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China’s BYD to Nearly Triple Dealership Network in South Africa by 2026

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Chinese electric vehicle (EV) manufacturer BYD plans to significantly expand its presence in South Africa, aiming to nearly triple its dealership network by next year as it pushes to grow its market share in Africa’s largest automotive market. The company currently operates about 13 dealerships in the country.

Steve Chang, General Manager of BYD Auto South Africa, told Reuters that BYD expects to increase its dealerships to around 20 by the end of 2025 and further expand to between 30 and 35 locations by the end of 2026. This expansion supports BYD’s goal of becoming a well-known brand across South Africa amid a growing interest in new energy vehicles (NEVs).

BYD launched in South Africa in 2023 with its all-electric ATTO 3 model. It now offers six models locally, including the plug-in hybrid Shark pickup, hybrid SEALION 6, and all-electric SEALION 7 SUVs introduced in April, reflecting its strategy to offer both hybrid and electric powertrains.

Sales of NEVs in South Africa nearly doubled in 2024, reaching 15,611 units compared to 7,782 units in 2023, according to the National Association of Automobile Manufacturers of South Africa (NAAMSA). Despite the low overall share of NEVs, BYD is focused on capturing early market share as the country gradually transitions toward electrified transportation.

Chang emphasized the importance of educating consumers about EVs to align South Africa with global trends. However, challenges remain, including limited charging infrastructure, unstable power supply, and relatively high import duties on EVs compared to conventional vehicles.

BYD views South Africa as a critical market in the southern hemisphere and the largest in Africa. The company’s planned expansion aims to tap into this potential and accelerate EV adoption on the continent.

BYD Contractor Denies Brazilian Authorities’ ‘Slavery-Like Conditions’ Claims

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Jinjiang Group, a contractor for Chinese electric vehicle maker BYD, rejected accusations from Brazilian authorities that 163 Chinese nationals working on a construction site in Bahia state were subjected to “slavery-like conditions.” In a statement on Thursday, Jinjiang argued that the allegations were based on misunderstandings stemming from cultural differences and translation errors.

Brazilian labor authorities had reported finding workers in exploitative conditions at a site for a BYD-owned factory. In response, BYD stated it had severed ties with the firm responsible for hiring the workers and was cooperating with authorities.

Jinjiang defended its practices, stating, “Being unjustly labeled as ‘enslaved’ has insulted the dignity and human rights of our employees and hurt the pride of the Chinese people.” The company also claimed the questioning by Brazilian inspectors was “suggestive” and shared a video of workers disputing the claims.

In the video, workers clarified that 107 individuals had voluntarily handed over their passports to the company for assistance in obtaining temporary ID certificates, countering Brazilian authorities’ assertion that their documents were withheld. A worker in the video expressed satisfaction with their work conditions and highlighted their commitment to the completion of the factory, which is expected to begin production in late 2024 or early 2025.

BYD has positioned Brazil as a key market, with the factory aiming to produce 150,000 cars annually. However, the incident adds strain to China-Brazil relations, as China’s foreign ministry confirmed that its embassy in Brazil is in communication with local counterparts to address the matter.

BYD’s General Manager of Branding, Li Yunfei, accused “foreign forces” and some media outlets of attempting to tarnish Chinese brands and undermine ties between China and Brazil. The controversy also arises as Brazil plans to raise tariffs on imported electric vehicles from 18% to 35% by July 2026, further underscoring the importance of domestic production.

Jinjiang reiterated its commitment to compliance, stating that cultural misunderstandings had been at the root of the controversy and affirming its intention to support the success of Brazil’s largest new energy vehicle project.

 

Nio Targets Expansion of Battery Chargers and Swap Stations Across All Chinese Counties by 2025

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Chinese electric vehicle manufacturer Nio has announced plans to significantly expand its charging and battery swap infrastructure, aiming to install battery charging stations in each of China’s 2,844 counties by June 2025. The company, a leader in the country’s electric vehicle sector, further disclosed its intentions to establish battery swap stations in more than 2,300 counties by the same timeline, with efforts to reach the remaining counties by 2026.

This large-scale expansion is a part of Nio’s broader strategy to address consumer concerns regarding range anxiety, a key hurdle for the widespread adoption of electric vehicles (EVs). Battery charging and swap stations are considered crucial in less developed areas where such infrastructure is sparse. Nio’s innovative battery swap technology allows drivers of compatible vehicles to exchange depleted batteries for fully charged ones in about three minutes, drastically reducing the time spent waiting at conventional charging stations.

Nio’s current infrastructure already includes over 23,000 charging stations and more than 2,480 battery swap stations as of August 2023. The company claims to have completed over 51 million battery swaps, with more than half of the electricity used by Nio vehicles in July derived from these swaps. The expansion of Nio’s infrastructure is not limited to its vehicles, as more than 200 other car brands are reportedly able to use the company’s charging stations. Over 80% of the electricity provided by Nio’s chargers is used by non-Nio vehicles, showcasing the brand’s contributions to China’s growing EV ecosystem.

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This expansion effort aligns with China’s national agenda to bolster the electric vehicle market, as outlined in its latest five-year plan that commenced in 2021. The plan includes goals for a nationwide fast-charging network, with particular emphasis on ensuring that at least 60% of highway service areas are equipped with such stations. The Chinese government has shown considerable support for the electric vehicle industry, including the development of EV charging infrastructure. In 2023, China reported a 65% increase in the number of charging stations, totaling 8.6 million. This translates to a ratio of one charging station for every 2.4 new energy vehicles sold during that year.

The competition in the electric vehicle market has driven rapid advancements in charging technology, with companies like Zeekr, a subsidiary of Geely, claiming that its new ultra-fast charging stations can charge a battery from 10% to 80% in just 10.5 minutes—surpassing the performance of Tesla’s charging technology. Nio, for its part, is focused on refining both its charging and swapping technologies, while continuing to build strategic partnerships with automakers such as Chang’an and Geely.

Nio’s power business is also expanding, with recent investments such as a 1.5 billion yuan ($210 million) injection led by a Wuhan city-linked fund. While the majority of Nio’s revenue comes from vehicle sales, its power services segment has grown by 5.2% in the first quarter of 2023, contributing 1.53 billion yuan to the company’s earnings.

The company has not yet announced its second-quarter earnings for 2023 but is expected to do so soon. As Nio continues its ambitious expansion plans, the company remains a central player in China’s push to dominate the global electric vehicle market.