On July 3 local time, Chery Automobile officially took over Nissan’s automobile manufacturing plant in Rosebank, South Africa.
According to Reuters on the 3rd, Chery stated in a statement that before commencing vehicle production in South Africa by mid-2027, the company will invest millions of dollars in upgrading the factory and adding machinery.
Chery stated that it hopes to turn South Africa into a manufacturing, export, research and development, as well as regional operations center for the company in Africa.
"A new era is approaching," Chery South Africa announced in a social media post. "On the 3rd, we will take over a factory in South Africa. From this moment on, Chery Automobile will proudly serve South Africa and produce vehicles there."
On that day, Zhang Guibing, Vice President of Chery Automobile, stated at a ceremony held at Nissan's former factory: "Our long-term goal is to transform the Roslin factory into a complete automotive center, integrating research and development, supply chain operations, and training. This will support Chery's expanding business portfolio and help achieve an annual sales volume of over 100,000 units in South Africa."
Chery has promised to retain all 692 employees working at the factory. Zhang Guibing stated that this project will create nearly 3,000 direct and indirect jobs in the fields of manufacturing, supply chain, and related services.
He also told reporters that Chery plans to introduce Chinese suppliers, especially in the fields of electric vehicles and intelligent automotive components.
Data shows that in December last year, Chery surpassed Suzuki as South Africa's second-largest passenger car seller.
On July 3rd, Chery held a ceremony to officially take over Nissan's factory in South Africa. Social Media
This transaction was announced in January of this year. According to Nissan, subject to certain conditions (including obtaining approval from regulatory authorities), Chery will acquire the land, buildings, and related assets of Nissan’s factory by mid-2026, including its nearby stamping plant. Most of the employees associated with Nissan will be hired by Chery Automotive, and their working conditions will remain basically the same as currently.
At that time, this deal attracted the attention of many foreign media. Bloomberg believes that the acquisition of Nissan’s automobile manufacturing plant in South Africa is yet another example of the growing global dominance of Chinese automobile brands. Reuters and Business Insider noted that this decision is consistent with Nissan’s global restructuring plan, as the company is striving to optimize its operations despite financial losses and low production capacity at its factories.
In recent years, many African governments have introduced policies and measures to support the development of the electric vehicle industry. Reuters reported last year that a report predicted that the market size of electric vehicles in Africa could reach $21.4 billion by 2027, with an average annual compound growth rate of 10.2% from 2022 to 2027.
South Africa, as the first country in Africa to introduce policies regarding the manufacturing, sales, and use of electric vehicles, is also one of the most developed countries in Africa. Therefore, it naturally becomes a key base for Chinese automakers to expand their market presence in Africa.
