Joint venture on road to success in minibus market

Jessup said minibuses provide reliable, safe and cost-effective taxi service in South Africa.

"We want Sasuka to dislodge Toyota's Sesfikile" minibus, he said. "Though Japanese auto brands are global giants, it does not mean that Chinese companies cannot compete with them. They also have weaknesses like expensive after-sales and maintenance."

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Affordability and better after-sales service are key for the Chinese venture, Chung said.

He added that although Chinese companies have been late entrants, they can use their African experience as a valuable stepping stone to other developing markets.

"Compared with the evolution of the Japanese brands in the global markets during the past decade, Chinese manufacturers now have unique advantages, like a huge domestic market and abundant capital."

He said that although the Sasuka and the Sesfikile are similar in engine power, maintenance costs for the Chinese brand are much lower. The Sasuka also has such features as touch screen controls for the CD/radio and DVD player, comfortable seats and a factory-fitted air-conditioning system.

"Consumers will also get a two-year/200,000-km service plan, which covers maintenance of the entire braking system. Our efforts are to focus on quality and safety in the long term, and not just the price," Chung said.

South African consumers will accept Chinese brands if the company can ensure quality and after-sales services, he said.

"Apart from doing more to boost consumer finance, Chinese companies also need to step up the overall quality levels, especially in terms of quality consistency," he added.

The company plans to add dealers to its current network of 36, and assemble SUVs and pickups at the Springs plant later this year.