Absa Signs Vehicle Finance Alliance Agreement with BAIC SA

Absa has entered into a vehicle finance alliance agreement with BAIC SA, the local subsidiary of the Beijing Automotive Group Co., as the vehicle manufacturing firm expands its operations in the region.

BAIC SA launched in South Africa in 2016 and has made significant structural investments in our country, including a state-of-the-art manufacturing and assembly plant in the Coega Industrial Development Zone, near Gqeberha. At the time of the investment, this represented the biggest foreign direct investment by an automotive company in South Africa in over 40 years, expected to create as many as 13 000 direct and indirect jobs.

For Absa, the alliance represents an opportunity to boost our share of financed vehicles sold in the country as the popularity of affordable luxury brands continue to grow among South Africans. BAIC’s luxury category Beijing X55, launched locally on 15 November 2022, is a finalist in the South African Guild of Mobility Journalists’ 2023 ‘SA Car of the Year’ award. The successful launch of its vehicle models, together with a dealer network of 29, has laid a solid foundation for BAIC SA’s expansion.

“We are honoured to partner with an automotive player that has invested in the growth of our continent, aligned with our values as a purpose-led pan-African bank. We look forward to leveraging off each other’s strengths to drive greater competition in the market and deliver better value for our customers,” said Charl Potgieter, Managing Executive: Absa Vehicle and Asset Finance.

As a full-value bank, Absa will partner with the automotive manufacturer to offer comprehensive financing options to help fuel BAIC SA’s growth in operations and offer attractive credit solutions to customers. Both BAIC and Absa will stay close to customers and our industry – dealer partners, vehicle importers and manufacturers – to deliver value for the industry.

“There is an increase in the sale of China’s automotive brands in our market and this is also the case with BAIC manufactured vehicles, as it prepares up to take on competitors locally,” Potgieter said. The South African consumer has come to appreciate the growing trend in affordable luxury branded vehicles and expects more “bang for their buck” when buying a new or used vehicle during these tough economic times and this alliance answers the call from the South African consumer on many levels.”

With three models available locally, BAIC SA has many opportunities to diversify its offering throughout the value chain. Groupwide, Absa is committed to offering BAIC various services that will allow each entity to reach our growth ambitions.