Chery Takes Over Nissan's South Africa Factory, Plans Vehicle Production by 2027

Post by : Saif

Chinese automaker Chery has officially taken over Nissan's vehicle manufacturing plant in Rosslyn, Pretoria, marking a major step in the company's African expansion strategy. The handover follows an agreement announced earlier this year, with Chery planning to invest millions of dollars to modernise the facility before vehicle production begins in mid-2027.

South Africa to Become Chery's African Manufacturing Hub

At a ceremony held at the Rosslyn plant on Friday, Chery announced plans to transform South Africa into its regional hub for manufacturing, exports, research and development, and business operations across Africa.

Company executives said the investment reflects Chery's long-term commitment to expanding its presence on the continent while strengthening South Africa's automotive industry.

All Existing Workers to Keep Their Jobs

Chery confirmed it will retain all 692 employees currently working at the Rosslyn factory. The company also expects the project to create nearly 3,000 direct and indirect jobs through manufacturing, supply chains, logistics and related services.

Speaking at the launch ceremony, Chery Auto Vice President Charlie Zhang said the company's long-term vision is to develop the Rosslyn facility into a fully integrated automotive centre with research and development, supplier networks and technical training programmes.

He added that the company aims to support annual vehicle sales of more than 100,000 units in South Africa.

Production to Begin in 2027

Chery plans to invest millions of dollars to upgrade factory infrastructure, install new machinery and improve production facilities before manufacturing begins.

During the initial production phase in the third and fourth quarters of 2027, the company expects to manufacture around 15,000 vehicles.

The Rosslyn plant will initially produce several SUV models, including the Jetour T1, Jaecoo J5, and Chery Tiggo 4. The Jaecoo J5 will be available in both internal combustion engine (ICE) and new energy vehicle (NEV) versions.

Focus on Local Manufacturing and Suppliers

The automaker has also launched a localisation programme aimed at increasing local content to around 40% during the first phase of production.

Company executives said Chery is currently evaluating South African component suppliers while also planning to bring selected suppliers from China, particularly those producing electric vehicle and intelligent vehicle technologies.

The strategy is expected to strengthen South Africa's automotive supply chain while supporting the country's transition toward electric mobility.

Chinese Carmakers Expand Global Manufacturing

Chery's investment comes as Chinese automakers continue expanding overseas amid intense competition and excess production capacity in China's domestic market.

Many Chinese vehicle manufacturers are increasing investments in international production facilities to strengthen exports, access new markets and reduce supply chain costs.

With the Rosslyn facility becoming its first major manufacturing base in Africa, Chery is positioning itself to serve growing demand for passenger vehicles across the continent.

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