Chinese EV makers move factories to Africa as global trade shifts

Chinese automakers are shifting from exporting cars to Africa to building them on the continent, betting on rapid urbanisation and a growing middle class. The Associated Press reports that analysts see South Africa, Morocco, Kenya, Ethiopia and Ghana as among the countries best positioned to attract Chinese EV investment, and that Chery, China's largest auto exporter, has acquired Nissan's former Rosslyn plant near Pretoria to build electric vehicles and hybrids.

The pivot is being driven by economics on both ends: Chinese factories are producing more vehicles than the domestic market can absorb, while exports face mounting trade barriers in Europe and North America. Analysts told AP that building locally helps manufacturers navigate tariffs, puts them closer to fast-growing markets, and could eventually lower vehicle prices while spurring investment in charging infrastructure and battery production.

African governments are courting the shift in different ways. Ethiopia has banned imports of fossil-fuel-powered vehicles and offers lower duties on electric cars assembled domestically, while South Africa is using production incentives such as customs duty rebates and tax breaks, according to the report. An African Union strategy to increase domestic processing of critical minerals could keep more of the supply chain on the continent.