Geely Auto Returns to South Africa in October 2025, Boosting Competition Amid Import Concerns
Chinese carmaker Geely Auto is set to make a much-anticipated return to the South African market in October 2025, marking its re-entry after a decade-long absence since exiting in 2014 due to tough economic conditions and fierce competition. The Zhejiang Geely Holding Group, a global automotive giant owning brands like Volvo, Polestar, Lotus, and Zeekr, confirmed the move, with 35 dealerships already signed across the country and plans to reach 40 by launch. This follows trademark filings in 2024 and recent market entries in Australia, New Zealand, Brazil, and the UK, positioning South Africa as part of a broader international expansion. As South Africa celebrates Heritage Day on 24 September 2025, this return highlights growing global interest in the local market, though it adds pressure to an already strained domestic auto industry.
Geely’s comeback, backed by its first African facility in Egypt, promises a mix of petrol and new-energy vehicles, starting with the Geely EX5 in electric and hybrid forms. However, the influx of imports, including from China, has sparked warnings from local manufacturers about job losses, prompting government reviews of subsidies and tariffs.
Geely’s Return: A Strategic Market Re-Entry
Geely first entered South Africa in 2007 but pulled out around 2014, citing economic challenges and competition from established players. Now, with a global footprint spanning 90 countries, the company is staging a comeback, leveraging its diverse portfolio, including a near-10% stake in Mercedes-Benz and co-ownership of Smart. [0]
The return was hinted at through 2024 trademark filings and confirmed with plans to launch alongside major markets. In January 2025, Geely opened a Complete Knock-Down (CKD) facility in Egypt, assembling the Emgrand sedan and Coolray SUV, marking its African entry. [0] For South Africa, sub-brands like Lynk & Co or Zeekr may follow, depending on demand.
Geely’s roadmap includes the Geely EX5—available as a battery-electric vehicle (BEV) and plug-in hybrid (PHEV)—hitting showrooms in October 2025. The company aims to sell 13,000 units in 2026, rising to 15,000 in 2027 and 20,000 in 2028, supported by a network growing to 80 dealerships. Gauteng leads with 14 dealers, followed by KwaZulu-Natal and the Western Cape (6).
Industry Welcome Meets Local Concerns
Earle Peters, managing executive at Transnet National Ports Authority’s Durban Terminals, hailed the move: “It’s encouraging to see major international car brands expanding in South Africa. The return of Geely Motors to South Africa is both a commercial milestone and a signal of confidence in our market and infrastructure.” This reflects optimism about South Africa’s potential as a growing auto market.
However, the influx adds pressure. Imported cars now account for nearly two-thirds of passenger vehicle sales, with 2024 seeing over 52,000 Chinese brand units sold—a sharp rise.Most imports come from India, but China’s share is climbing, challenging local production.
Local Industry Pushback and Government Response
Combined Motor Holdings (CMH), representing brands like Ford and Mazda, warned that without government support, rising imports could cost jobs. BMW Group South Africa CEO Peter van Binsbergen called it an “existential crisis,” noting cheaper imports undercut local plants despite growing sales.
Trade Minister Parks Tau acknowledged the threat, saying subsidies for local vehicles and components are under review to boost local content. Tariffs are also being reconsidered to shield domestic producers from the flood of low-cost imports, a move seen as critical to balancing trade and employment.
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