The Chery Tiggo 4 Cross HEV. (Image source: Chery)
Chery plans to manufacture new energy vehicles (NEVs) in South Africa, as part of a broader localisation strategy centred on its newly-acquired Rosslyn manufacturing plant.
This positions SA as the Chinese car maker’s African manufacturing, research and development (R&D), and export hub, it says.
In an e-mail interview with ITWeb, Chery says every model in its current global vehicle line-up already has an NEV equivalent, and its long-term strategy is to align SA with the company’s global electrification roadmap as local production ramps up.
The announcement follows Chery’s acquisition of Nissan South Africa’s Rosslyn production facility in northern Gauteng. The Competition Tribunal approved the transaction in June, subject to public interest commitments that include preserving jobs and increasing local procurement.
At the official Rosslyn handover earlier this month, Chery said it would invest “hundreds of millions of dollars” over the long-term to upgrade the plant and install new production equipment.
Production at the plant is expected to begin during the second half of 2027, when the first locally assembled Chery Cross rolls off the production line. Chery aims to produce 15 000 vehicles during the second half of 2027, before increasing annual output to 50 000 vehicles in 2028, it says.
While the initial production programme will focus on completely knocked down (CKD) vehicle manufacturing, Chery says the Rosslyn investment represents a broader localisation strategy that includes manufacturing NEVs in future as SA’s market develops.
CKD means the vehicle arrives in SA as individual parts and is assembled locally.
“We will manufacture some of SA’s favourites, with the first vehicle, the Chery Cross, leaving the factory in the second half of 2027. Our long-term strategy is to align with the Chery global strategy for South Africa. Every model in the current vehicle lineup currently has an NEV matched to it.”
The company’s strategy ensures SA plays an increasingly important role in Chery’s global transition towards electrified mobility, although the company has not disclosed when locally manufactured battery electric vehicles or plug-in hybrid electric vehicles will enter production.
Alongside electrification, Chery says software-defined vehicles and connected technologies will remain central to its South African product strategy.
The manufacturer already offers advanced driver assistance systems (ADAS), digital infotainment platforms and connected vehicle technologies across much of its local range.
“Specific smart mobility, connectivity and software innovations (infotainment, ADAS, connectivity suites, etc) are already available across our product range. New innovation and upgrades to current systems are ongoing. There are limits to what is on offer locally due to network infrastructure in SA.”
As mobile broadband coverage and vehicle connectivity improve, automakers are expected to introduce more cloud-connected services, over-the-air software updates, predictive maintenance capabilities and AI-powered driver assistance features.
Rather than serving only the domestic market, Chery intends to use SA as the centre of its African operations.
The company says the Rosslyn facility will underpin manufacturing, exports, R&D and regional operations as it expands across the continent.
“South Africa is central to Chery’s African ambitions. The plan is for it to become Chery’s African manufacturing, export, research and development, and operational headquarters.”
The strategy represents a significant shift in the company’s international business model, it notes.
“Chery is moving from product export to full value chain and full ecosystem international expansion, deeply engaging in regional industrial development and driving coordinated growth across upstream and downstream supply chains, with the aim of upgrading Southern Africa’s automotive industry.”
Chery has committed to retaining all 692 employees currently working at the Rosslyn facility, while supporting nearly 3 000 direct and indirect jobs across the automotive value chain.
A key pillar of the Rosslyn investment is an extensive localisation programme designed to increase South African content in vehicles manufactured at the plant.
Beyond assembling vehicles, Chery says it is already engaging suppliers as it works towards localisation targets by 2028.
“Tier one supplier surveys are underway to meet 2028 localisation targets, and a vision for a full industrial chain ecosystem.”
Although the company has not yet confirmed which EV components will eventually be produced locally, the reference to a full industrial ecosystem suggests Chery is evaluating opportunities across the automotive supply chain as production volumes increase.
Localisation has become a strategic priority for SA’s automotive sector as manufacturers prepare for the transition towards electric mobility, while seeking to preserve export competitiveness and create higher-value manufacturing jobs.
Chery’s localisation plans align with government’s long-standing ambition to position South Africa as a regional manufacturing hub for new energy vehicles. During the 2024 State of the Nation Address, President Cyril Ramaphosa said government had “decided to support electric vehicle manufacturing in our country, to grow our automotive sector which provides jobs to thousands of workers”.
Chery says the broader ambition is to transform SA from an import market into a regional manufacturing base capable of serving growing demand across Africa.
“We at Chery Group SA have a long-term vision of developing the Rosslyn plant into a comprehensive automotive hub with R&D, supply chain operations and skills development.”
