Chery’s South African Play: A Harbinger of China’s Automotive Expansion
Just 8,700 vehicles. That’s all Nissan managed to sell in South Africa during 2025, a nearly 20% drop that ultimately led to the sale of its Rosslyn plant to Chery SA. This isn’t simply a story of one automaker’s struggle; it’s a pivotal moment signaling a dramatic shift in the global automotive landscape, and a bold move by Chinese manufacturers to establish a stronger foothold on the African continent – and beyond. Understanding this deal, and its implications, is crucial for anyone watching the future of car manufacturing and international trade.
The Deal: More Than Just a Factory
The acquisition, expected to finalize by mid-2026 pending regulatory approvals, encompasses not only the Rosslyn plant itself – with a capacity of 45,000 units annually – but also the land, buildings, production machinery, and a nearby stamping plant. This is a comprehensive takeover, providing Chery with a ready-made base of operations in a strategically important region. Crucially, the agreement includes a commitment from Chery to offer employment to the majority of Nissan’s existing workforce under comparable conditions, a move applauded by Nissan Africa President Jordi Villa as ensuring continued contribution to the South African automotive sector and maintaining supply chain stability.
Jetour’s African Ambitions and the G20 Connection
While Chery SA is driving the acquisition, the real beneficiary is arguably Jetour, its all-terrain SUV arm. Jetour has been actively building its presence in Africa, highlighted by its role as the official transportation provider for world leaders at the November 2025 G20 Summit in Johannesburg. As Johnny Fang, CEO of Jetour Soueast in Mexico, stated, the company views this as a “safe step with flattering prospects, even globally.” This isn’t a tentative foray; it’s a calculated expansion leveraging a pre-existing, high-profile presence. The Rosslyn plant provides the manufacturing capacity to support this growth, allowing Jetour to move beyond simply showcasing its vehicles to actually producing them locally.
The Rise of Chinese Automotive Power
This deal isn’t an isolated incident. It’s part of a larger trend: the increasing influence of Chinese automakers on the world stage. Chinese manufacturers are no longer content to be low-cost producers; they are investing in global manufacturing capabilities, developing advanced technologies, and challenging established players. The South African acquisition demonstrates a confidence in the industrial infrastructure of African nations and a willingness to commit significant resources to long-term growth. This is a clear signal that China is serious about becoming a dominant force in the automotive industry.
Implications for Mexico and Beyond
The impact of this deal extends far beyond South Africa. Chery plans to continue producing the Navara pickup (known as the Frontier in Mexico and other markets) at the Rosslyn plant, alongside new models like the Tekton and Nissan Patrol. This could potentially impact the supply chain and pricing of these vehicles in markets like Mexico. Furthermore, the success of Jetour in Africa could pave the way for increased exports to Latin America, creating new competition for established brands. The ripple effects of this acquisition will be felt across the global automotive network.
Navigating the New Automotive Order
The shift in automotive power demands a reassessment of traditional market dynamics. Western automakers need to adapt to the increased competition and invest in innovation to maintain their market share. Consumers will likely benefit from increased choice and potentially lower prices, but also need to be aware of the evolving landscape and the potential implications for quality and reliability. The Rosslyn plant deal is a microcosm of a much larger transformation, one that will reshape the automotive industry for years to come.
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