Chery rolls into South Africa, mulling local assembly units

China's Chery Automobile has launched the cheapest car in South Africa and joins a growing number of Chinese automakers in considering whether to set up assembly operations in this growing market.

The Chery QQ, a minicompact that is a near-clone of the Chevrolet Spark and Daewoo Matiz, will be priced from $7,900 for the basic 800cc model, according to South African distributor McCarthy Motor Holdings. In its home market, the QQ starts at less than $4,000.

McCarthy is also importing the J5 sedan and the Tiggo crossover vehicle. Prices on the J5 start at $18,400 and on the Tiggo at $21,100.

In South Africa, the largest auto market on the African continent, the QQ will compete with another Chinese minicar, the Changan Benben, which is rebadged Chana Benni and priced from $10,300.

Both Changan and a third Chinese automaker, Geely, have said they are considering vehicle assembly in South Africa.

Changan, which is partnered in China with Ford and Suzuki, says South Africa is its largest export market outside China, and it expects to sell 20,000 vehicles a year in that country.

Chery has been one of China's largest vehicle exporters and currently has local kit assembly operations in Russia, Ukraine, Uruguay, Egypt, Iran and Indonesia.

Like many of its Chinese competitors, Chery sees South Africa as a springboard into other African markets.