Chery Acquires Nissan Plant in South Africa Amidst Chinese Automakers’ African Expansion
Chinese automaker Chery has acquired Nissan's former plant near Pretoria, South Africa, as part of a larger trend of Chinese car manufacturers shifting from exporting vehicles to producing them in Africa. This move is driven by slowing domestic demand in…
Fort Myers Naples, FL, August 12, 2026 —
Chery Automobile Co., Ltd., a Chinese manufacturer, has taken ownership of Nissan’s former automotive plant located near Pretoria, South Africa. This acquisition marks a significant step in Chery’s strategy and aligns with a broader movement among Chinese car companies to establish manufacturing bases on the African continent rather than solely relying on exports.
The shift towards localized production in Africa is influenced by several key factors. A primary driver is the deceleration of domestic demand within China’s automotive market. Concurrently, Chinese automakers are encountering increasing trade barriers and protectionist measures in Western markets, making direct exports more challenging.
Africa is emerging as a compelling growth market for these manufacturers. The continent is experiencing rapid urbanization, leading to expanding cities and infrastructure. This is accompanied by the growth of a middle class with increasing purchasing power and a greater demand for personal transportation. Furthermore, many African governments are implementing supportive policies aimed at attracting foreign investment and fostering industrial development, including the automotive sector.
The acquisition of the Nissan plant provides Chery with an established facility, potentially accelerating its production capabilities and market penetration in South Africa and the wider African region. While specific details regarding the timeline for production or investment at the new facility were not provided, the move signifies a strategic commitment by Chery to local manufacturing within Africa.
This trend of Chinese automakers investing in African manufacturing is expected to continue as companies seek to diversify their market presence and mitigate risks associated with global trade policies and domestic market fluctuations. The establishment of local production facilities can also lead to job creation and technology transfer within the host countries.
Story summarized from the original created by AP on apnews.com, see more information here.
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