After more than a decade-long absence, Chinese automaker Geely is set to re-enter the South African market, marking a significant comeback in a sector long dominated by established global brands.
- Geely will re-enter the South African automotive market in October 2025 after a decade-long absence.
- The automaker plans to establish 40 dealerships nationwide, focusing on regions like Gauteng and KwaZulu-Natal.
- Geely’s re-entry aligns with their global expansion strategy, targeting markets like Australia and Brazil.
- This move highlights the challenges faced by the local automotive industry, including intense foreign competition and job concerns.
Chinese automaker Geely is set to re-enter the South African market, more than a decade after pulling out due to economic pressures and strong competition.
The company has secured 35 dealerships nationwide and aims for 40 before launch, with the largest presence in Gauteng, KwaZulu-Natal, and the Western Cape.
Geely is part of Zhejiang Geely Holding Group, one of the world’s biggest carmakers with stakes in Volvo, Polestar, Lotus, Zeekr, and Smart (co-owned with Mercedes-Benz).
On Friday, Transnet, South Africa’s state-owned freight and logistics company, announced that the Durban Car Terminal had offloaded Geely’s first shipment in 14 years.
The MV MOL Cattleya Ace delivered 147 plug-in electric vehicles from China, highlighting the country’s gradual shift toward electric and hybrid cars.
“It’s encouraging to see major international car brands expanding in South Africa,” said Earle Peters, managing executive of Durban Terminals. “Geely’s return is both a milestone and a signal of confidence in our market and infrastructure.”
The comeback is part of Geely’s global expansion, with recent launches in Australia, New Zealand, and Brazil. Locally, its first models will include the Geely EX5, available as both a battery-electric vehicle and a plug-in hybrid.
Geely’s market exit in 2009
Geely shut down its South African operations in early 2009, less than two years after entering the market in June 2007 through a joint venture with local firm TJM Holdings.
Its local importer went into liquidation, with lawyers citing “market forces and a downturn in the new vehicle market” as the main triggers.
At the time, Geely sold budget sedans priced between R74,995 and R113,295 through 29 dealers, but the sharp depreciation of the rand made imports unsustainable.
Associated Motor Holdings (AMH), South Africa’s largest vehicle importer, had been in talks with Geely China to take over the distributorship in late 2008, but abandoned plans due to high costs.
Geely’s Pretoria head office subsequently closed, leaving dealers in limbo. Still, service centers continued operating, relying on a stockpile of spare parts to support about 3,000 Geely owners, even as uncertainty clouded the brand’s long-term prospects.
South Africa’s Auto Market at a Crossroads
Geely’s return comes at a turbulent moment for South Africa’s car industry. Imported vehicles already make up nearly two-thirds of passenger sales, with Chinese brands alone moving more than 52,000 units in 2024.
While this expansion offers consumers more choice, it has intensified pressure on local producers.
BMW South Africa’s CEO, Peter van Binsbergen, has warned of an “existential crisis” for domestic manufacturing as job cuts, shrinking margins, and even plant closures reflect the sector’s fragile state.
Combined Motor Holdings and other industry voices caution that rising imports from China and India could further accelerate job losses, undermining one of the country’s most important industries.
Yet, alongside this strain, a surge of new investment is reshaping the landscape.
Leapmotor, backed by Stellantis, will introduce its C10 extended-range EV this month, highlighting confidence in South Africa’s potential as an electric vehicle hub.
LDV is preparing to launch its new Terron 9 bakkie at the Festival of Motoring, while Tata Motors is re-entering the market through a partnership with Motus Holdings, promising jobs and local value creation.
This juxtaposition highlights an industry at once in crisis and in transition. Long-established players retrench under import pressure, while new entrants, particularly from Asia, see opportunity in South Africa’s large consumer base and strategic position as a gateway to the continent.
The result is a sector caught between contraction and renewal, threatened at home but attracting unprecedented foreign attention.
