Chinese motor company Chery says it will invest “hundreds of millions of dollars” in its South African vehicle manufacturing operation. On Friday, the company officially opened its assembly plant, which previously belonged to Nissan South Africa. Chery plans to start building vehicles there in mid-2027.
Officials won’t detail the initial investment or over what period the “hundreds of millions” will be spent. Nevertheless, the deal is an important one for the local motor industry. Chery has quickly become a major player in the local new vehicle market, and its shift from importer to manufacturer could, if followed by other Chinese companies, transform the industry.
The assembly plant is in the Tshwane industrial suburb of Rosslyn, where BMW South Africa is a neighbour and dozens of companies build automotive components. Chery says it will retain Nissan South Africa’s 692 assembly line workers and hopes to support 3,000 more jobs at components suppliers and service providers.
“We have moved from being an importer to a manufacturer and from a market participant to a long-term partner in South Africa’s industrial story,” says Yin Tongyue, chair and founder of Chery Automobile Co. “Wherever we invest, we commit.”
Chery South Africa, the local subsidiary, imports and markets several group brands. Besides Chery, it also represents Omoda, Jaecoo, Jetour, iCaur and Lepas. Products include passenger cars, SUVs and new-energy vehicles (NEVs), initially electric.
Officials have said previously that the Jaecoo J5 SUV will be built at Rosslyn, in both NEV and traditional internal combustion engine forms, as well as the Jetour T-Series SUV range. On Friday, they said the Chery Tiggo 4 Pro, the group’s most popular vehicle in South Africa, was also being considered.
Wherever we invest, we commit
— Yin Tongyue
Nissan, or Datsun as it was then, opened the Rosslyn plant in 1963, but production volumes have slumped in recent years, making the plant uneconomic to maintain. Much of its infrastructure will be replaced by the new owner.
Chery says it plans to build 15,000 vehicles there in the second half of 2027 as a first step towards its first-phase capacity of 50,000 — the minimum annual production required to qualify for the full range of incentives under the government-led automotive production & development programme (APDP).
It is likely to build both right-hand and left-hand drive vehicles to allow for exports, particularly into other African countries. Officials say the investment “forms part of Chery’s broader vision to establish South Africa as its African manufacturing, export, research & development and operational headquarters”.
By 2028, Chery hopes local content will account for 40% of the ex-factory cost of its vehicles — a figure that would put it ahead of the current industry average. Company officials tell the FM that some of the group’s Chinese suppliers will be encouraged to establish South African wholly-owned subsidiaries or joint ventures with local partners.
The company says its eventual product strategy will include passenger vehicles, commercial vehicles, smart agricultural machinery, environmentally friendly agricultural technologies, mineral resources and robotics.
Chery’s brands have had 29.9% sales growth so far in 2026. Market share has grown 18.15%. The short-term aim is to achieve annual sales of 100,000. Last month, the combined total for Chery, Jetour, Omoda and Jaecoo was 60,762. Lepas and iCaur are not yet reporting sales.
Though the initial Chery investment will replace previous Nissan production and employment, the hope for motor industry planners is that it will grow into something far bigger and help the APDP achieve developmental goals that are currently unattainable.
The government is reviewing the APDP, which is falling well short of growth targets for production, jobs, localisation and empowerment. Chinese companies have been accused of undermining progress by flooding the market with subsidised imports whose prices local manufacturers can’t match.
If more of these importers switch to production, growing calls for increased tariff protection will diminish. Chery is the second Chinese company to commit to local manufacture, after BAIC.
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