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One of China’s biggest automakers to take over Japanese Nissan’s plant in South Africa

One of China’s biggest automakers to take over Japanese Nissan’s plant in South Africa
Monday, 26 January 2026 14:30
  • Nissan will sell its Rosslyn plant near Pretoria to Chery South Africa
  • Vehicle production is expected to stop in May, pending regulatory approval
  • Chery aims to expand its industrial footprint as Chinese brands gain market share

A chapter of South Africa’s automotive industrial history is coming to an end. Japanese carmaker Nissan has announced the sale of its Rosslyn plant, near Pretoria, to the local subsidiary of China’s Chery Automobile Group. The decision marks the end of Nissan’s vehicle production in the country, after nearly 60 years of industrial presence.

The Rosslyn site, opened in 1966, had in recent years been assembling a single model, the Navara pick-up, mainly for the domestic market and exports to other African countries. Nissan said production is expected to stop as early as May, if the transaction is completed as planned by mid-2026, subject to regulatory approvals.

The divestment forms part of a broader restructuring plan by the Japanese automaker, which has been weakened by several loss-making years and faces rising competition in global markets. Nissan has been refocusing its operations, closing or consolidating several plants worldwide to cut costs and improve the profitability of its industrial base.

1 transport

Conditions at the Rosslyn plant had steadily deteriorated. The end of NP200 production in 2023, a high-volume pick-up, sharply reduced the site’s utilization rate. At the same time, Nissan faced intense competition in the light commercial vehicle segment, dominated by Toyota, Ford, and Isuzu.

Nissan has stressed that it is not exiting the South African market entirely. The group will continue to sell and service vehicles in the country, with several launches planned for the 2026 financial year, including the Patrol and Tekton models.

On employment, Nissan said most affected workers should be offered positions by Chery South Africa under terms close to their current conditions. This remains a sensitive issue in a country where the automotive sector is a key pillar of manufacturing employment.

For Chery, China’s third-largest automaker by volume, the acquisition represents a strategic step. Already commercially active in South Africa, the group aims to strengthen its industrial presence on the continent, as Chinese brands rapidly gain market share in Africa, supported by competitive pricing and a broader model range.

The deal comes as South Africa’s automotive industry seeks to reinvent itself, notably through tax incentives designed to attract investment in alternative energy vehicles. From March 2026, automakers will be able to recover up to 150% of taxes on investments in facilities and equipment dedicated to the production of new energy vehicles.

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