In stark contrast, exports surged 88.2% to 923,000 vehicles in the same month . In the first half of 2026, domestic sales dropped 20.2% while car exports rose 70.6% to 4.28 million
. With the domestic market contracting, Chinese automakers have been forced to push aggressively into overseas markets
.
At the same time, Western tariff barriers are rising — including planned tariffs of up to 50% on Chinese EVs in some markets — making direct exports less viable and incentivizing local production in Africa instead .
The flagship example of this pivot is Chery's takeover of Nissan's former assembly plant in Rosslyn, Pretoria, South Africa. This deal is the most significant single factory investment by a Chinese automaker on the continent.
Chery Chairman Yin Tongyue said to Xinhua that "localization is key to sustainable overseas growth," emphasizing deeper integration into local economic development .
Chinese automakers are employing a range of localization strategies across the continent, moving beyond simple exports to full factory acquisitions, CKD/SKD (Completely Knocked Down/Semi Knocked Down) kit assembly, and plant partnerships .
Several African governments have enacted policies that create a favorable environment for Chinese EV and hybrid factories.
Ethiopia — Fossil Fuel Vehicle Ban: In January 2024, Ethiopia became the world's first country to ban the import of fossil fuel-powered vehicles, while simultaneously slashing tariffs on EV imports . This dramatic policy was driven by fiscal necessity — the government wanted to stop spending foreign reserves on fuel subsidies . The results have been profound: Ethiopia imported 44,358 EVs from China in 2025 alone
. New EVs are now price-competitive with secondhand gasoline cars, and EV adoption has grown from less than 1% to nearly 6% of all vehicles on the road . The government is also building charging stations every 50 km and targeting 500,000 EVs by 2030
.
South Africa — Local Production Incentives: South Africa's Automotive Masterplan 2035 offers incentive programs that provide rebates for vehicles manufactured domestically, directly encouraging Chinese firms to build local plants . The country also aims to enhance domestic vehicle production and local content
.
Planned Tariffs on Chinese Vehicle Imports: In a push-and-pull dynamic, South Africa is reportedly considering tariffs of up to 50% on imported Chinese vehicles. This would serve as a further incentive for Chery and others to assemble locally and bypass these costs .
The shift from importing Chinese cars to building Chinese factories in Africa has significant downstream benefits for African consumers.