GWM South Africa has confirmed it’s bidding to build a new model codenamed “EC15”, though it’s competing against other nations in North Africa and Southern Europe…
- GWM SA bidding to build new “EC15” in Mzansi
- Bidding against North Africa and south of Europe
- Brand’s COO says “barrier to entry is quite high”
A high-ranking GWM South Africa executive has confirmed to Cars.co.za that the Chinese firm’s local division – which has operated as a sole importer for over 18 years – is currently bidding to build a new model codenamed “EC15”.
Conrad Groenewald, Chief Operating Officer of GWM South Africa, made the comments during a wide-ranging interview conducted in Cars.co.za’s custom-built podcast booth at Naamsa’s recent South African Auto Week 2025 in Gqeberha in the Eastern Cape.
When asked whether local production was an aspiration, Groenewald – who joined the company in 2022 after spending more than 25 years at Ford – said: “That was originally why GWM reached out to me and asked me to join them”.
“We’re looking at the continent [of Africa]. There’s a new platform or product that we’ve coded ‘EC15’. We’re competing for the bid to produce that vehicle in South Africa, but we’re bidding against North Africa and the South of Europe.
“We unfortunately have a disadvantage being at the tip of Africa, so our transport costs getting components down, assembling vehicles and shipping them up to the northern export markets is a challenge,” he explained.
It’s not yet clear what form the “EC15” model will take in terms of vehicle segment or body style. But it’s worth keeping in mind that as a wholly owned subsidiary of the Chinese group, GWM South Africa is responsible not only for the GWM marque but also the Haval, Ora, P-Series and Tank sub-brands.
A year prior, Desmond Els, Sales Director at GWM SA, told us that local production was “definitely a consideration” for the brand, though cautioned that any such plans were still in their infancy. Meanwhile, Groenewald suggested progress on that front was still “slow”.
“If you’re in the market, you’ve got to tap into the APDP [Automotive Production and Development Programme] policy. You can’t see yourself as a top 10 player in South Africa and not look at the automotive policies and not look at investment in South Africa and not look at manufacturing opportunities.
“We are busy with market feasibility studies. I think a representative from us last year [at SA Auto Week 2024] made that commitment – we’re busy with that. Unfortunately, a year has passed since that commitment was made. We’re still looking at it. It’s slow – it’s not an easy solution to find because there’s a big investment.”
Groenewald added that under the current version of the APDP – which replaced the Motor Industry Development Programme (MIDP) at the start of 2013 and moved to Phase 2 (APDP2) in 2021 – the “barrier to entry is quite high”.
“Your local content has got to be at 40% of origin. Your volume demand has got to be at 50 000 units [per annum]. The domestic market has not grown over the last couple of years to a point where we can justify to the investors that there’s a safety net in the domestic market,” he explained.
“We’ve got to just find a way that the barrier of entry for new investors coming to South Africa is lowered, so more manufacturers can invest and have a willingness to invest. The established investors or OEMs [original equipment manufacturers] in South Africa haven’t done so on APDP2 – their facilities and investments happened prior to APDP2.
“It was written in a way that allowed them to come in. It allowed them over decades to build and invest in South Africa. Maybe we need to go back to the pre-APDP policies to look at opportunities to allow a lower level of investment and allow job creation and allow skills development?” Groenewald suggested.
Frequently Asked Questions (FAQ)
Q: What is the model GWM South Africa is bidding to build?
A: GWM South Africa is bidding to build a new vehicle model that is currently codenamed “EC15”.
Q: What countries is GWM South Africa competing against for the “EC15” production bid?
A: GWM South Africa is competing against other nations in North Africa and the south of Europe for the bid to produce the “EC15” model.
Q: What is one of the main policy requirements that acts as a “barrier to entry” for local manufacturing?
A: The Chief Operating Officer, Conrad Groenewald, cited the Automotive Production and Development Programme Phase 2 (APDP2) policy’s requirement for 40% local content of origin and a 50 000-unit per annum volume demand as a high barrier to entry for new investors.
Related content
GWM Tank 300 sales surge to fresh high
