In South Africa’s competitive auto market, Combined Motor Holdings (CMH) has built a notable presence through a focus on affordable, reliable brands from Asia. This investment holding company manages dealerships, marketing, and repairs for brands like Haval, Chery, and Suzuki. Through this approach, CMH has nearly doubled its market cap over the past five years, making it a rising force in the industry.

Successful Strategy with Popular Brands

CMH’s strategy centers on popularizing affordable Asian brands, with Suzuki now ranking as the third best-selling automaker in South Africa. This growth saw Suzuki surpass Volkswagen in sales in 2024, a milestone that was previously unimaginable. Haval and Chery have also seen rapid growth, outselling brands like BMW and Mercedes-Benz. For instance, Haval’s sales doubled over three years, reaching 14,265 units in 2023.

Profitable Growth and Consumer Shifts

The rising popularity of these affordable vehicles has significantly boosted CMH’s profits, doubling its earnings to R408 million over five years. CMH’s CEO, Jebb McIntosh, noted that over half of vehicles sold in South Africa come from India or China, reflecting the local shift toward affordable options. Additionally, CMH’s parts distribution subsidiary, Mandarin Parts Distributors, has become the largest distributor of Chinese automotive parts in South Africa, contributing to a 20% profit increase in its components division.

Competitor Contrast: Motus Holdings

Motus Holdings, a main competitor to CMH, focuses on premium brands like Audi, BMW, and Mercedes-Benz while also managing Kia, Hyundai, and Renault. However, Motus faces challenges as rising inflation and economic pressures push consumers to “buy down” or delay vehicle upgrades, affecting its profitability.

Growing Demand for Chinese Vehicles

The increasing interest in Chinese brands in South Africa reflects a global trend where affordable, quality vehicles gain market share. According to Standard Bank, finance plans for Chinese cars are growing year-on-year, even though these brands currently account for less than 10% of total sales. “These brands are clearly gaining traction,” said Derick De Vries, Head of Automotive Retail at Standard Bank.

As South Africa’s overall vehicle market sees a decline in sales, brands like Suzuki, Chery, and Haval are expanding their market share, positioning CMH as a major player in the local automotive landscape.