New Car Brands to Drive Economic Growth in SA

Troy van der Westhuyzen

While local vehicle manufacturers have experienced a downturn in sales and exports this year, financing companies like Standard Bank Vehicle Finance have reportedly seen a surge in demand for the financing of new car brands entering the South African market from abroad.

“More entrants to the market means more dealership networks, which directly translates into increased job creation – positively impacting the economy,” says Troy van der Westhuyzen, Managing Director at MVIA Insure.
One of the newest entrants is LDV, a subsidiary of SAIC Motor Corp, the largest vehicle manufacturer in China and one of the 10 largest in the world.

To support LDV’s expansion into the South African market, MVIA has formed a strategic partnership with the brand to bolster the success of its growing national dealer network. This entails the development of a bespoke suite of optional insurance and non-insurance products which MVIA will administer including maintenance plan options, tyre & rim protection and scratch & dent cover. “These will enable dealerships to provide additional value to their clients and enhance their value proposition,” explains van der Westhuyzen.

He adds that outsourcing the administration of these products to MVIA also helps dealerships avoid the costs and complexities associated with managing these functions in-house, ensuring that these critical tasks are handled by experienced professionals.

“Moreover, these offerings are designed to enhance LDV's appeal to South African consumers,” notes van der Westhuyzen. “By mitigating the financial risks associated with vehicle servicing, maintenance, and unexpected repairs with coverage tailored to their needs and budget, LDV provides motorists with a compelling combination of affordability, value and peace of mind.”

Looking to the future, he shares that MVIA’s long-term goal is to help new brands like LDV grow in South Africa by developing additional product streams that anticipate and respond to market changes and client needs. LDV South Africa is a strong player in vehicle manufacturing but is new to the complexities of vehicle insurance. By partnering with MVIA, LDV can bridge this gap, providing their customers with tailored, expert-driven insurance solutions. With MVIA’s proficiency in policy management and administration, LDV can deliver unmatched value and peace of mind to their clients.

“As new brands continue to enter South Africa, partnerships like the one between MVIA and LDV are crucial for the growth and prosperity of their dealerships. The economic activity generated by these businesses positively impacts both local communities and the national economy. With the dealership economy contributing 2.1% to GDP, their success is South Africa’s success,” concludes van der Westhuyzen.