Chery overhauls South Africa plant as it deepens localization

Chery Automobile has launched an overhaul of a manufacturing plant in Rosslyn, South Africa it acquired from Nissan Motor under a deal that was announced in January, reports Caixin. The company is targeting production in the facility by mid-2027 with an annual capacity of 50,000 vehicles.

South Africa is reportedly considering raising its tariff rate on China-made vehicles from 25% to 50% to protect its domestic auto manufacturing industry. Chery’s local plant and localization commitments are expected to help the company avoid the impact of higher tariffs and other potential trade barriers.

The factory upgrade highlights how the Chinese carmaker is ramping up its localization efforts in the African country to sidestep rising trade barriers, a strategy that is increasingly vital for Chery as it relies heavily on exports to offset a severe sales slump in its home market.