Chinese automaker Chery buys Nissan plant in Africa as EV production shifts to new markets

Chinese automaker Chery has acquired Nissan’s former Rosslyn plant near Pretoria, South Africa, marking a pivotal step in the global shift toward electric vehicle (EV) production in Africa. This acquisition comes as Chinese automakers increasingly prioritize local manufacturing over traditional export strategies, aiming to capitalize on Africa’s rapidly evolving automotive landscape. The move underscores a strategic realignment driven by slowing domestic demand in China, rising trade barriers in Western markets, and the continent’s potential as a key growth area for the industry. The deal was announced in July, with Chery, China’s largest auto exporter, planning to produce plug-in hybrids, battery-electric vehicles, and models under its Jetour brand at the site. This follows similar efforts by other Chinese automakers such as Beijing Automotive Group (BAIC), which operates a manufacturing and assembly facility in Gqeberha (formerly Port Elizabeth), South Africa, and Great Wall Motor, which has established localized assembly and component distribution capabilities. These initiatives reflect a broader trend of Chinese firms seeking to build closer ties with African consumers through direct manufacturing, reducing reliance on imports and enhancing market access. Africa’s automotive sector is undergoing transformation, fueled by factors including rapid urbanization, a growing middle class, and increasing government support for sustainable mobility. Experts highlight several African nations, such as South Africa, Morocco, Kenya, Ethiopia, and Ghana, as prime candidates for further Chinese EV investment. These countries offer varying advantages, including existing industrial infrastructure, favorable policies, and improving electricity networks. Morocco, in particular, stands out due to its geographic proximity to European export markets, while Zimbabwe’s substantial lithium reserves could play a crucial role in supporting battery supply chains. Local manufacturing promises multiple benefits, including reduced vehicle costs by bypassing import duties and fostering investment in charging infrastructure, component production, and battery manufacturing. Already, Africa’s first large-scale battery gigafactory is set to be built in Morocco, signaling a growing commitment to green technology. The affordability of Chinese brands is also playing a key role in capturing markets traditionally dominated by European, Japanese, and American automakers. As noted by Hiten Parmar, executive director of The Electric Mission, African consumers are increasingly turning to new vehicles due to the relative affordability of Asian brands, offering greater accessibility compared to used car markets. Energy transition analysts emphasize the economic and environmental significance of this shift. Nick Hedley of Zero Carbon Analytics points out that Africa’s fast-growing population and expanding middle class present a natural market for affordable electric vehicles. He highlights how switching to local electric cars reduces dependency on imported fuel, which drains foreign reserves and strains national budgets. “This is in African countries’ national interest,” he said, adding that as EVs become more competitive, their adoption will likely accelerate, benefiting Chinese automakers in the process. Internally, China faces challenges that are driving this outward expansion. Tombo Banda of CrossBoundary Energy notes that Chinese factories are producing more vehicles than the domestic market can absorb, while exports encounter increasing regulatory hurdles. Onshoring production in Africa is viewed as a strategic move that allows companies to navigate tariffs and position themselves nearer to emerging markets. Additionally, the African Union’s Green Minerals Strategy seeks to boost domestic processing of critical minerals, potentially increasing the availability of raw materials needed for EV production. Meanwhile, individual countries are taking distinct approaches to encourage local EV manufacturing. Ethiopia has implemented a ban on fossil fuel-powered vehicle imports and is promoting domestic production through lower import duties on locally assembled EVs. South Africa, on the other hand, offers production incentives such as customs duty rebates to stimulate local manufacturing activity. These measures collectively signal a growing appetite for sustainable mobility solutions across the continent.