Chery’s latest move shows how much South Africa’s car market has changed

Chery is putting more resources into Europe, opening a research and development centre in Britain as it continues to grow its business outside China. The centre will open at UTAC Millbrook in Bedfordshire later this year. Chery says its engineers will initially work on chassis, driver-assistance systems and vehicle tuning for British roads, with plans to expand into autonomous driving and AI. For South Africa, the interesting part is not the new British facility itself. It is what Chery is becoming. A few years ago, Chinese carmakers were mostly competing on price. That is still important, but the bigger brands are now building dealer networks, developing vehicles for individual markets and looking at local manufacturing. South Africa is already seeing this shift. Chery, Omoda and Jaecoo have built a sizeable presence here, while BYD, GWM, Haval and other Chinese brands have also expanded their ranges. That is starting to put real pressure on the established brands.

The market has more competition than before

Chinese brands accounted for more than 19% of South Africa’s new passenger and light commercial vehicle sales in the first quarter of 2026. Their sales increased by 75% compared with the same period a year earlier, while traditional brands grew by around 2%. Those numbers do not mean the likes of Toyota, Volkswagen or Ford are suddenly losing their businesses. They still have large dealer networks, local manufacturing operations and customers who have stayed with them for years. But the customer walking into a dealership today has more choices. A buyer looking for an SUV can compare a much wider selection of Chinese models, many of which come with plenty of standard equipment and long warranties. That makes the price comparison harder for established brands.

Chery is building a bigger business overseas

The UK R&D centre is another step in that expansion. Chery will have engineers working in the market where its cars are being sold, rather than developing everything in China and exporting the finished vehicles. The company also plans to explore producing passenger vehicles at Nissan’s Sunderland plant from 2027. Its sales in Britain are growing quickly. Chery’s brands accounted for almost 8% of the UK car market in July, compared with around 3% a year earlier. That matters because it shows the company is not treating overseas sales as a side business. It is putting people and infrastructure closer to the markets it wants to win.

South Africa is already dealing with the same competition

Chinese brands increased their share of South Africa’s passenger vehicle market from 11.2% in 2024 to 16.8% in 2025, according to industry reporting. The result is a much more crowded market. For buyers, that is probably the best part of the story. There are more cars to choose from at different price points, and brands have to work harder to convince customers that their product is worth paying more for. For manufacturers and dealers, it is a different story. They have to compete with companies that are bringing new models into the market quickly and loading them with features that buyers can see immediately. The pressure does not stop at dealerships. South Africa’s automotive industry supports a large network of component manufacturers, engineering companies, logistics businesses and other suppliers. If Chinese manufacturers increase local production, those businesses could have another customer to sell to. But they will also have to compete for the work. Suppliers may need to meet different technical requirements, produce components at competitive prices and adapt to vehicles that use more electronic and electric systems. That could be particularly important for smaller automotive businesses that have depended on a limited number of large manufacturers.

The dealer network is changing too

The growth of Chinese brands is also changing the dealership market. Dealers now have more brands competing for space and customers. Some have added Chinese brands to their portfolios rather than relying only on the traditional manufacturers. Independent workshops and parts businesses are facing a similar adjustment. More brands on South African roads means more parts to stock and more technicians who need to understand different vehicle systems. The UK R&D centre is not going to change the South African market on its own. But it is a useful sign of where Chery is heading. The company is building its engineering capabilities outside China while expanding sales and exploring overseas production. South Africa is already seeing the result of that broader strategy. Chinese brands are no longer a small part of the market. They are competing for the same customers, dealership space and supplier relationships as the brands that have dominated South Africa’s car market for decades. And that is probably the bigger story than Chery opening another office in Britain.