- Chinese brands’ low-priced new models are collapsing used-car resale values across Africa, notably South Africa (market share rose from 14.8% to 20%).
- XPeng, BYD, and SANY expansions and partnerships are boosting EV adoption but remain constrained by financing and charging infrastructure.
- Building local assembly, battery-swapping networks, financing, and technician training is essential to capture value and avoid dependence on Chinese systems.
The WesBank and FNB South Africa Teams when they handed over 14 SANY electric trucks to Bakers Transport. Photo / WesBank
This is a free preview of the upcoming Africa EVs Weekly Digest, part of the new CGSP Intelligence service.
We start out this week with news that Chinese brands are disrupting South Africa’s auto resale market. New, lower-priced models, including electric vehicles (EVs), hybrids and internal combustion engine (ICE) vehicles, are putting pressure on used-vehicle values with Chinese brands increasing their share of national new-vehicle sales from 14.8% to 20%.
This is worth watching because, beyond South Africa, many African countries are mainly second-hand vehicle markets, where they are often sold at or near the price of new Chinese models. In Kenya, for instance, a 7-year-old Toyota RAV4 costs the same as, or slightly more than, a new Jetour Dashing.
In South Africa, the phenomenon isn’t unique to Chinese-made cars, as other Asian brands are contributing to the disruption. But the rapid rise of Chinese brands is central to the story. The impact on South Africa’s used-car market may signal broader trends to come for car markets across Africa and beyond.
But resale-value concerns in South Africa could be driven more by not understanding why Chinese vehicles are getting cheaper than used cars as well as stereotypes that could be playing out in Africa’s most sophisticated vehicle market.
Could people be assuming cheap means low quality?
If so, that assumption could mirror the late 1990s to early 2000s, when China rapidly scaled up, became the “world’s factory” with low production costs and unrefined manufacturing processes, and developed a reputation for cheap, disposable goods.
To understand where the stereotype originated, Gang (Kevin) Han, an associate professor in Iowa State University’s Greenlee School of Journalism and Communication, notes that people enjoyed Chinese products they regarded as unique, as well as the cultural value attached to them.
This was until China became a world factory and “produced so many items for so many brands, people changed their views.” The shift, Han adds, reflects a combination of media coverage related to Chinese-made products, consumer experience and influence.
And this leads me to ask if this could be the same case with Chinese vehicles, given how stereotypes shape perception. If so, and I am not endorsing Chinese vehicles here, then the thinking could be more than a decade behind. We will find out soon if we have not already.
With this context, dealers in Africa’s second-hand vehicle market may soon be looking for an off-ramp. A seven-year-old car that is more expensive than a zero-mileage new one is a hard sell.
Overseas in Mexico, China’s EV technology bundled into “shockingly low prices” is also experiencing the same challenges as in South Africa which could be leading buyers back to legacy brands due to their reputation for reliability.
This week in the Chinese EV scene:
XPeng Signs Dealer Partnerships in Nigeria, Launches in 3 Other African Countries
Chinese premium automaker Xpeng has signed distribution agreements with local partners in Nigeria and launched in Morocco, Tunisia, and Mauritius, with the island nation becoming XPeng’s first right-hand-drive market in the region.
Why This Matters: XPeng’s expansion increases the variety of Chinese vehicles in the African market, which could also drive better quality, fairer prices, and stronger charging systems and networks as brands compete for market share.
Bolt, BYD Partner With Taxi Association to Deploy EVs in Johannesburg
Ride-hailing platform Bolt has partnered with Chinese automaker BYD and South Africa’s SAMTEA to deploy electric cars to promote cleaner transport and potentially reduce drivers’ operating costs in Johannesburg. The rollout strengthens BYD’s position in South Africa’s EV market, with Bolt targeting 500 EVs nationwide by December 2026.
Why This Matters: This partnership tests whether fleet-based business models can overcome high vehicle prices and make EV technology commerciallyemain constraints. In such a market, a model that would make it easier to own an electric vehicle could help accelerate the transition to EVs with an expanded vehicle offering which will help make them common on the roads improving brand recognition and acceptance by buyers
Spiro Launches 100 Electric Motorcycles, Battery-Swapping Solution on Ghana Entry
Spiro, which uses some Chinese components in its vehicles, has entered Ghana with its first 100 Ekon 450 M1 V3 electric motorcycles. As a new entrant in the market, it will be interesting to see how electric motorcycle dynamics change around battery swapping, costs and battery range.
Why This Matters: For Spiro, rider satisfaction will mostly be determined by not having long wait times to swap their battery, which is about 60 seconds to two minutes on average in Ghana as well as always having access to fully charged batteries when needed. Since EVs make money when they are on the move, any wait that is longer than 2 minutes could eat into a rider’s earnings and potential savings in a day.
South Africa’s Logistics Company Receives 14 Chinese-Made SANY EV Trucks
WesBank and FNB South Africa, divisions of the FirstRand Group, have financed 14 Chinese-made SANY electric trucks for Bakers Transport company. The deployment combines Chinese vehicle technology with South African logistics expertise, fleet financing, renewable energy, and charging infrastructure.
