Chinese electric vehicle maker BYD is considering a battery and vehicle component manufacturing plant in South Africa, a move that could deepen its investment in Africa’s largest automotive market as demand for electric vehicles continues to rise.

The company said it is studying the feasibility of producing its Blade Battery and other key EV components locally instead of building a traditional vehicle assembly plant.

The approach sets BYD apart from several global automakers that have invested in vehicle production facilities in South Africa.

The announcement came during the launch of BYD Finance, the company’s joint venture with Absa.

The partnership is expected to support vehicle sales through financing while reinforcing BYD’s longer-term plans to expand its presence in the country.

The plans also come as South Africa steps up efforts to attract investment in electric mobility, battery production and clean energy manufacturing through proposed policy incentives for the automotive sector.

Focus on battery production BYD

South Africa Marketing Director Nomonde Kweyi said the company sees greater value in producing advanced technology than assembling complete vehicles.

“We have seen other original equipment manufacturers establish manufacturing plants in South Africa, and that contributes to economic growth,” Kweyi said.

“Our strategy is different. We are a technology company as much as we are a car company.

If we establish a production facility, our focus would be on components, particularly the Blade Battery, rather than vehicle assembly.”

Sales and financing drive expansion

The manufacturing plans support BYD’s rapid expansion in South Africa. The company was the country’s second-largest new energy vehicle brand between January and May 2026, with 2,011 vehicle registrations.

It plans to grow its dealership network from 52 outlets to 80 by the end of the year.

To support that growth, BYD Finance will provide dealer funding, flexible vehicle finance and guaranteed future value products.

Absa Vehicle and Asset Finance Managing Executive Charl Potgieter said financing for battery electric vehicles increased 193% from a year earlier, as more buyers look beyond fuel prices and consider the long-term cost of owning an electric vehicle.

Policy support strengthens outlook

BYD’s plans come as South Africa reviews changes to its Automotive Production and Development Programme, including proposed incentives for battery manufacturers that use locally sourced minerals.

The company has also signed a memorandum of cooperation with Eskom to pilot fast-charging infrastructure across the country, helping address one of the biggest barriers to wider EV adoption.

Founded in Shenzhen, China, BYD is one of the world’s largest manufacturers of electric vehicles and rechargeable batteries.

The company designs and produces passenger vehicles, commercial vehicles, energy storage systems and its Blade Battery technology.

It continues to expand across Africa, Europe, Asia and Latin America as demand for electric mobility grows.