Chinese automaker Chery acquires Nissan's South Africa plant to manufacture EVs and hybrids for African markets
In July, Chinese automaker Chery acquired Nissan's former Rosslyn plant near Pretoria, South Africa, where it plans to produce plug-in hybrids, battery-electric vehicles, and models under its Jetour brand. The move is part of a broader shift by Chinese automakers from exporting vehicles to manufacturing them closer to African consumers. Analysts say the strategy is driven in part by slowing domestic demand in China and rising trade barriers in Europe and North America.
Single source · Not corroborated
Chinese automakers are accelerating a shift from exports to local manufacturing in Africa, with Chery's acquisition of Nissan's Rosslyn plant near Pretoria marking one of the most concrete steps yet in that transition. Chery, described by AP as China's largest auto exporter, plans to produce plug-in hybrids and battery-electric vehicles at the site. Other Chinese automakers, including Beijing Automotive Group (BAIC) and Great Wall Motor, already maintain assembly and manufacturing operations in South Africa.
Analysts cited by AP pointed to several structural forces driving the move. Inside China, factories are producing more vehicles than the domestic market can absorb, while export routes to Europe and North America face mounting tariffs and trade restrictions. "Onshoring production on the continent is a sound long-term investment," said Tombo Banda, managing director of CrossBoundary Energy, noting that local manufacturing helps companies navigate tariffs while positioning them near fast-growing markets.
On the demand side, AP reported that rapid urbanization, a growing middle class, and the relative affordability of Chinese brands are enabling those automakers to compete in markets historically dominated by European, Japanese, and American companies. Nick Hedley, an energy transition research analyst at Zero Carbon Analytics, noted that Africa is a net importer of refined fuels, which weighs on local currencies and budgets, making a shift to domestically produced electric vehicles a matter of national economic interest for many governments.