JOHANNESBURG, July 4 – China’s Chery Automobile has officially taken over Nissan’s vehicle manufacturing plant in Rosslyn, South Africa, marking a significant step in the company’s strategy to expand its manufacturing footprint across Africa.
The handover, completed on Friday, follows an agreement announced in January and paves the way for Chery to begin vehicle production at the facility in mid-2027 after investing millions of dollars in upgrading equipment, machinery and plant infrastructure.
The Chinese automaker said South Africa will serve as its regional hub for manufacturing, exports, research and development, and broader African operations as it seeks to strengthen its presence across the continent.
As part of the transition, Chery has committed to retaining all 692 employees currently working at the Rosslyn facility. The company also expects the investment to create nearly 3,000 direct and indirect jobs across manufacturing, supply chains and related industries.
Speaking during the official handover ceremony, Charlie Zhang, Vice President of Chery Auto, said, “Our long-term goal is to turn the Rosslyn plant into a complete auto centre with research and development, supply chain operations, and training, supporting Chery’s expanding presence and the goal of exceeding 100,000 annual vehicle sales in South Africa.”
The event was attended by company executives, government officials and representatives from South Africa’s automotive industry.
The Rosslyn facility will initially manufacture models from the Jetour T Series, including the Jetour T1, Jaecoo J5 and Chery Tiggo 4 sport utility vehicles. The Jaecoo J5 will be produced in both internal combustion engine (ICE) and new energy vehicle (NEV) variants.
While Chery did not disclose the total value of its planned investment, executives said the company will spend millions of dollars modernising production facilities and utilities before manufacturing begins.
During the initial production phase, expected in the third and fourth quarters of 2027, the company plans to manufacture around 15,000 vehicles.
Chery is also implementing a localisation strategy aimed at achieving 40% local content during the first phase of production. The automaker is currently assessing South African tier-one suppliers while also planning to introduce selected Chinese suppliers, particularly those specialising in electric vehicle and intelligent automotive components.
The investment reflects a broader trend among Chinese automakers, which are accelerating overseas expansion as intense competition and excess production capacity in their domestic market drive the search for new growth opportunities. Establishing manufacturing operations in South Africa is expected to strengthen Chery’s access to African markets while supporting the country’s automotive industry and export ambitions.