‘Good benchmark for China’: Plans for Gqeberha plant in top gear, says automotive boss

With the Beijing Automotive Industry Cooperation (BAIC) gearing up for the grand launch next year of its new BJ30 SUV in South Africa, company vice-president and chair of BAIC Automotive SA Propriety Limited Wang Jianhui is confident about plans for its Gqeberha plant coming into fruition.

These, said Wang, yesterday would lead to a full capacity vehicle production, serving as a market channel to reach a wider African market – “a good benchmark for China’s the Belt and Road initiative and the SA cooperation”.

Asked about what led to delays in the plant working optimally, Wang cited the impact of the Covid outbreak, “challenges presented by the global economy and political issues”.

‘Promote employment and contribute to SA’s fiscus’

“If we can realise the localisation in the South African market, we can promote employment and contribute to the South African fiscus through taxation,” said Wang.

Asked whether the African vehicle market had preference design requirements to enhance growth, Wang said: “Guided by the analysis of the African market, we see a potential development in terms of the continent’s population of about 1.5 billion people.

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“We currently have a total market reservation of 40 million vehicles in Africa, something which has created a gap for BAIC to go on a developmental drive.

“Our business expansion into Africa will depend on our success in South Africa – an avenue to reach the rest of the continent.”

The company was “looking at vehicles that can withstand driving through off-road conditions on the African continent”.

Vehicles built at Gqeberha plant give customers advantage

“These are vehicles that will give customers an advantage on use. We are building vehicles in line with global conditions and standards,” he said.

“We do feasibility studies and research before coming up with a suitable product, to satisfy customer needs in the market.

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“We do modifications in line with the needs of each particular market.

“In the South African situation, we have finished working on plans, having finished the required screening processes.

“We have the analysis of the South African and broader African market, with both having a potential to enlarge our overseas expansion plan.

‘Normal production plans in place for Gqeberha’

“We are confident about our objectives.

“Normal production plans are in place for Gqeberha.”

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Commenting on today’s threeday Forum for China-Africa Cooperation summit, fuelling further investments into SA, Wang said: “China and South Africa relations have entered a golden age under the strategic guidance of Chinese President Xi Jinping and his South African counterpart, President Cyril Ramaphosa.”

“More than 200 Chinese companies based in South Africa, have become the backbone of driving economic growth in both countries.

“Among drivers of a potential for economic growth, is the BAIC SA plan, in response to China’s Belt and Road Initiative – also informed by South Africa’s plan for the automotive industry growth.

China-Africa shared future

“A China-Africa community with a shared future, will certainly open a new chapter for the future,” he said.

“With BAIC’s internationalisation strategy and its brand vision in place – overseas expansion and an increase in support for the BAIC SA project, the spinoffs are enormous for both countries.”

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The BAIC Group is the flagship of the Chinese automotive industry, established in 1958, specialising in combustion, hybrid and electric vehicles.

Its electric vehicles have been lauded as an answer to pollution and climate change.

“BAIC attributes annual profit increase of 147% year-by-year, with our sales last month having recorded over 100%, to international expansion.

Brands in 50 countries

“Our electric and fuel-operating vehicle brands, sit in 50 countries,” he said.

Ranked 193 on the Fortune Global 500, BAIC produces company vehicles, components and passenger vehicles, which include joint venture brands such as Beijing Benz, Fujian Benz, Beijing Hyundai and Foton Daimler, with automotive cumulative sales volume having exceeded 31 million units – reaching 110 countries and regions globally.

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