Chery Gears Up for South African Production by 2027

BusinessAutomotiveChery Gears Up for South African Production by 2027

Chinese automaker Chery is set to begin production at a newly acquired plant in South Africa by the end of 2027. The move signifies a significant expansion for the company, transitioning from an importer to a local manufacturer and investor in the South African automotive market. The facility, previously owned by Nissan, will undergo re-commissioning and retrofitting to accommodate Chery’s production goals.

Chery International Executive Vice President Charlie Zhang announced the ambitious timeline, stating that the company hopes to “start the SOP (start of production)” by the end of 2027. The Rosslyn manufacturing plant, acquired from Nissan, will be re-commissioned and retrofitted over the next 12 to 18 months. While the acquisition cost and planned investment figures were not disclosed, the move underscores Chery’s commitment to the South African market.

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The plant is slated to produce new energy vehicles, such as hybrid, plug-in hybrid, and battery electric vehicles, potentially alongside internal combustion engine models. These vehicles are anticipated for export to markets across Africa and Europe. This strategic decision aligns with the global shift towards sustainable mobility and positions Chery to capitalize on growing demand for EVs on the continent.

Chery’s investment is viewed as a vote of confidence in South Africa’s economy. The company plans to build a local supplier base, which will further strengthen the automotive ecosystem. Charlie Zhang highlighted that the project is expected to create nearly 3,000 direct and indirect jobs across manufacturing, supply chain, and services sectors. Local production is anticipated to enhance Chery’s market position by providing greater flexibility, shorter lead times, and improved competitiveness both domestically and for future exports.

Since re-entering the South African automotive market four years ago, Chery has established itself as a consistent top 10 player in local sales, averaging 50,000 units annually. The brand, along with its associated brands like Omoda, Jaecoo, Lepas, and ICaur, boasts an expanding network of 150 dealers nationwide. This local manufacturing initiative marks a significant step in Chery’s long-term commitment to the country, transitioning from an importer to a substantial local manufacturer and investor.

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