Business Report Companies

Chery confirms investment in new manufacturing plant in South Africa

Ashley Lechman|Published

Chery's recent announcement to establish a manufacturing plant in South Africa signals exciting prospects for job creation and industrial growth. Discover how this strategic investment combines confidence in the local market with ambitious plans for vehicle production tailored to African consumers.

Image: Supplied

In a demonstration of its commitment to the South African market, popular automotive company, Chery South Africa, has announced plans to establish a local manufacturing plant.

The decision was unveiled at the sixth annual South Africa Investment Conference (SAIC 2026) in Johannesburg, marking a transformative step for the automaker, which has already established itself as a formidable player in the local automotive industry.

Four years after re-entering the South African automotive arena, Chery has consistently ranked among the top 10 car brands, achieving impressive annual sales of around 50,000 units.

The announcement was made by Charlie Zhang, Vice President of Chery Auto and Executive Vice President of Chery International, who emphasised the investment as a "vote of confidence" in South Africa, acknowledging the robust support from customers and the dealer network that has fuelled the company's growth.

The new plant will be located in Rosslyn, Pretoria, where it will be re-commissioned and retrofitted over the next 12 to 18 months.

The objective is to commence local vehicle production by mid-2027.

Chery plans to enhance the existing utilities and facilities to ensure the factory reaches full production capacity swiftly, thereby solidifying its operational footprint in the region.

Chery's local production strategy is set to not only create nearly 3,000 jobs across the manufacturing, supply chain, and services sectors but also retain most employees from the former manufacturer at the site.

This transition aims to ensure continuity and a seamless integration of operations.

This comes after more than 60 years of production at the Nissan Plant in Rosslyn, was sold to the Cherry Group earlier this year. 

Zhang articulated the broader implications of these developments, stating, "Chery's investment in South Africa is not just a part of our global strategy; it reflects our enduring commitment to the economic and industrial growth of the country.”

He also highlighted plans to foster a local supplier network that will bolster the South African parts industry, ultimately making the broader automotive sector more competitive.

Local manufacturing will provide Chery with tactical advantages, including improved flexibility, reduced lead times, and enhanced competitiveness, not only within South Africa but also for potential exports throughout the African continent.

“Moving from being an importer to becoming a manufacturer deepens our roots in this country," Zhang said, further asserting that this shift enables Chery to better cater to the needs of South African consumers and align its growth trajectory with the local automotive industry.

Since its market entry, Chery, representing brands such as Chery, Omoda, Jaecoo, Lepas, and ICaur, has experienced substantial growth.

The evolution towards local production is positioned as a pivotal moment, contributing to the South African government's objectives for localisation, industrialisation, and job creation within the automotive sector.

Zhang added, “Our presence in South Africa is not a fleeting venture, but rather a long-term commitment to the future. We aim to bring not only investment and innovative products but also a solid assurance of industrial collaboration and technological advancement, determined to flourish alongside South Africa.”

Follow Business Report on Facebook, X and on LinkedIn for the latest Business and tech news.

BUSINESS REPORT