The Nissan plant in Rosslyn has been sold to Chinese manufacturer Chery. The new plant will be located in Rosslyn, Pretoria, where it will be re-commissioned and retrofitted over the next 12 to 18 months. The objective is to commence local vehicle production by mid-2027.
Image: Timothy Bernard/African News Agency (ANA)
The Competition Commission has recommended approval of Chinese vehicle manufacturer Chery’s proposed acquisition of Nissan South Africa’s Rosslyn manufacturing plant in Pretoria, a transaction that could mark a significant boost for local vehicle production and investment.
The deal involves the acquisition by Chery International (Chery SA) of the assets related to Nissan South Africa’s manufacturing operations at the Rosslyn plant, subject to conditions relating to employment and local procurement.
The recommendation comes after the Commission concluded that the transaction is unlikely to substantially lessen or prevent competition in any market.
Chery SA is controlled by Chery Overseas Industrial Investment Co., Ltd, which is in turn controlled by Chery Automobile Co., Ltd. Collectively, the Chery group is a major global automotive manufacturer specialising in the development, production and export of passenger and commercial vehicles, including sport utility vehicles (SUVs), sedans and new-energy vehicles.
The company currently operates in more than 80 countries and has established a growing presence in South Africa through the import and distribution of Chery-branded vehicles. However, it does not currently manufacture vehicles locally and relies entirely on imported products to serve the domestic market.
The acquisition of the Rosslyn facility represents a strategic shift for the automaker as it seeks to establish a manufacturing footprint in South Africa.
Earlier this year, Charlie Zhang, vice president of Chery Auto and executive vice president of Chery International, emphasised the investment as a "vote of confidence" in South Africa, acknowledging the robust support from customers and the dealer network that has fuelled the company's growth.
The new plant will be located in Rosslyn, Pretoria, where it will be re-commissioned and retrofitted over the next 12 to 18 months. The objective is to commence local vehicle production by mid-2027.
According to the Commission, Chery intends to use the facility to produce selected SUV models locally, potentially strengthening South Africa’s automotive manufacturing sector and supporting localisation efforts within the industry.
The target asset, Nissan South Africa’s Rosslyn manufacturing plant, has been a key component of the country’s automotive industry for at least 60 years. The facility was most recently used to manufacture Nissan Navara pickup trucks.
However, Nissan South Africa announced in January this year that it would cease vehicle manufacturing operations in the country, citing external factors that had negatively affected plant utilisation levels and undermined the facility’s long-term viability.
The planned exit raised concerns about the future of the plant and the potential impact on jobs and the broader automotive value chain.
The proposed acquisition by Chery is expected to provide a new lease on life for the facility and preserve manufacturing capacity in one of South Africa’s most important automotive hubs.
The Competition Commission said its assessment found no significant competition concerns arising from the transaction.
“The Commission is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any market,” it said.
Public interest considerations featured prominently in the Commission’s review, particularly given the importance of the automotive sector to employment, industrial development and supplier networks.
To address these concerns, the merging parties have committed to conditions relating to employment and local supply.
While details of the conditions have not yet been disclosed, such undertakings typically seek to protect jobs, support local procurement and promote broader industrial development objectives.
The transaction now awaits consideration by the Competition Tribunal, which will make the final decision on whether to approve the deal.
If approved, the acquisition could strengthen South Africa’s position as a regional automotive manufacturing hub while supporting government efforts to attract foreign direct investment and expand local vehicle production.
The deal also highlights the growing role of Chinese automakers in South Africa’s automotive market. Chery has emerged as one of the fastest-growing vehicle brands in the country, benefiting from rising consumer demand for competitively priced SUVs and passenger vehicles.
BUSINESS REPORT