China’s Chery takes over former Nissan car factory in South Africa

By Nqobile Dludla

JOHANNESBURG, July 3 (Reuters) – China’s Chery formally took over Nissan’s car manufacturing plant in Rosslyn on Friday under a deal that was announced in January, and executives said the ​company will spend millions of dollars upgrading and adding machinery ‌ahead of starting vehicle production in South Africa in mid-2027.

Chery said in a statement it wants to establish South Africa as its African hub for manufacturing, exports, research and development, and regional operations.

Chery, China’s largest car exporter, has committed to retaining ‌all ​692 existing employees at the plant and Zhang ⁠said the project would create ⁠nearly 3,000 direct and indirect jobs across manufacturing, supply chains and related services.

“Our long-term goal is to turn the Rosslyn plant into a complete auto center with research and development, supply chain operations, ​and training, supporting Chery’s expanding presence and the goal of exceeding 100,000 annual vehicle sales in South Africa,” Vice President Charlie Zhang of ⁠Chery Auto said during a ceremony at ⁠the former Nissan facility. It was attended by executives, ​government officials and industry stakeholders.

Chinese automakers, faced with mounting competition and excess ​capacity in their domestic market, have been accelerating overseas expansion ‌in search of growth, increasing their manufacturing and sales footprints globally.

Chery will use the factory to initially produce the Jetour T series, which includes T1, Jaecoo J5 and Chery Tiggo 4 sport utility vehicles (SUV). The Jaecoo ⁠J5 will be in both internal combustion engine (ICE) and new energy vehicle (NEV) versions.

Zhang told reporters that Chery will invest millions of dollars, but did not ⁠specify an amount, to ‌upgrade facilities and utilities at the plant before starting ⁠production. During the ramp-up phase in the third ​and fourth ‌quarters of 2027, the company expects to produce ​15,000 vehicles.

The Chinese ⁠carmaker has launched a programme aimed at moving towards 40% local content in the initial stage and is surveying tier-1 suppliers.

Chery also plans to bring in suppliers from China, especially for electric and intelligent vehicle components, Chery Auto Executive Vice President Zhang Guibing told reporters.

(Reporting by Nqobile Dludla; Editing ​by David Gregorio)