Why This Matters: Commercial EV adoption is gathering pace, even though it still depends heavily on financing and charging infrastructure as much as vehicle availability. This latest deployment in South Africa shows how partnerships can roll out EV technology at scale by making financing easier.
Chinese EV maker TankVolt plans to introduce electric three-wheelers (Tuktuks) in Kenya to meet growing demand for lower-cost commercial transport. Although EV three-wheelers can cost up to three times as much as their gasoline-powered equivalents, rising fuel prices are pushing more people into e-mobility to cut fuel-related costs.
Why This Matters: Electric three-wheelers offer a path to electrifying commercial transport, where lower running costs are driving purchasing decisions more than environmental concerns. For Kenya and other oil-importing countries, the pace of adoption will depend on whether battery-swapping networks, financing, and falling vehicle prices can make the technology not only more affordable but also reliable.
Tanzania Leveraging Chinese Tech to Build Local Vehicle Industry
Tanzania is quietly building its vehicle sector and as this industry insider notes, the East African nation aims to become a regional automotive assembly hub by 2030, attracting foreign investment in conventional vehicles and EVs, including electric motorcycles, three-wheelers, and utility vehicles. Chinese companies such as BYD and FAW are part of the expansion, alongside local assembly initiatives and technician training.
Why This Matters: Tanzania has some catalysts for its ambition to materialize, including a strategic coastline, regional trade rights, foreign partners from China, India and the Gulf, and a government that has made vehicles a priority but this is all dependent on the country succeeding in deepening local supply chains, training its workforce at scale and keeping its promises to investors.
Chinese Electric Two- and Three-Wheeler Manufacturers Gather in Morocco
The Africa EV Mobility Expo Morocco is underway in Casablanca, bringing together manufacturers, distributors, fleet operators and investors across electric two-wheelers, three-wheelers, batteries and charging systems. Chinese participants include Yadea, TAILG, AIMA, SAIGE, DECE, and YINXIANG MOTORCYCLE.
Why This Matters: Chinese manufacturers’ participation in Morocco suggests that domestic competition is pushing many brands to expand overseas. Most brands at the exhibition are largely unknown in Africa, but their presence also shows that local manufacturers and innovators will have to contend with Chinese brands for a share of the continent’s EV market.
Chinese automakers supplied nearly 99 percent of Thailand’s total electric passenger car imports in September as imports surged, driven by buyers and automakers moving ahead of a proposed tax increase. The government is considering a tiered excise tax that would favor locally assembled EVs and vehicles with greater domestic content over fully imported models.
Why This Matters: Chinese imports into Thailand show how rapidly growing sales can coexist with limited domestic value capture if manufacturing remains offshore. Several Global South countries face the same limitations, where continuing tax incentives prolong value extraction from these economies instead of building them. These countries should consider implementing investment agreements that build local supply chains, technical capacity, and jobs, rather than treating assembly alone as industrial development.
Mexico: China’s EV Technology Bundled Into “Shockingly Low Prices”
Chinese automakers, led by BYD and Zeekr, are bringing affordable, technology-rich EVs to Mexico while U.S. tariffs and restrictions keep many of these models out of the U.S. market. The vehicles expose a widening gap between China’s ability to produce competitively priced EVs and the limited affordable electric options available to U.S. consumers and those next door, like in Mexico.
Why This Matters: As in South Africa, aggressive new-car discounts and price cuts forced used model values down significantly. Still, legacy brands in Mexico typically lose 15% to 25% of their value in the first year and retain 65% to 70% after three years. In contrast, some Chinese-branded SUVs and passenger cars experience steep drops, losing up to 40% to 50% or more of their original value within their first few years. Mexico’s case illustrates how Chinese EVs can expand access to electric mobility by lowering purchase costs and reducing operating expenses, while also highlighting the dilemma of affordable Chinese technology which depreciates faster than legacy competition.
BYD Seeks to Double Brazilian Factory Capacity to 600,000 Vehicles Annually
China’s BYD is seeking approval to double annual production capacity at its Brazilian plant to 600,000 vehicles as it expands local manufacturing and responds to demand exceeding current output. The automaker aims toving the way for exports to markets including Argentina and Mexico
Why This Matters: BYD’s Brazil expansion shows how Chinese automakers can use local production and regional supply chains to reach more markets, potentially reducing import dependence and widening access to EVs. The challenge, however, remains securing comparable local investment to enable local assembly, component manufacturing, and technical skills, which would reduce reliance on imported Chinese vehicle components and expertise.
While battery swapping could make EVs more practical across the Global South by cutting downtime, reducing fuel expenses, and allowing riders to pay for battery access rather than shoulder the full cost of ownership, the savings depend on affordable, reliable swapping networks and a steady supply of compatible batteries. The bigger opportunity lies in building local businesses around battery leasing, swapping stations, maintenance, software, and component production; otherwise, EV companies risk becoming dependent on Chinese technology and proprietary systems.
With localized systems, companies gain more control not only over assembly and job creation but also over the value that stays local. This could strengthen domestic industries and spur innovation beyond bolting together imported components.
