Chinese vehicle flood into SA continues

“Details of the models we will market in South Africa are still being finalised, but we are delighted to have signed an agreement with such a significant Chinese motor manufacturer,” said Jolyon Nash, McCarthy's executive director responsible for the company's import and distribution division.

Chery is currently the fourth ranked Chinese motor company in terms of passenger car production, and total output has already passed the one million unit mark.

“The launch of Chery passenger cars in South Africa is scheduled for the second quarter of this year,” said Yin Tongyao, the chairman and general manager of Chery Automobile. “We are very pleased that Chery will soon be a player in a market that accounts for 60% of vehicle sales in Africa and, as such, would provide a springboard for sales of our products into other African countries.”

Nash said that McCarthy already has an established national dealer network in place, namely their McCarthy Value Centres, which will be used to sell and service the Chery products. “We are also in the process of appointing a number of additional independent franchise dealers across the country,” said Nash.

Chery was established in 1997 with backing from five regional, state-owned investment companies, and in 2006 sold over 300,000 vehicles, an increase of 62% on their 2005 results. It employs more than 20,000 people and currently has an annual production capacity of 400,000 built up vehicles, 400,000 engines and 300,000 gearboxes.

As China's top car exporter for the past five years, Chery had exported 114,718 cars worldwide by the end of November last year. Chery-branded vehicles are already exported to more than 50 countries worldwide.

Chery has signed contracts with a number of major international motor companies which will see it supply more than 100,000 1,6- and 1,8-litre engines to Fiat, for use in cars assembled in China and in other world markets. It is also involved in the joint development of small and sub-compact cars with the Chrysler Group, intended for sale from 2009 in North America, Europe and other major markets under Chrysler brand names.

McCarthy Limited, one of the largest vehicle distributors in South Africa, employs almost 8,000 people. It has a history that goes back 97 years and it represents 30 world-renowned vehicle brands, selling these vehicles through 130 dealerships. Total vehicle sales by McCarthy in 2007 amounted to 89,000 units.

“We are most excited about the Chery distribution rights, and are confident that these high quality, attractive, and very affordable vehicles will find wide acceptance in the South African market,” concluded Nash.