Chinese automaker Chery has officially taken over Nissan’s manufacturing plant in Rosslyn, South Africa, establishing a central hub for its African operations. The move, finalized on Friday following a January announcement, aligns with a broader industry trend of Chinese manufacturers expanding into emerging markets to counter domestic market saturation and intense price competition, according to Reuters.
Why is Chery targeting the South African market?
Chery aims to use the Rosslyn facility as a cornerstone for its regional expansion, targeting sales of over 100,000 vehicles annually in South Africa. According to Chery South Africa Vice President Charlie Zhang, the company intends to develop the site into a comprehensive automotive center. This includes integrating research and development (R&D), supply chain management, and specialized training programs to support its growing footprint on the continent.
South Africa currently hosts production facilities for several global automotive giants, including BMW, Mercedes-Benz, Ford, Toyota, Isuzu, and Volkswagen, cementing its status as the continent’s largest vehicle manufacturing hub.
How will the Rosslyn plant transition to Chery production?
Chery plans to upgrade the factory’s machinery and utilities before commencing vehicle production in mid-2027, as reported by Reuters. The company has not disclosed the specific financial value of these upgrades. Once operational, the facility is expected to produce an initial 15,000 vehicles during the third and fourth quarters of 2027.
The initial production lineup will feature three SUV models:
- The Jetour T series
- The Jaecoo J5 (available in both internal combustion and new energy vehicle variants)
- The Chery Tiggo 4
What does this mean for local supply chains?
To deepen its integration into the local economy, Chery has initiated a program targeting 40% local content during the first phase of manufacturing. The company is currently evaluating South African Tier 1 suppliers to meet these requirements. However, Chery also plans to import specialized suppliers from China, specifically to provide electric vehicle technologies and intelligent driving components that may not yet be available through local channels.
Market Expansion Comparison
| Manufacturer | Strategy |
|---|---|
| Chery | Acquiring existing assets to leverage mature infrastructure. |
| Other Chinese OEMs (BYD, SAIC, GAC) | Accelerating overseas expansion into Africa, Latin America and Southeast Asia. |
When evaluating the impact of international acquisitions, look at the “local content” percentage. A higher percentage typically signals a more sustainable, long-term commitment to the host nation’s economy rather than a simple assembly-line operation.
Frequently Asked Questions
When will production begin at the Rosslyn plant?
Chery expects to begin manufacturing vehicles at the facility in mid-2027.
What types of vehicles will be produced?
The plant will initially produce the Jetour T series, the Jaecoo J5, and the Chery Tiggo 4. The Jaecoo J5 will be produced in both internal combustion and new energy versions.
Why did Chery choose an existing plant over building a new one?
By acquiring an existing facility, Chery gains immediate access to an established export infrastructure, a skilled workforce, and a mature supplier network.
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