Production starts in 2027
Chery takes over Nissan plant in South Africa
Chery is expanding its manufacturing in Africa and is taking over the former Nissan plant in Rosslyn. From 2027, SUV models from Chery, Jaecoo and Jetour are to be produced there. Chery wants to create 3,000 jobs in South Africa and build a local supplier network.
Chery is pushing ahead with its international expansion and has officially taken over Nissan's former Rosslyn vehicle plant near Pretoria. With the opening of the site, the company is taking the step in South Africa from importer to local producer. Series production is scheduled to begin in mid-2027 after extensive modernisation work.
The plant was originally built in 1963 and most recently belonged to Nissan. Chery had already announced the takeover at the beginning of the year. The transaction has now been officially completed in the presence of high-ranking government representatives from South Africa and China.
50,000 vehicles capacity per year planned
According to the manufacturer, the facility is initially to be designed for an annual capacity of 50,000 vehicles in single-shift operation. During the ramp-up phase in the second half of 2027, Chery initially expects production of around 15,000 vehicles. For the modernisation of infrastructure and production facilities, the Group intends to invest several million US dollars, a Chery manager told media representatives. An exact sum was not stated.
Models of the Jetour, Jaecoo and Chery brands are initially to be produced. Mentioned were, among others, the SUV model series Jetour T1, Jaecoo J5 as well as the Chery Tiggo 4. The Jaecoo J5 is to roll off the production line both with an internal combustion engine and as an electrified variant.
Focus on localisation and suppliers
Chery also announced an extensive localisation programme. By 2028, a local value-added share of initially 40 per cent is to be achieved. To this end, the company is currently examining potential Tier-1 suppliers in South Africa. At the same time, Chery plans to bring, in particular, components for electric vehicles and intelligent vehicle systems to South Africa via Chinese suppliers.
The takeover also secures existing jobs. All 692 employees of the plant are to be taken on. In addition, Chery expects the creation of nearly 3,000 direct and indirect jobs along the value chain.
Chery Auto will do its best to integrate itself in every market it enters into the local economy, the local community and the future of this country
South Africa becomes the Africa hub
In the long term, Rosslyn is to be far more than a pure production site. Chery plans to expand it into a regional automotive hub with research and development, supply chain management and training programmes. Group chief executive Yin Tongyue emphasised the local anchoring of the investment: “Chery Auto will do its best to integrate itself in every market it enters into the local economy, the local community and the future of this country.”
Part of the global expansion strategy
The investment in South Africa is set against the backdrop of the increasing internationalisation of Chinese car manufacturers. In view of intense competition and existing overcapacity in the domestic market, Chinese OEMs are expanding their production and sales structures worldwide. In doing so, Chery is pursuing the goal of establishing South Africa as a regional centre for production, export, research and development as well as operational activities on the African continent.
With the plant in Rosslyn, Chery gains not only access to an established production base, but also to one of Africa's most important automotive locations. For the South African automotive industry, the change of ownership also means the preservation of industrial capacities that would otherwise have come under pressure following Nissan's withdrawal.
