Business

Chinese car giants power into Botswana

On the rise: Chinese manufactured vehicles are taking up more market space in Botswana and the world PIC: MADEINCHINA.COM
 
On the rise: Chinese manufactured vehicles are taking up more market space in Botswana and the world PIC: MADEINCHINA.COM

Available data shows that consumers consider price as the main determining factor when buying a car and Chinese models have, over the years, grown better at also integrating competitive pricing with advanced technology and comfort.

Local consumers are shifting their car preference to Chinese models such as Omoda, Haval, and Jetour, which are increasing their sales to the local market as first-hand vehicle sales. Local consumers seeking comfort and engine performance have for many years preferred German makes, whilst those seeking durability leaned to Toyota.

However, the entrance of the Chinese machines has created a splash in the local market.

Louis Erasmus, sales manager at Motor Holdings Botswana, which is the country’s sole licensed dealership for Haval, told BusinessWeek that they have noted growing demand for models made in China, such as Haval and Omoda.

He said sales numbers of these makes are increasingly growing beyond what dealerships selling German vehicles make on a month-to-month basis, when government purchases are excluded.

Erasmus disclosed that more and more consumers are leaning towards these models due to their comfort, appealing exterior design, and affordable price points compared to buying a German Mercedes or BMW brand.

“The Asian makes have, over the years, been getting better in terms of design, comfort, and really the integration of tech to automate some functions of driving,” he said. “The prices are quite affordable as well compared to buying a German make for the first time.”

Erasmus said in general, however, dealerships were having a tough time selling cars in the current state of the economy, with many hard hit by constrained government expenditure, which has resulted in lower than expected sales.

He said only the garages selling grey imports are presently able to keep the revenues spinning, as they deal with the cheaper, more affordable vehicles.

The trend of consumer preference for Chinese makes is global, with Chinese e-vehicle giant BYD, overtaking Tesla as the world's largest seller of Battery-Electric Vehicles (BEV) for the full year 2025. BYD sold over 2.25 million EVs compared to Tesla's 1.64 million, marking Tesla's second straight year of declining deliveries amidst rising competition and expiring US tax credits.

Local data shows that in terms of used vehicles, manufacturers such as Honda and Mazda have grown in terms of consumer preference.

Latest transport and infrastructure data from Statistics Botswana shows that in 2024, the country registered 47,175 cars, of which close to 31,000 were from Japan, mostly sold as used cars or second-hand cars.

The data shows 83% of cars bought by Batswana were Japanese makes, with consumers preferring them due to their affordability and design comfort features that do not have a wide gap with their German counterparts.

“Motor vehicles registered for the first time in 2024 were 47,175, an increase of 21.2% compared to 38,912 vehicles in 2023. Used vehicles dominated vehicles registered for the first time at 78%, and 83.8% of them originated from Japan,” the report showed.