• Chery finalizes acquisition of Nissan’s Rosslyn plant and targets production start by end-2027

• South Africa’s auto market rebounds strongly, with sales up 15.7% in 2025

• Chinese automakers accelerate localization strategy amid rising global trade barriers

Chery Automobile is finalizing the acquisition of Nissan’s Rosslyn plant near Pretoria, in a strategic move to strengthen its industrial footprint in Southern Africa.

The Hong Kong-listed Chinese group aims to launch production at the site by the end of 2027. The company plans to complete a refurbishment and modernization phase lasting between 12 and 18 months. The company has not disclosed the transaction value or total investment.

A South African Auto Market in Recovery

The timing aligns with a strong rebound in South Africa’s automotive sector. The country recorded its best performance in over a decade in 2025, as total new vehicle sales rose 15.7% to 596,818 units and exceeded pre-pandemic levels for the first time.

Passenger vehicle sales drove this growth. Sales increased 20.1% year-on-year to 422,292 units. National Association of Automobile Manufacturers of South Africa expects further expansion of 9% to 11% in 2026, supported by easing inflation and lower interest rates.

This recovery reflects more than cyclical factors. It signals a structural shift led by Chinese brands. Automakers from China have expanded nearly nine times faster than the overall market and now account for more than 17% of new passenger vehicle sales, compared with less than 5% four years ago.

Chery Strengthens Local Position

Chery Automobile already holds a solid position in the market. The company increased sales by 26.7% in 2025 to 25,304 units. The company secured the eighth position among automakers in South Africa and raised its market share to 4.2%.

The company has built a network of 150 dealerships since its return four years ago. The company sells an average of 50,000 vehicles annually. This commercial base gives the company the scale to transition to local manufacturing.

“This investment reflects the unwavering support of our local customers and partners,” said Charlie Zhang, executive vice president of the group, on the sidelines of a conference in Johannesburg.

Electrification as an Export Lever

The company will not limit production at Rosslyn to internal combustion vehicles. Chery Automobile plans to position the plant as a hub for electrified vehicles, including hybrids, plug-in hybrids, and fully electric models, targeting export markets in Africa and Europe.

The strategy aligns with local demand trends. Hybrid vehicles already dominate South Africa’s new energy vehicle segment. They account for nearly three-quarters of NEV sales, as consumers favor affordable options that rely less on charging infrastructure.

Localization as a Response to Trade Barriers

This investment reflects a broader global trend. Chinese automakers have accelerated overseas industrial expansion in response to rising trade barriers targeting exports. The industry has opened more than 15 new plants since 2022 across markets including Malaysia, Brazil, Hungary, and Spain.

China exported more than 5.5 million vehicles in 2024, making it the world’s largest exporter. Exports should exceed 7 million units in 2025, although tariff pressures increasingly limit pure export growth and push manufacturers toward localization.

Chery Automobile operates 16 global production bases, including facilities in Iran and Russia, and continues to expand into Southeast Asia and Europe. The company ranked as China’s top auto exporter in the first half of 2025, with 548,000 units, representing 17.8% of total exports. The company aims to consolidate this position through local production.

An African Market in Structural Transition

South Africa remains the primary gateway for automakers targeting sub-Saharan Africa. By securing industrial capacity in the country, Chery Automobile positions itself for long-term growth in a region with structurally rising vehicle demand.

The company also plans to develop a network of local suppliers around the Rosslyn site. This approach could generate significant spillover effects for South Africa’s manufacturing sector and strengthen its case with regulators.

“Our commitment here is not only a step in our globalization strategy, it is also our long-term commitment to South Africa’s economic and industrial development,” said Charlie Zhang.

Fiacre E. Kakpo