Multinational motor company Stellantis is preparing to start construction of its R3bn bakkie assembly plant in the Eastern Cape, the company said Tuesday.
It said the greenfields site in the Coega special economic zone near Gqeberha had been cleared in preparation for development.
Brands manufactured by the France-based Stellantis group include Alfa Romeo, Citroën, Fiat, Jeep, Opel and Peugeot.
The Coega plant, which will initially make Peugeot Landtrek bakkies, is expected to be completed next year and begin commercial production in early 2026.
Initial annual capacity is expected to be 50,000 vehicles, growing later to a potential 100,000. The latter number could include vehicles besides Landtrek.
Trade, industry & competition minister Ebrahim Patel said on Tuesday the new plant, in which government’s Industrial Development Corp (IDC) will be a junior partner, would help the South African motor industry move closer to long-term growth goals.
One of the key aims of government’s SA Automotive Masterplan is to increase annual production to 1.4-million by 2035.
In 2023, the number was 633,000. So far this year, production is down 2.29% because of reduced local and export demand.
Many analysts consider the 1.4-million target a long-shot without major investments from newcomers.
Now, there are seven mass manufacturers in SA: BMW, Ford, Isuzu, Mercedes-Benz, Nissan, Toyota and Volkswagen.
Tellingly, Patel was quoted on Tuesday by Stellantis as saying it would become the eighth — a number repeatedly used by Stellantis SA CEO Mike Whitfield.
This apparently discounts the chances of Chinese manufacturer Beijing Automotive Industry Company (BAIC), which is also building an assembly plant in Coega, being ready before Stellantis.
The first sod on the 48ha BAIC site was turned in 2016. Though an imposing factory building has since gone up, the secretive company is giving little away about when production will actually start.
Previous promised deadlines have not been met.
The Stellantis plant is intended mainly for export to the Middle East and Africa — part of the parent company’s plan to cement its presence in the region.
It is aiming for a 22% market share by 2030, mainly by increasing annual production in the region to at least 1-million.
Regional COO Samir Cherfan said Tuesday: “Construction of this plant is critical to Stellantis’s 2030 strategy. Our medium-to-long-term objective is to ensure that 90% of vehicles sold in the Middle East-Africa region are sourced from our production plants in this region.”
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