Chery’s QQ sold more than 300 vehicles in Ethiopia this year, and its price is almost double that of China. China's Gold Cup Sea Lion light vehicle sales in Nigeria and other countries are also very good.
In the sunny Ethiopian capital Addis Ababa, several green Chery QQs are parked side by side under the shade of trees. Not far behind the car, there are two yellow Chery QQ. The appearance of Chery QQ is just a microcosm of Chinese cars entering the African continent. In many countries in Africa, cars produced in China have long traveled in the streets.
At present, automobiles and their parts and components are increasingly becoming China's important commodities for export to Africa. The expanding African market shares of Chery, Geely, Brilliance and JMC have not only brought China closer to Africa, but also allowed Chinese auto companies to see another market to be developed. People in the industry believe that China's autos “walk into Africa†is a general trend because China not only has skilled industrial workers, but also has a team of highly qualified mechanical engineers. This has created favorable conditions for Chinese auto exports to Africa.
Chery is a representative of the family car. According to Chery’s agent EGB in Ethiopia, Chery’s QQ has sold more than 300 vehicles since March this year, and its price is almost twice that of the domestic market. Due to the increasing interest of local people in buying cars, EBG is very optimistic about the market prospects of Chery's sedan in Ethiopia.
In addition, commercial vehicles produced in China also have a large market in Africa. China's Gold Cup Sea Lion light vehicle sales in Nigeria and Ethiopia are also very good. At present, the African light commercial vehicle market is dominated by Japan's Toyota, Nissan and Mazda, while the truck market is dominated by Sterling, Mercedes-Benz and Volvo. However, the price of commercial vehicles in China is only half or even one-third that of similar products in Europe and the United States, and it can meet the needs of the low-end markets in Africa.
At present, many countries in Africa are encouraging the development of the automotive industry and increasing the investment in the automotive industry. According to reports, while China's domestic automobile manufacturers are stepping up exports, they are actively seeking cooperation with African countries to set up overseas assembly plants. China's Liberation and Dongfeng trucks have entered the African market as early as the 1990s. At present, there are several Chinese truck assembly plants in countries such as Tanzania and Uganda.
In Africa, the service life of automobiles is often short because of poor road conditions, fewer vehicle maintenance outlets, and expensive components. Therefore, there are promising futures for the sale of auto repair and accessories sales in Africa. As long as the location is selected, reasonable prices and excellent services are available, the profits will certainly be substantial.
According to reports, in countries such as South Africa, Egypt, Algeria, and Botswana, where the number of automobiles is relatively high, the auto repair and accessories market is almost monopolized by South Korea, Japan, Malaysia, Germany, and France. It is more difficult for China to participate in the local market. However, in some of the least developed African countries, such as Tanzania, Zambia, Angola, Ethiopia and Uganda, it is relatively easy to open up markets.
Industry insiders believe that Chinese auto makers should maximize their price advantage when they enter the African market for the first time, obtain market recognition, and widely publicize through advertising media such as newspapers, radio, television, and street signs to reinforce consumer impressions. Given the low purchasing power of African countries, Chinese auto makers should adopt flexible and diverse sales strategies and attract customers with payment methods such as installment payments and government contracts.
When developing auto repair and accessories markets in Africa, local people should be hired as much as possible. With the exception of a few Chinese managers, salespeople and after-sales service personnel are better off looking for locally. Local employees understand the country's folk customs and markets, facilitate communication with customers, and can become a powerful helper for Chinese cars entering the African market.
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