Great Wall Motors (GWM) SA chairperson Tony Pinfold talks to South Africa Magazine, charts GWM’s rise, sets ambitious sales targets and explains why policy action is needed to support local production from low-volume sellers.

By Ian Armitage

Hong Kong-listed Great Wall Motors (GWM) arrived in South Africa in February 2007, with 1,500 units reaching Durban ready for sale across the country. GWM pick-ups and multi-wagons accounted for most of the new arrivals. By March, the first vehicles began selling.

GWM has since sold 30,000 units in the country.

“We act as GWM’s sole agent in South Africa,” explains GWM SA (Pty) Limited’s chairperson Tony Pinfold. “GWM’s products are reliable and well suited to local conditions, and they have been trusted by local users.”

GWM SA’s head office, as well as its logistics and central parts distribution warehouse, is based in Durban.

Its main aim is to provide “honest, reliable and well equipped” vehicles to the broader South African market at exceptional prices and with outstanding service levels.

The brand has grown consistently and so has the product range. Today its SUVs, hatchbacks, passenger cars and pick-ups are a regular feature on South African roads.

“GWM is a healthy, growing brand,” says Pinfold.

GWM SA started with 23 dealers. Today it has over 65. In 2008, there were 24 Chinese vehicle brands present in South Africa – either trading, or in the process of getting certifications - but, in the aftermath of the 2009 recession, several left the local market.

As well as the recession, GWM SA has overcome perceptions regarding Chinese brands to exceed early sales projections. According to Pinfold, GWM initially projected that it would sell between 3,000 and 4,000 units in South Africa in its first years of operation; to date, the company has sold in excess of 30,000 units in South Africa. 


“While we were affected by the economic slowdown and experienced a drop in sales, sales remain above initial projections,” Pinfold says.

“One of the biggest hurdles that we have faced is other Chinese brands,” he adds. “Quality issues, poor service and parts backup created a negative perception of Chinese-manufactured vehicles. We had all been tarred with the same brush, but we have since proved our long-term commitment to the market and our quality.

“We are by far the biggest Chinese brand in South Africa and are no longer compared just in terms of Chinese companies – we are compared with the broader market brands.”

Despite the great progress, there is still more to achieve.

And GWM SA needs help - help from the Government.

“Government should create a step-in programme that will assist small-volume sellers to start manufacturing vehicles locally,” says Pinfold.

He would like to see government introduce a programme that allows for smaller brands to assemble cars and bakkies for a fixed period under a more relaxed set of rules.

“At the moment, it is impossible to compete,” he says. “What would a step-in programme achieve? Well, it could offer some incentives to build volume and eventually enter the new APDP (Automotive Production Development Programme), which pledges support for assembly at an annual plant level of
50,000 cars and bakkies, or more.”

Government’s truck-specific assembly support programme, in the process of being redrafted, allows for support for small-volume truck plants with their much less complex assembly processes and local content.

“There has not been a new local manufacturer in South Africa for years. Why? It is because it is too difficult to compete. We would like to manufacture locally. We could then compete with the manufacturers on an equal footing. We could create jobs and get some benefits – South Africa is a springboard to Africa,” Pinfold says.

“It is difficult for a completely built-up importer like us to compete with local assemblers, as government support programmes allow them to import vehicles at almost no duty.

“There have been proposals to solve the issue, like for instance, the development a multi-model East London plant, an idea put forward by the East London Industrial Development Zone. I don’t like that idea and don’t think it would work. For one, how do you convince your parent company to build vehicles in a plant where competitor vehicles are going to be manufactured? It is very, very difficult. We need a level playing field. If government is serious about what they have been saying, they need to have a step-in programme – it will assist small-volume sellers to start manufacturing vehicles locally. Our parent would encourage us to manufacture locally, as SA could be used as an export base for the whole of Africa.

“The Chinese would love to get into full production – the South African market is the biggest market in Africa, so it has to be here really,” Pinfold explains.

Regardless of such challenges, GWM SA is ambitious and he wants to get close to 7,000 unit sales in 2011.

“We are pleased with the figures we have attained thus far. Currently, it is difficult however to speculate whether we’ll achieve 7,000 unit sales or not. We are concerned by the global economy, the US, and what is happening in Europe – it is having an effect here in South Africa, least not in terms of the rand. It makes it more expensive to import. Europe is obviously in trouble and we are looking at what could be another global financial crisis. We hope to hit around 7,000 units this year. It might be ambitious given what I’ve just said, but we are hopeful.”

South Africa is GWM’s second-biggest right-hand-drive export market. SA ranks as the fourth-largest overall GWM export market, while Russia is the biggest.

For Pinfold, who has been active in the motor wholesale industry in South Africa for “many years”, it all started with a pick-up he saw on a visit to China.

“I immediately sought to secure the local distribution rights,” he tells South Africa Magazine. “It took me many years to convince GWM to produce right-hand-drive vehicles.”

Today pick-ups remain GWM SA’s biggest sellers.

GWM currently offers the Steed 3 pick-up and newer Steed 5 for sale, as well as the recently launched H5 sports utility vehicle, which will soon see the introduction of a diesel derivative.

Pinfold is excited about the H5 sports utility vehicle, voted 2010 Chinese Green Engine of the Year, describing it as a “very up-to-date engine” in terms of performance and fuel consumption. “The H5 four-door five-seater petrol SUV is a stylish new vehicle, available for less than R210,000,” he says. “The beefy front engine, rear wheel driven 4x2 has a sporty front grille, elegant lines and 17 inch wheels to ensure a modern appeal... the H5 also boasts additional comfort features and is perfect for everyday driving and scenic exploration.

“In South Africa, where SUVs now account for around 25 percent of new passenger vehicle sales, the H5 offers a more affordable 4x2 SUV alternative that is accessible to South Africans in the middle-income bracket.”

The Florid hatchback and the more muscled-looking Florid Cross, as well as the CB150 with its distinctive design, also form part of the GWM vehicle range.

New to the market will be the small C10 hatchback with a 1.5 litre petrol engine, which will be introduced early in 2012, according to Pinfold.

“There are plans for medium and large passenger cars as well, but only some time in the future.”

To learn more visit www.gwm.co.za.

Image: Getty