Nissan’s Strategic Shift in South Africa as Chery Takes the Wheel

Companies Nissan and Chery SA have reached an agreement over the sale of the Japanese automaker’s production facilities in Rosslyn, South Africa. The deal, expected to close in mid-2026 after regulatory approvals, involves transferring land, factory buildings, and a nearby stamping plant to the Chinese automaker’s ownership.

A key aspect of the agreement is the preservation of jobs: most of the plant’s employees will be offered employment with Chery SA under conditions similar to their current ones. President of Nissan Africa, Jordi Vila, noted that selling the plant was a necessary measure due to external factors affecting capacity utilization, yet it will help maintain employee employment and support the supplier network.

Despite selling the production site, Nissan is not exiting the South African market. The company will continue vehicle sales and services, with plans to expand its model range: in the 2026 financial year, launches of new models are expected, including the Nissan Tekton and a new Patrol.

Nissan’s strategic partnership with Chery could potentially bolster Chery’s presence in the region. Industry analysts suggest this move reflects broader trends where automakers are collaborating to streamline operations and share resources amid fluctuating global demand. Interestingly, in recent years, Chery has intensified its efforts to penetrate international markets, particularly in Africa, which has seen a surge in vehicle demand due to infrastructural developments.

South Africa remains a crucial hub for automotive businesses, offering robust market potential with established logistical capabilities to supply vehicles across the continent. As the automotive industry globally pivots towards electric and hybrid vehicles, both Nissan and Chery are expected to leverage these facilities for innovative models, possibly aligning with South Africa’s growing renewable energy resources.