Chery Formally Takes Over Nissan's Rosslyn Factory in South Africa, Plans Africa's Chinese Auto Hub

China's Chery Automobile — the country's largest car exporter — formally took ownership of Nissan's car manufacturing plant in Rosslyn, South Africa on July 3, 2026, completing a landmark deal first announced in January and closing the book on nearly 60 years of Japanese automotive manufacturing at one of Africa's most storied production facilities. The handover marks one of the most significant moments in South Africa's automotive history and signals the accelerating advance of Chinese car brands into the African continent's most developed vehicle market.

Under the terms of the acquisition, Chery SA has purchased the land, buildings, and associated manufacturing assets of Nissan's Rosslyn facility, including a nearby stamping plant used for producing body parts such as doors. Chery has committed to retaining all 692 existing employees from the Nissan workforce, offering them positions on substantially similar terms and conditions to their current arrangements. Executives at the formal handover ceremony confirmed the company will spend millions of dollars — though a specific figure was not disclosed — upgrading and adding machinery at the plant before commencing full vehicle production, with a start date targeted for mid-2027.

What Chery Plans to Build at Rosslyn

Chery will use the Rosslyn plant to initially produce the Jetour T series of SUVs — specifically the Jetour T1, Jaecoo J5, and Chery Tiggo 4. The Jaecoo J5 will be offered in both internal combustion engine (ICE) and new energy vehicle (NEV) versions, making it one of the first locally assembled electric-capable vehicles produced at the Rosslyn site. During the ramp-up phase in the third and fourth quarters of 2027, the company expects to produce approximately 15,000 vehicles before scaling up further.

Chery Auto Executive Vice President Zhang Guibing set out an ambitious long-term vision for the site: "Our long-term goal is to turn the Rosslyn plant into a complete auto center with research and development, supply chain operations, and training, supporting Chery's expanding presence and the goal of exceeding 100,000 annual vehicle sales in South Africa." Chery has launched a program aimed at progressively moving toward 40% local content in the initial production stage and is currently surveying tier-1 suppliers in South Africa. The company also plans to bring in suppliers from China — particularly for electric and intelligent vehicle components — as it builds out the Rosslyn ecosystem over the coming years. For complete original reporting on the formal handover and Chery's production plans, see the Reuters account via Reuters.

Why Nissan Was Forced to Walk Away From Rosslyn

The sale of the Rosslyn plant represents the seventh factory closed or sold by Nissan in the past 18 months, as the Japanese automaker fights to recover from a prolonged financial crisis that has seen five consecutive quarterly net losses since 2024 — its worst sales year in more than two decades. The Rosslyn facility, which opened in 1966 with local assembly of Datsun vehicles and produced iconic models including the 1200/1400 bakkie, the NP300 Hardbody, and most recently the Navara one-tonne pickup, had been chronically underutilized after production of the popular NP200 half-tonne bakkie ended in March 2024. Only a few hundred locally built Navaras were sold in South Africa each month — far below the volumes needed to sustain the plant economically and nowhere near the numbers achieved by South African rivals such as the Toyota Hilux, Ford Ranger, and Isuzu D-Max.

Nissan Africa President Jordi Vila acknowledged the difficulty of the decision while framing the sale positively: "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. External factors have had a well-known impact on the utilisation of the Rosslyn plant and its future viability within Nissan. Through this agreement we're able to secure employment for the majority of our workforce thereby also preserving opportunities for our supplier network." Importantly, Nissan will continue to sell and distribute vehicles in South Africa through its existing network, with new model launches including the Nissan Tekton and refreshed Nissan Patrol planned for 2026.

South Africa as China's African Automotive Hub

Chery's takeover of Rosslyn is explicitly positioned as a continental strategy, not merely a single-country play. The company stated clearly in its official communications that it intends to establish South Africa as its African hub for manufacturing, exports, research and development, and regional operations — a designation that would give the Rosslyn facility a significance far exceeding its domestic South African production volumes. Chery's arrival also makes it the third Chinese brand to manufacture vehicles in South Africa, following BAIC, which opened a plant in Gqberha in 2018, and Foton, which began building the Tunland G7 in 2025 — a pattern that reflects the broader advance of Chinese automotive brands across the African continent and their growing presence in markets previously dominated by Japanese, European, and American manufacturers.

Jobs, Local Content, and What It Means for South Africa's Auto Sector

Beyond the factory transfer itself, the employment and supply chain implications of Chery's investment are significant for South Africa's broader automotive sector. The company has stated the project will create nearly 3,000 direct and indirect jobs across manufacturing, supply chains, and related services — a meaningful contribution in a country with an unemployment rate consistently above 30%. The commitment to targeting 40% local content in the initial production phase, and to actively surveying local tier-1 suppliers, suggests Chery is approaching the Rosslyn investment with genuine intent to embed itself in South Africa's existing automotive ecosystem rather than simply using the plant as an assembly point for Chinese-sourced components. The 12 to 18 month retrofit and decommissioning period before production begins will test that commitment — but the scale of Chery's stated ambitions for the site makes it one of the most consequential automotive investments South Africa has seen in years.