China's Chery aims for 2027 start at newly acquired South Africa plant

A view shows new cars produced by Chinese automobile manufacturer Chery, in the parking lot of the Sollers plant in Vladivostok, Russia, 15 October 2023. Reuters/Tatiana Meel

Four years on from re-entering South Africa's automotive market, Chery has become a consistent top 10 player in local sales, with an average of 50,000 units sold annually, along with a rapidly expanding network of 150 dealers nationwide.

"We will try to modify the plant at full speed, and we hope that by probably the end of 2027, we're going to start the SOP (start of production)," Chery International executive vice president Charlie Zhang said on the sidelines of a conference.

The Rosslyn manufacturing plant will be re-commissioned and retrofitted over the next 12 to 18 months, Zhang said, without disclosing the acquisition cost or planned investment.

Chery is considering making "new energy" vehicles at the plant alongside internal combustion engine models, he said, in anticipation of exporting to markets across Africa and Europe.

"Electrified vehicles, including hybrid vehicles, plug-in hybrid vehicles, and battery vehicles, could be the main products we want to produce here," Zhang said on Tuesday, noting the plant will have the capability and capacity to manufacture multiple models.

Chery also plans to build a local supplier base.

Chinese automakers seeking global growth are building more car plants overseas to protect themselves as foreign regulators consider imposing measures against imports of Chinese vehicles.

Zhang said Chery’s investment reflects confidence in South Africa and stems from the "unwavering support" of the company's local customers and dealers.

Local production will strengthen Chery's market position by offering greater flexibility, shorter lead times and improved competitiveness, the company said.

"Chery's investment in South Africa is not only an important step in the company's globalisation development, but also our long-term commitment to the economic and industrial development of South Africa," Zhang said.