Chery Eyes South Africa for New Assembly Plant
Chery Eyes South Africa for New Assembly Plant. Chinese automotive giant Chery is evaluating plans to establish a vehicle assembly plant in South Africa, a move that could significantly boost the country’s manufacturing output, create jobs, and open new opportunities for local suppliers and service industries. The company confirmed that feasibility studies are underway as it considers how best to expand its manufacturing footprint on the continent.
Chery, which also owns the Omoda and Jaecoo brands, said South Africa has quickly become one of its most important markets. “We’re currently conducting feasibility studies in South Africa, which remains a key focus for both Omoda and Jaecoo,” the company said, adding that its growing customer base has strengthened the case for local production.
South Africa’s appetite for Chinese-made vehicles has surged, with Omoda and Jaecoo expected to sell more than 11,000 units in the local market this year. This strong performance forms part of a global trend, as Chinese automakers look to expand their assembly capacity beyond their borders to diversify risk and position themselves closer to customers.
Earlier this month, Tony Lui, CEO of Chery South Africa, said the company is engaging with several original equipment manufacturers (OEMs) as part of its assessment. He confirmed that discussions include options such as joint ventures, partnerships using existing facilities, or building a completely new plant.
A complete knocked down (CKD) operation is one of the possibilities on the table, which would allow vehicles to be assembled in South Africa using imported components. Lui noted that initial production, should it proceed, would likely focus on the Tiggo 4 compact SUV, with potential expansion into other African markets.
Chery is also exploring the idea of bringing some of its Chinese suppliers to South Africa to help meet local content requirements. “We are interested in the long-term investment in South Africa,” Lui said, adding that supplier localisation would form a key part of the company’s strategy.
The timing aligns with South Africa’s own ambitions. The country, the largest vehicle producer in Africa, launched its Automotive Masterplan in 2021 with the goal of growing annual production from 600,000 vehicles to 1.4 million by 2035. At the same time, there has been industry speculation about whether Mercedes-Benz might eventually allow another automaker to share its East London facility, although no commitments have been made.
Chery’s renewed interest marks a dramatic shift from its first, short-lived attempt to enter South Africa two decades ago. Since its relaunch in 2021 with the Tiggo 4 Pro, the brand has rapidly rebuilt its reputation. It introduced multiple SUV models in quick succession and recorded explosive growth, rising from 8,013 sales in 2022 to 16,110 in 2023, and closing 2024 with 19,971 units sold.
For South African entrepreneurs, suppliers, logistics companies, and service providers, Chery’s potential entry into local manufacturing could create fresh opportunities in an industry preparing for its next major growth phase.
