Historic Shift in South Africa’s Auto Industry as Nissan Sells Rosslyn Plant to China’s Chery

JOHANNESBURG – A landmark change is unfolding in South Africa’s automotive landscape as Japanese carmaker Nissan Motor Co. confirmed it will sell its long-operating manufacturing plant in Rosslyn, Pretoria, to Chinese automaker Chery SA, marking the end of nearly six decades of local production by Nissan while signalling a new phase of industrial development in the sector.

The transaction, expected to be completed by mid-2026, pending regulatory approvals, will see Chery acquire the land, buildings, stamping facilities and other manufacturing assets currently owned by Nissan.

The deal comes amid a broader restructuring of Nissan’s global operations, which includes the consolidation or closure of several plants worldwide as the company navigates financial constraints and shifting global demand.

The Rosslyn facility has been a backbone of South Africa’s vehicle manufacturing sector for more than 50 years. Since opening in 1966, it has produced an array of vehicles for both domestic use and export, including Datsun models in the 1970s, the iconic 1400/1200 series, the NP300 hardbody, and, more recently, the Navara pick-up.

READ MORE: How China’s new auto giants left GM, VW and Tesla in the dust

Under the sale agreement, production of the Nissan Navara will end in May 2026, and the plant will shift wholly into Chery’s ownership. Nissan has stated that while local manufacturing will cease, it will continue its presence in the South African market through vehicle sales and after-sales services, with several new models, including the Nissan Tekton and Nissan Patrol, set for release in 2026.

Jobs and Industrial Ripple Effects

The transition has been framed as a solution to preserve employment and maintain industrial activity in Rosslyn. Nissan and Chery have said that the majority of the plant’s current workforce will be offered employment on substantially similar terms under Chery SA, easing concerns about job losses and supporting stability for the plant’s supplier network.

“Nissan has a long and proud history in South Africa and has been working to find the best solution for our people, our customers and our partners,” said Jordi Vila, President of Nissan Africa, in a statement published by local media. “Through this agreement, we’re able to secure employment for the majority of our workforce, thereby also preserving opportunities for our supplier network.”

Nissan’s decision reflects deeper challenges the brand has faced in South Africa. After the discontinuation of the NP200, a high-volume, half-ton bakkie that had been produced at Rosslyn for 16 years, Nissan’s market share in the country declined sharply, dropping out of the top ranks of best-selling manufacturers.

READ MORE: Compact, Fuel-Efficient and Well-Equipped – The New Chery Tiggo 4 HEV

Despite investments made as recently as 2018 to modernize the Rosslyn facility, low production volumes and stiff competition from rivals such as Toyota’s Hilux, Ford’s Ranger and Isuzu’s D-Max made continued manufacturing under the Nissan banner difficult.

The sale of the Rosslyn plant also aligns with Nissan’s global turnaround strategy, which includes closing or consolidating seven manufacturing plants as part of efforts to streamline operations and cut costs.

A Strategic Opportunity for Chery

For Chery, China’s third-largest automaker by sales, the acquisition represents a strategic expansion into manufacturing on African soil. The move is expected to strengthen Chery’s presence in one of the continent’s most strategically important automotive markets and to support ambitions to serve regional demand more efficiently.

Chery’s sales presence in South Africa has been growing, with the brand gaining traction through locally imported models even before the deal. Industry watchers see the acquisition as part of a broader trend of Chinese manufacturers increasing their footprint in Africa, leveraging competitive pricing, expanding model lineups and capitalising on new trade frameworks like the African Continental Free Trade Area (AfCFTA).

While Chery has yet to announce which vehicles it will produce at the newly acquired Rosslyn facility, analysts speculate that SUVs and other passenger cars tailored to African markets may be strong candidates.

The transition also arrives at a critical moment for South Africa’s automotive industry, which has long been an anchor for manufacturing and employment. The government’s Department of Trade, Industry and Competition (DTIC) has welcomed the investment, emphasizing its importance for maintaining the sector’s competitiveness and preserving jobs.

However, the shift also raises questions about local manufacturing policy, competition with imported vehicles, and the future of automotive export strategies, particularly as legacy manufacturers adjust to global market changes and Chinese brands push for deeper industrial integration.