Chinese carmaker, BAIC, has its sights on Africa and South Africa, specifically the Eastern Cape, will be the gateway.
BAIC Group celebrated a major milestone on Tuesday at its production facility taking shape in the Coega Special Economic Zone outside Nelson Mandela Bay, announcing the completion of the semi-knocked-down line which will produce the BAIC X25 from Q4 in 2018.
And, as 2018 marks the 20th anniversary of bilateral trade, investment and economic relations between the South and China, cemented further through BRICS, the company is poised to roll out its global strategy.
BAIC said that 60% of the vehicles that will be manufactured at the plant in Coega will be destined “for export markets in Africa the Middle East and Latin America, with the remaining 40% for the South African market”. The company already has 17 dealerships in South Africa and aims to grow that to 27 by year’s end.
BAIC Group chairman, Xu Heyi, said that they have “major expansion plans” and will ultimately be establishing four international headquarters, the first being South Africa and others to follow in Mexico, South-East Asia and India, where BAIC will produce commercial vehicles.
Chairman Xu described the relationship between South Africa and China as one of “golden cooperation” which ensures the realisation of prosperity through BRICS cooperation.
“The BAICA SA project advances both countries and is testimony to this week’s BRICS Summit theme which centres on inclusive growth and shared prosperity in the 4th industrial revolution,” chairman Xu said.
President Cyril Ramaphosa also underlined support for BAIC’s African expansion plans, declaring that “the whole of Africa is now open for you to produce all these vehicles and export them throughout Africa”.
“As we said in the past, South Africa is the gateway into Africa and today you’ve proven that you are up to it,” Ramaphosa said as he shared the moment with Chinese President Xi Jinping via video link with Port Elizabeth.
The BAICSA investment, one of 26 bilateral agreements with a total value of R94bn signed between the two countries in 2015, is the single largest greenfields investment in South African in 40 years and is a joint venture with the Industrial Development Corporation which has a 35% stake.
