Nissan to Exit South African Manufacturing as Chery Moves In, Marking a Strategic Shift in the Auto Market

Nissan Motor said on Friday it plans to sell its manufacturing assets in Rosslyn, South Africa, to Chery Automobile’s local subsidiary.

The move is understood to underline the Japanese carmaker’s deepening retreat from underperforming production hubs while highlighting the growing footprint of Chinese automakers across Africa. It is seen as a window into the pressures reshaping South Africa’s auto industry, the strategic retreat of some legacy carmakers, and the accelerating advance of Chinese manufacturers across emerging markets.

At the center of the deal is Nissan’s Rosslyn facility, a plant with more than 50 years of history that once symbolized the Japanese automaker’s long-term commitment to local manufacturing. If regulatory approvals are secured, Chery South Africa will take ownership of the land, buildings, and associated assets in mid-2026. Production of the Navara pickup truck, the plant’s sole remaining model, is expected to end in May, effectively drawing a line under Nissan’s manufacturing chapter in the country.

The sale marks another step in a painful global reset for Nissan. The company is closing or consolidating seven plants worldwide as it attempts to stabilize finances after years of weak sales, internal restructuring, and strategic missteps.

South Africa has been particularly challenging. The end of NP200 production in 2023 removed a key volume driver, while competition in the pickup segment intensified. Toyota’s Hilux, Ford’s Ranger, and Isuzu’s D-Max have tightened their grip on the market, benefiting from stronger product cycles, deeper localisation, and, in some cases, export scale.

Nissan Africa president Jordi Vila’s reference to “external factors” weighing on Rosslyn’s viability points to a mix of issues: underutilization, rising input costs, currency volatility, and a market that has become less forgiving of marginal players. While Nissan declined to disclose the plant’s capacity, industry analysts say utilization had fallen well below levels needed to justify continued investment, particularly as Nissan prioritizes capital allocation to fewer, more competitive global hubs.

Yet while Nissan is pulling back, Chery’s move in the opposite direction highlights a structural realignment. Chinese automakers are no longer content with exporting finished vehicles into Africa. They are increasingly seeking local manufacturing footprints to reduce costs, qualify for incentives, and anchor long-term growth.

Thus, acquiring Rosslyn offers a shortcut for Cherry. Building a greenfield plant in South Africa can take years, not just because of construction timelines, but due to permitting, localization requirements, and labor negotiations. Taking over an existing facility provides immediate industrial infrastructure and a trained workforce. Nissan’s commitment that most affected employees will be offered roles by Chery on similar terms is likely designed to smooth the transition and limit political and social friction.

The deal also intersects with South Africa’s automotive policy ambitions. The government has long used incentives under the Automotive Production and Development Programme (APDP) to attract and retain manufacturers, with an emphasis on exports and local value addition. A key question now is whether Chery will commit to exporting vehicles from Rosslyn, which would be crucial for maintaining economies of scale and preserving South Africa’s role as an automotive hub rather than a purely domestic assembly base.

Chery’s broader strategy suggests it might. The automaker has expanded aggressively across Africa, positioning itself as a volume player with competitive pricing and a growing portfolio that includes internal combustion, hybrid, and electric vehicles. Local production would strengthen its hand against rivals, including other Chinese brands that are currently importing vehicles duty-paid.

The transaction also carries implications for South Africa’s trade relationships. Local production can help manufacturers tap preferential trade agreements, including access to regional African markets and, potentially, the United States under the African Growth and Opportunity Act (AGOA), depending on product mix and rules of origin. For Chinese automakers facing trade barriers in Western markets, Africa increasingly offers both growth and strategic optionality.

For Nissan, maintaining a sales and service presence — with new models such as the Tekton and Patrol planned for the 2026 financial year — signals a shift to a lighter, asset-lean approach. The company is effectively betting that it can remain relevant in South Africa as an importer, even as it concedes manufacturing ground. That strategy carries risks, particularly in a price-sensitive market where locally built vehicles often enjoy cost and policy advantages.

More broadly, the Rosslyn handover reflects a changing balance of power in the global auto industry. As legacy manufacturers streamline and retrench, Chinese firms are stepping into spaces they vacate, not just with vehicles, but with capital, factories, and long-term industrial ambitions. South Africa, with its established automotive ecosystem and access to regional markets, has become a key battleground in that shift.