BYD to nearly triple its South African dealer network by next year
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Chinese electric vehicle (EV) giant BYD plans to nearly triple its dealership network in South Africa by next year as it looks to grow its market share in the country, a senior executive told Reuters.
BYD's move comes while competition in Africa's largest automotive market is growing, where sales of new energy vehicles are rising and other Chinese companies — such as GAC, Chery and GWM — are also making inroads.
Launched in 2023 with its BYD battery electric ATTO 3 vehicle, the carmaker has about 13 dealerships.
“By the end of the year we will have about 20 dealerships around the country. The aim is to expand that to about 30, 35 the next year,” Steve Chang, GM of BYD Auto South Africa told Reuters in an interview on Wednesday.
BYD offers six models in the South African market, with its plug-in hybrid Shark pickup, hybrid SEALION 6 and pure electric SEALION 7 SUV models launched in April, completing its hybrid and electric dual-powertrain strategy.
The dealership expansion will help BYD become a known brand and capture more buyers in a country slowly transitioning to EVs.
In 2024 sales of new energy vehicles (NEVs) — a term that describes battery-powered fully electric vehicles and plug-in hybrid cars — rose to 15,611 units from 7,782 units in 2023, according to data from automotive industry body Naamsa.
While the share of NEVs to total car sales is still low, BYD is hoping to capture the market early on, in preparation for a meaningful transition, Chang said.
“We want to educate and cultivate the market of South Africa and make sure South African consumers can catch up with the rest of the world.”
The uptake of EVs and investment in Africa is slow relative to emerging market peers due to limited charging infrastructure, unstable power supply and high import duties compared with fossil-fuelled cars. But BYD sees potential.
“South Africa is one of the most important automotive markets in the southern hemisphere. It's probably the biggest market in Africa, so it's a market we have to look at and see how we can develop the market,” Chang said.