Chinese automaker Chery has acquired Nissan’s former manufacturing plant near Pretoria, South Africa, establishing a local production hub for plug-in hybrids, battery-electric vehicles, and Jetour models.
Chinese automakers are increasingly pivoting from exporting vehicles to building them directly inside Africa, aiming to capture one of the industry’s last major growth markets. This strategic shift is driven by a combination of slowing demand at home, rising trade barriers in North America and Europe, rapid urbanization, and a growing African middle class.
In July, Chery, China’s largest auto exporter, acquired Nissan’s former Rosslyn plant near Pretoria, South Africa. South African Vice President Paul Mashatile spoke at the inauguration of the facility on July 3, 2026. The site will manufacture plug-in hybrids, battery-electric vehicles, and models under Chery’s Jetour brand, putting traditional international automakers under pressure.
Industrial Footprint and Manufacturing Capacity in South Africa
Converting existing assembly facilities allows manufacturers to establish localized operations quickly while utilizing established transport corridors and municipal supply lines. The acquired facility will deploy production lines for multiple vehicle powertrains, handling standard manufacturing runs alongside clean energy vehicle platforms.
South Africa already boasts established manufacturing capacity, skilled workers, and reliable export channels. Chery’s entry into the Rosslyn plant expands an already active Chinese manufacturing footprint in the region. Beijing Automotive Group operates an assembly facility in Gqeberha, formerly known as Port Elizabeth, while Great Wall Motor maintains localized assembly and component distribution capacity.
Industrial plants require continuous access to reliable power, water, and specialized civil infrastructure. Heavy freight corridors remain vital for moving raw materials into assembly halls and transporting finished units to domestic and international distribution centers.
Economic Drivers and the Shift to Affordable Electric Mobility
African automotive markets have relied on used vehicle imports. However, the cost competitiveness of Asian brands is reshaping vehicle accessibility.
“Whilst African consumers have been thriving on used cars, the affordability of Asian brands is providing a wider accessibility reach for new vehicles.”
Hiten Parmar, executive director of The Electric Mission
Local manufacturing helps companies navigate import duties while positioning themselves closer to fast-growing consumer bases. Tombo Banda, managing director of CrossBoundary Group, noted that Chinese factories are currently producing more vehicles than their domestic market can absorb.
“Onshoring production on the continent is a sound long-term investment.”
Tombo Banda, managing director of CrossBoundary Group
Nick Hedley, an energy transition research analyst at Zero Carbon Analytics, emphasized that Africa is a net importer of refined fuels, which places a heavy burden on foreign reserves, local currencies, and national budgets.
“Switching to local electric cars for transportation is in African countries’ national interest.”
Nick Hedley, an energy transition research analyst at Zero Carbon Analytics
Government Policies and Regional Energy Strategies
African governments are actively aligning transport policies with energy security goals. Ethiopia has banned imports of fossil fuel-powered vehicles, encouraging domestic manufacturing by mandating lower import duties specifically for electric vehicles assembled within the country.
South Africa relies on a different set of mechanisms, utilizing production incentives such as customs duty rebates, production-linked credits, direct cash investments, and tax breaks to encourage investments in electric- and hydrogen-fueled vehicle manufacturing. Across the continent, countries including Morocco, Kenya, Ghana, and Zimbabwe are positioning themselves to capture clean energy investments, supported by regional initiatives like the African Union’s Green Minerals Strategy, which aims to boost domestic processing of critical raw materials.
Long-Term Outlook for the Continental Automotive Base
While weak infrastructure and policy uncertainty remain obstacles across parts of the continent, the transition from pure vehicle imports to local assembly and manufacturing is gaining momentum. Industry observers note that consumer adoption of electric vehicles will accelerate as they become more cost-competitive.
As Banda noted, manufacturers must add value locally rather than simply sell into the region, a transition that will transform Africa from a sales market into a genuine manufacturing base.
