Chery “setting the example” for other Chinese car brands in South Africa

Nissan recently announced that Chery will purchase its Navara bakkie factory in South Africa, following years of financial difficulties.

On Friday, 23 January 2026, the company declared that it had reached an agreement with Chery South Africa regarding the acquisition of its manufacturing assets in Rosslyn.

“Subject to the fulfilment of certain conditions, including regulatory approvals, Chery SA will purchase the land, buildings and associated assets of the Nissan facilities, including of its nearby stamping plant, in mid-2026.”

The announcement came as little surprise, as Nissan has been in financial straits for years and is currently in the process of shutting down multiple factories around the world, including two in its home country of Japan.

While this is an unfortunate turn of events for an iconic brand that has maintained a manufacturing presence in South Africa for almost 60 years, the silver lining is that Chery will take over Nissan’s facility, ensuring that most of the site’s workers will find new employment.

The companies stated that the acquisition will ensure that the majority of Nissan employees are offered new positions by Chery SA on “substantially similar terms and conditions as today.”

A welcome decision

The announcement has been praised by the Motor Industry Staff Association (MISA) – one of the largest trade unions in the industry – which claimed that Chery is setting the example for other Chinese carmakers to follow in South Africa.

Over the last three years, South Africa has experienced an influx of new Chinese car brands, including Omoda, Jaecoo, Jetour, BYD, GAC, Geely, Changan, Deepal, MG, Dongfeng, Foton, and LDV.

This has sparked concerns that Chinese brands are flooding the market without making any substantial investments in the local economy.

The news that Chery will acquire Nissan’s factory to produce cars locally has therefore been met with praise by industry stakeholders.

“MISA welcomes Chery’s investment in South Africa with the acquisition of Nissan’s historic production plant in Rosslyn, Pretoria, which will offer employment to the majority of Nissan’s affected employees,” said the labour union.

“The Union has repeatedly urged new Chinese vehicle brands entering the country in 2025 to invest in establishing bigger dealership networks that will create jobs for employees negatively impacted by the closure of non-performing dealerships of traditional brands.”

It also congratulated Nissan for putting its employees’ futures first, electing to sell the factory and preserve jobs rather than close the site.

“MISA believes that the manufacturing and assembling of Chinese vehicles locally is vital for the survival of the automotive industry, including the local manufacturing of parts and components.”

“With Chery taking the lead in this regard, it will not only sustain jobs but create more employment opportunities,” said Martlé Keyter, MISA’s Chief Executive Officer: Operations.

The Minister of Trade, Industry and Competition (DTIC), Parks Tau, also welcomed the announcement that Chery South Africa would invest in the automotive sector.

In a statement published on Sunday, 25 January 2026, the Department of Trade, Industry and Competition (DTIC) confirmed that it will continue to work with Chery during the implementation phase of the acquisition process.

“The South African automotive sector remains a key anchor industry for manufacturing and job creation. This acquisition by Chery SA is subject to regulatory approvals; after which details on the investment will be shared with the public,”