South Africa’s newest car factory will produce more than one vehicle, despite previous reports suggesting otherwise.
Back in 2023, Stellantis announced its plans to construct a new R3-billion facility in the Coega Special Economic Zone on the outskirts of Gqeberha in the Eastern Cape.
Stellantis, for those who are unfamiliar, is the parent company of several carmakers, including Alfa Romeo, Citroen, Jeep, Opel, and Peugeot, giving it a wide array of vehicles to choose from for its new site.
The company initially planned to produce the Peugeot Landtrek, a midsize bakkie, to expand its presence in markets across Africa and the Middle East.
However, during the recent Naamsa AutoWeek held in Gqeberha, Stellantis South Africa managing director Mike Whitfield revealed that the company is planning to introduce multiple assembly lines in response to changing market conditions.
“The market has changed so dramatically (since 2023). We believe that just having a pure pickup plant is not as viable,” he told Reuters on the side of the conference.
“We are looking at adding additional products to the plant.”
Whitfield explained that the sub-Saharan market is rapidly evolving thanks to improving road infrastructure and an influx of new and affordable brands, which is reshaping consumer preferences.
“Now, if we look at the new entrants coming from Asia, both parts of Asia – Thailand, India, China – there’s a significant change in the competitive landscape of pickups.”
“People have access to more affordable vehicles.”
He noted that market growth in the auto sector is not being driven by bakkies, but rather by smaller vehicles.
Unfortunately, the company has not revealed which cars it plans to add to its Eastern Cape factory, as Whitfield said that they will only be able to determine the final product mix at the end of this year.
Possible options
Based on what’s been said so far, our educated guess is that Stellantis may consider adding a smaller passenger car to its facility to cater to the need for more affordable models.
Looking at Stellantis’s existing portfolio, the marque that best suits this niche is Citroen, which has repositioned itself as an entry-level car brand in South Africa over the last two years.
The Citroen C3 and C3 Aircross are two of the cheapest models in their respective segments, costing just R254,500 and R281,500, respectively.
The majority of cars sold in South Africa cost less than R400,000, and entries like the R229,900 Nissan Magnite, R269,900 Chery Tiggo 4 Pro, and R259,900 Mahindra XUV 3X0 have all seen great success here.
All of these models are imported, too, which would give Stellantis a significant advantage if it can produce a locally-made alternative at a competitive price.
Another possibility is that Stellantis could produce the Opel Corsa or Peugeot 208 to compete with models like the VW Polo or Hyundai i20, but this option seems far less likely.
A Stellantis representative previously told TopAuto that it had considered both of these cars, but that the company already had sufficient production capacity from its other factories to meet global demand.
A work in progress
Early development began in May 2024 when the company started prepping the 320-hectare site for construction by conducting environmental impact studies and relocating the area’s flora and fauna.
Later that year, the automaker declared that it had begun construction on the main platform and that it would appoint a contractor for the top structure once all registration conditions were met.
Coega Executive Manager of Business Development, Asanda Xawuka, also confirmed that all regulatory approvals have been received, including the Department of Employment and Labour’s work permits and Site Development Plan approvals from the local municipality.
“The project is receiving support from the Department of Trade, Industry, and Competition (DTIC); hence service providers have been appointed as mentioned above, with funding duly approved by the DTIC earlier this year,” she said.
Stellantis has not provided any new updates on the site’s progress, though Whitfield did state that they are aiming to start production in the second half of 2027.
The completed factory will assemble vehicles from complete knocked down kits, which will be sold locally and exported to regional markets.
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