Chinese carmaker targets South African market with new EV facility by end of 2027

Chinese carmaker Chery is deepening its African expansion with plans to begin production at a South African plant it is acquiring from Nissan by the end of 2027, marking a significant shift from imports to local manufacturing.

Chinese carmaker targets South African market with new EV facility by end of 2027
Chinese carmaker targets South African market with new EV facility by end of 2027

Chinese carmaker Chery is deepening its African expansion with plans to begin production at a South African plant it is acquiring from Nissan by the end of 2027, marking a significant shift from imports to local manufacturing.

  • Chery is acquiring Nissan’s Rosslyn plant in South Africa to start local production by the end of 2027.
  • The facility will be retrofitted to manufacture both internal combustion and electrified vehicles, including EVs and hybrids.
  • Chery aims to use the plant as a hub for exports to Africa and Europe, leveraging South Africa’s status as a leading automotive base.
  • This move responds to global trends, as Chinese automakers localize production to navigate tariffs and regulatory challenges abroad.

The carmaker will take over Nissan’s Rosslyn plant, which is set to be re-commissioned and retrofitted within the next 12 to 18 months.

While the acquisition cost and total investment were not disclosed, the move signals a long-term bet on South Africa as a regional automotive hub. Chery International Executive Vice President Charlie Zhang said the company is moving quickly to operationalise the facility.

We will try to modify the plant at full speed and we hope that by probably the end of 2027 we’re going to start the SOP (start of production),” Zhang said.

The plant is expected to produce a mix of internal combustion and “new energy” vehicles, including hybrids, plug-in hybrids, and fully electric models, with an eye on exports across Africa and into Europe Reuters reports.

“Electrified vehicles… could be the main products we want to produce here”

Chery aims to use the plant as a hub for exports to Africa and Europe, leveraging South Africa’s status as a leading automotive base.
Chery aims to use the plant as a hub for exports to Africa and Europe, leveraging South Africa’s status as a leading automotive base.

Chery’s push comes as South Africa strengthens its position as Africa’s leading automotive manufacturing base and begins to build momentum in the electric vehicle (EV) segment.

Government incentives, established supply chains, and access to export markets have made the country an attractive destination for global automakers looking to scale EV production.

For Chinese carmakers, expanding overseas production has become increasingly strategic. Facing potential tariffs and regulatory barriers in Western markets, companies like Chery are localising production in key regions to remain competitive while reducing export risks.

Chery’s growing footprint in South Africa reflects this approach. Since re-entering the market four years ago, the brand has become a consistent top-10 player, selling about 50,000 units annually and building a nationwide network of roughly 150 dealerships.

Chery's investment in South Africa is not only an important step in the company's globalization development, but also our long-term commitment to the economic and industrial development of South Africa,” Zhang said.

The company also plans to develop a local supplier base, reinforcing South Africa’s role as a gateway for automotive and EV expansion across the continent.