The head of Haval Motors South Africa has revealed the Chinese firm is considering the possibility of producing vehicles locally…

After just 5 years in the local market, Haval is easily the most successful Chinese automotive brand in South Africa. So, what’s next for the fast-growing firm? Well, the company’s boss – who oversees Haval and GWM operations in SA – says it would be a “wasted opportunity” not to pursue the possibility of local production.

Conrad Groenewald, Chief Operations Officer of Haval Motors South Africa, made the comments when speaking to Cars.co.za video journalist, Ciro De Siena, in an exclusive interview.

Watch the full interview with Haval Motors SA’s COO here

“If you look at the government policies in the automotive [sector] in South Africa, I think it’s a wasted opportunity not to pursue it,” Groenewald said, when asked whether GWM and Haval products could one day be produced on local soil.

“It is something that we’re engaging with the stakeholders at the moment to look at the possibilities of producing locally in South Africa. When that will happen, I can’t tell you at this point in time,” added Groenewald, who has been in the role since July 2022.

Currently, 7 major automakers run full manufacturing plants in South Africa: BMW, Ford, Isuzu, Mercedes-Benz, Nissan, Toyota and Volkswagen. Indian brand Mahindra, meanwhile, has an assembly facility in KwaZulu-Natal and Chinese firm BAIC one in the Eastern Cape.

Though GWM’s main manufacturing plants are in China, it has a number of KD assembly facilities around the world.

Groenewald, who was with Ford for nearly 20 years (including a 3-year stint in China and, more recently, almost 5 years as director of sales operations at Ford Motor Company of Southern Africa), admits setting up manufacturing facilities locally would require a “big investment”, but appears hopeful the idea will come to fruition.

“It does take a lot of time to get that done, but it is something that we’re not blind to. It is an opportunity that we’re looking at pursuing and hopefully we can capitalise in a way that the other OEMs [original equipment manufacturers] are doing with export business into other markets.

“I think as GWM Global is growing their footprint outside China, the South African market and our manufacturing capabilities in South Africa can play a greater part in their global strategy,” he added.

In addition to its several full-scale manufacturing plants in China (and latterly Thailand), GWM also owns KD factories (which assemble vehicles using “knocked-down” kits) in countries such as Ecuador, Malaysia, Pakistan, Tunisia and Bulgaria.

Haval Motors SA’s sales performance in 2022

Regardless of whether or not local production becomes a reality, Haval Motors SA has lofty ambitions in terms of its sales volumes in South Africa. In 2022, the Chinese group posted total local sales of 22 644 units, an improvement of 18.79% compared with 2021. It thus climbed a place to 9th overall, while also pushing its market share from 4.10% to 4.28%.

“To be blatantly honest, we would like to be in the top 5 brands in South Africa in the not-too-distant future. We’re going to work towards that road presence and then a national sales company that can represent the expectations of customers of what they can see or want to see from a top-5 player in South Africa,” Groenewald concluded.

As a reminder, Haval Motors SA was founded as a wholly owned subsidiary of the Chinese group in 2017, replacing GWM South Africa (which had instead acted as a local distributor).

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