Chery plans SA production with 3,000 jobs at Rosslyn plant

Carmaker Chery expects 3,000 jobs will be created as it moves to manufacture its vehicles in South Africa.

This comes as Chinese brands warm to the idea of producing cars in Africa’s most industrialised economy.

The company, which will retrofit and recommission Nissan’s erstwhile plant in Rosslyn, Pretoria, over the next 12 months, expects production to resume in mid-2027. Part of the project plans to upgrade the utilities and facilities to quickly bring the factory to full production capacity.

Chery, which sells an average 50,000 units annually in South Africa, outbid Chinese rival GWM for the Nissan plant as the Japanese carmaker scaled back some of its operations as part of worldwide cost-cutting measures.

It owns popular brands such as Omoda, Jaecoo, Lepas and iCar.

“We are bringing not only investment and products, but also confidence in industrial co-operation, investment in technological development, and a firm determination to grow together with South Africa,” said Charlie Zhang, vice-president of Chery Auto, on the sidelines of the investment conference held by the government this week.

“Moving from an importer to a manufacturer deepens our roots in this country. It allows us to better serve the South African and broader African market, enhances consumer confidence through local presence, and aligns our future growth directly with the growth of the local automotive industry.”

It was not immediately clear if the plant would produce the more high-value completely knocked-down (CKD) cars or semi-knocked-down (SKD) versions.

The company’s spokesperson in South Africa said she cannot respond to specific questions “at this stage”.

Kaamil Alli, spokesperson for minister of trade, industry & competition Parks Tau, welcomed the move by Chery, saying the investment shows confidence in the South African vehicle sector and the market as a preferred market of choice for new original equipment manufacturers (OEMs).

“We are working on growing the autos sector in line with the ambitions of the South Africa Auto Masterplan. We are engaging with the sector as it transitions globally,” Alli said.

“We also understand the importance of localisation in the sector, which has the capacity to create jobs. This is always an important part of the conversations we have with OEMs.”

The latest car sales data from the National Association of Automobile Manufacturers of South Africa shows car imports surged 30% from January to November 2025 compared with the prior year, with 374,594 cars having made their way to the country’s shores last year, not far off the 408,000 units exported, mainly to Europe.

Chinese and Indian cars have become major factors in the domestic market, with some of the country’s biggest showrooms reporting that Chinese brands now account for nearly half of sales as vehicle ownership pivots from aspirational to pragmatic, with cash-strapped consumers looking for value rather than prestige.

South Africa’s car manufacturing industry accounts for about 22.6% of the country’s manufacturing output and represents about 460,000 highly skilled, direct jobs in the formal sector supply chain.

Siyabonga Mthembu, motor sector leader, BDO South Africa, said complete knocked-down manufacturing is the backbone of South Africa’s vehicle ecosystem, while semi-knocked-down assembly delivers limited developmental impact.

“Chinese and Indian brands have rapidly expanded market share, largely through fully built-up imports or SKD assembly. If these brands transition into CKD local manufacturing, the benefits are significant,” he said.

“Without progression from SKD to CKD, South Africa risks becoming a sales market rather than a manufacturing hub, hollowing out industrial capacity.

“The domestic market is increasingly driven by affordability rather than brand loyalty. Chinese and Indian OEMs have filled this gap with competitively priced vehicles, keeping overall new‑vehicle sales above 500,000 units in 2024 despite weak household income growth.”