JOHANNESBURG – Chinese automotive giant Chery has officially taken control of Nissan’s former manufacturing plant in Rosslyn, South Africa, in a landmark investment that is expected to create nearly 3,000 jobs while reinforcing the country’s position as Africa’s leading automotive production hub.
The acquisition marks a significant milestone in Chery’s African growth strategy as Chinese vehicle manufacturers accelerate overseas expansion in response to slowing domestic demand, excess production capacity and intensifying competition in China’s automotive market.
The Rosslyn plant, whose handover was completed on Friday following an agreement announced earlier this year, will become Chery’s regional headquarters for vehicle manufacturing, exports, research and development (R&D), supply chain operations and technical training.
According to the company, the facility is central to its long-term ambition of exceeding 100,000 annual vehicle sales in South Africa while establishing a comprehensive automotive ecosystem to serve markets across the African continent.
“Our long-term goal is to transform the Rosslyn plant into a complete automotive centre with research and development, supply chain operations and training capabilities that will support Chery’s expanding footprint across Africa,” said Chery South Africa Vice President Charlie Zhang.
Major boost for South Africa’s automotive industry
The investment represents a major vote of confidence in South Africa’s manufacturing sector, which remains Africa’s largest automotive production base and export hub. The country hosts manufacturing operations for several global brands, including BMW, Mercedes-Benz, Ford, Toyota, Isuzu and Volkswagen, supported by an established supplier network and world-class export infrastructure.
By acquiring an existing production facility rather than constructing a greenfield plant, Chery gains immediate access to skilled labour, mature logistics networks and an experienced automotive supply chain, significantly reducing the time required to commence production.
The company has committed to retaining all 692 employees currently working at the Rosslyn facility while creating an estimated 3,000 additional direct and indirect jobs across manufacturing, logistics, component production and related support services.
Production scheduled for 2027
Before production begins, Chery plans to invest millions of dollars in modernising the factory’s production lines, machinery and utilities, although the company has yet to disclose the total capital investment.
Vehicle manufacturing is scheduled to commence in the second half of 2027, with an initial production target of approximately 15,000 vehicles during the final two quarters of the year.
The facility will initially manufacture several sport utility vehicle (SUV) models, including the Jetour T Series, the Jaecoo J5 and the Chery Tiggo 4.
Reflecting the industry’s transition towards cleaner mobility, the Jaecoo J5 will be produced in both internal combustion engine (ICE) and new energy vehicle (NEV) variants, supporting Chery’s broader strategy of expanding its electric and hybrid vehicle portfolio.
Localisation strategy
A key component of the investment is Chery’s localisation programme, aimed at strengthening South Africa’s automotive value chain.
The company intends to achieve approximately 40% local content during the initial production phase and has already begun assessing South African Tier 1 suppliers for integration into its manufacturing ecosystem.
At the same time, specialised suppliers from China will be introduced to support the production of advanced electric vehicle systems, intelligent driving technologies and other high-value automotive components.
Industry analysts say the localisation strategy has the potential to stimulate supplier development, attract further foreign direct investment and enhance South Africa’s competitiveness as a regional manufacturing and export platform.
China’s automotive expansion gathers pace
Chery’s investment reflects a broader global expansion by Chinese automotive manufacturers, who are increasingly targeting emerging markets as domestic growth moderates.
Leading Chinese brands including BYD, GAC, Great Wall Motor and SAIC have significantly expanded their international manufacturing footprint across Africa, Latin America and Southeast Asia, seeking new markets for both conventional and electric vehicles.
For South Africa, Chery’s acquisition of the Rosslyn plant underscores the country’s strategic importance within the global automotive industry and is expected to strengthen its role as a gateway for vehicle production and exports to the wider African market.
As global competition reshapes automotive supply chains, the investment signals growing confidence in Africa’s manufacturing potential and highlights the continent’s increasing importance in the future of the global automotive industry.
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