharan markets.

Leapmotor Drives into the EV Scene

Leading the charge is Leapmotor, a Chinese new-energy vehicle brand with Stellantis holding a 20 percent stake. The C10 extended-range EV will hit Stellantis dealerships from September 2025. Stellantis South Africa’s MD Mike Whitfield says South Africa “offers the right combination of infrastructure, consumer demand, and regional connectivity to grow EV adoption.”

LDV Takes on the Bakkie Giants

LDV, part of China’s SAIC Motor, is also making waves with its Terron 9 bakkie, set to debut at the Festival of Motoring at Kyalami late in August. Designed to compete with the Ford Ranger Wildtrak and GWM P500, the Terron 9 is a statement of LDV’s ambition in the premium bakkie market.

Tata Motors’ Strategic Comeback

India’s Tata Motors is returning to the passenger car arena in South Africa. After halting exports in 2017, it’s back with SUVs, crossovers, and hatchbacks through a partnership with Motus Holdings. A launch event on 19 August 2025 will kick things off, including plans for employment and upskilling in service and parts distribution. As Yash Khandelwal from Tata puts it, “South Africa is an important market in our global expansion journey.”

What It Means for South Africa

This surge of activity makes South Africa a clear contender for the title of Africa’s automotive and EV hub. We’ve got infrastructure, a mature dealer network, and rising consumer interest in both everyday and eco vehicles. Analysts already call it the “Silicon Valley of African autos.” For locals, that means more affordable EVs, tougher competition in the bakkie space, and more opportunities in skills and employment.

The Buzz and the Bigger Picture

Car buyers and industry watchers are already paying close attention. Many welcome the arrival of more affordable EVs, while others are eager to see how LDV and Tata will compete with household favourites like Toyota, Ford, and VW. Beyond consumer excitement, the trend signals a strategic shift. With China and India stepping up investment as US tariffs bite, South Africa is carving out a stronger role as a BRICS trade hub.

Also read: Medical Tax Credits in South Africa: What You Can and Can’t Claim in 2025

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Source: Business Insider Africa

Featured Image: Hoover Institution