European car company Stellantis is investing R3 billion to establish a new car factory in South Africa.
The facility will be located in the Eastern Cape outside Gqeberha (Port Elizabeth) and is expected to be operational by early 2026.
A Stellantis representative confirmed to TopAuto that the site is on the verge of a major development, but remained coy about what exactly could be happening.
Why South Africa
Stellantis is one of the world’s largest carmakers by volume and represents no less than 14 different brands, eight of which are available in South Africa including Abarth, Alfa Romeo, Citroen, Fiat, Jeep, Maserati, Opel, and Peugeot.
The manufacturer has ambitious plans for South Africa, as it is currently reshuffling its eight marques to each fill a different niche, and the new factory is set to play a big role in its expansion.
Case in point is the model that Stellantis has chosen to build here, as the Peugeot Landtrek is set to become South Africa’s newest locally-made bakkie.
Most of the Opel and Peugeot models on sale here are rebadged versions of one another, and Stellantis is trying to fix this by shifting Peugeot towards the light commercial sector while Opel will carry on with the passenger segment owing to its greater brand recognition.
TopAuto previously reached out to Stellantis to ask why the Landtrek was chosen, given that it has not been the most popular of entries in its time on the market thus far.
“Based on the strong and consistent automotive policy and the well-established pickup component supply base in South Africa and potential of the pickup market in Africa, we felt South Africa is ideally suited for our new industrial operation in the region,” said Deidre Du Plessis, Head of Corporate Communications at Stellantis South Africa.
The Peugeot ties into a much broader strategy for Stellantis that aims to improve its sales in the Middle East and Africa (MEA) region, and a bakkie was seen as the best choice for this purpose.
Consequently, the new Eastern Cape factory will supply not only South Africa but also the entire MEA region, as approximately 60% of the pickups made here will be for export.
To broaden the appeal of the French bakkie, Peugeot is planning to introduce a more affordable single-cab and double-cab workhorse for businesses, which will complement the existing roster of two units better suited for private users.
The factory will be located in the Coega Special Economic Zone outside Gqeberha, and Stellantis has already begun the preparations for the building site.
The last announcement came in May when the automaker announced that it had completed an environmental impact study and had started relocating all the nearby flora and fauna.
TopAuto got in contact with Stellantis for an update on the site’s progress, and whether it had made any major developments or encountered any delays.
A representative replied saying that the project “is on the cusp of a new development” and that the company “cannot put anything on the record right now.”
Considering it recently cleaned the property on which the facility will be located, it’s likely the contractor should soon break ground on the first building, though this remains speculative until Stellantis gives us the next update.
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