Chery wants local suppliers for its new factory in South Africa

The Chery Group has taken a major step towards building a localised automotive supply chain ecosystem to support its new factory in South Africa.

The Chinese carmaker acquired Nissan’s production plant in Rosslyn, Gauteng, in July 2026, for an undisclosed sum.

Nissan previously made several vehicles at the site, including the NP200 and Navara bakkies, but the company has been in financial trouble for years and is currently selling or shutting down factories worldwide.

Chery has since taken over the Rosslyn plant, where it intends to produce multiple vehicles across its family of brands, including Chery, Lepas, Jaecoo, and Jetour.

To this end, the company is now preparing the site to produce its new selection of vehicles, with the first units expected to roll off the assembly line in mid-2027.

It explained that during the “ramp up” period (Q3 and Q4 2027) the planned production goal will be 15,000 units. However, once the factory is fully operational, production will reach up to 50,000 units per annum.

Chery aims to establish a localised supply chain to support the factory. This week, the carmaker, in collaboration with Wuhu Chery Technology (Chery Tech), held a supplier investment conference at the Automotive Industry Development Centre in Rosslyn.

“Hosted under the theme “Engineering the Future of Supply”, the conference brought together public sector leaders, industry associations, international component manufacturers and local suppliers to support Chery’s long-term manufacturing and localisation ambitions following the company’s recent acquisition of its manufacturing facility in Rosslyn,” said the company.

It explained that a key objective was to introduce a Chinese delegation of 23 Chery Automobile component suppliers to South African suppliers and industry stakeholders.

The engagement allowed the delegation to assess local capabilities, explore investment opportunities, and identify potential partners.

“Our goal is to build an integrated supply chain ecosystem that supports sustainable localisation and drives technological growth,” said Tony Liu, CEO of Chery South Africa.

A multi-phase expansion strategy for South Africa

Junfeng Shen, Assistant General Manager of Chery Tech, explained that this formed part of Phase 1 of the company’s global “3+1” market expansion strategy in South Africa.

He said the initial localisation phase will focus on intelligent electronics, body and chassis systems, interior and exterior trim, and specialised integration modules.

Chery Tech and its affiliate enterprises presented several technologies, including advanced cockpit and ADAS systems, high- and low-voltage wiring harnesses, chassis and aluminium components, thermal management systems, braking technologies, smart seating, fuel cell pumps and electrolyser technologies.

One of the key topics at the conference was new energy vehicle (NEV) components, as Chery intends to produce hybrid vehicles at the factory.

It noted that South Africa needs to reduce its dependence on imports and create opportunities for local manufacturers to participate in the growing NEV economy.

To this point, the delegates discussed the development of a local battery value chain, as South Africa’s mineral wealth presents an opportunity for advanced battery manufacturing.

Local stakeholders who appeared at the conference included representatives from Tshwane Automotive Special Economic Zone, Gauteng Growth and Development Agency, Department of Trade, Industry and Competition, and Industrial Development Corporation.

These government stakeholders outlined incentives, infrastructure, and investment support that could be provided to help suppliers establish local operations.