Chinese carmaker BAIC is set to expand its vehicle assembly facility in Gqeberha, Eastern Cape
Image: Wu Peng/X
Chinese carmaker BAIC is planning to expand its vehicle assembly facility in Gqeberha, Eastern Cape, according to the Chinese Ambassador to South Africa, Wu Peng.
BAIC South Africa was established in 2016 as a joint venture between Beijing-based BAIC Group and the Industrial Development Corporation (IDC). Under the agreement, BAIC holds a 65% stake, with the IDC owning the remaining 35%.
Located within the Coega Special Economic Zone, the assembly plant was initially hailed as one of the most significant investments in South Africa’s automotive sector.
The facility includes a vehicle assembly line, press shop, paint shop, body shop, administrative offices, and a neighbouring supplier park that houses small and medium-sized local component manufacturers to support production.
However, the plant has struggled to meet expectations. Media reports last year revealed that since its inception, the facility had assembled only 300 vehicles far below the original target of 40,000 to 50,000 units per annum.
The company reportedly cited several contributing factors, including the impact of the COVID-19 pandemic and labour disputes with local SMMEs, which led to repeated production stoppages.
In a recent post on X (formerly Twitter), Ambassador Wu stated that BAIC’s Chairman had informed him of the company’s intention to expand the Eastern Cape plant despite US-imposed tariffs.
"I visited BAIC's headquarters in Beijing, where the Chairman told me that BAIC plans to expand its plant in Port Elizabeth (Gqeberha) despite the impact of unreasonable US tariffs, firmly supporting globalization and contributing to local industrialization in South Africa," Peng said.
IOL Motoring
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