Chinese carmaker Chery is weighing a move to start assembling vehicles in South Africa, part of an aggressive global expansion strategy that could bring fresh jobs and investment to the local car industry.
The company confirmed it is running feasibility studies on building or partnering on a local assembly plant.
The move is a sure sign that its long-term ambitions in South Africa are growing alongside demand for Chinese-made cars.
Chery wants to put down roots in SA
“We’re currently conducting feasibility studies in South Africa, which remains a key focus for both Omoda and Jaecoo,” Chery said.
“The country plays an important role in our broader global strategy, and we’re carefully assessing opportunities to expand our presence and meet the growing local demand.” the Chinese carmaker also revealed.
Chery, which owns the Omoda and Jaecoo brands, has quickly become one of the fastest-rising names in South Africa’s auto market.
Sales of the two marques are expected to exceed 11 000 units this year, BusinessTech reported, underscoring how far Chinese vehicles have come from niche players to mainstream contenders.
At a recent automotive conference, Tony Lui, CEO of Chery South Africa, also stated that the company has already begun discussions with several local manufacturers.
“We are in discussions with several existing OEMs,” Lui told Reuters.
What’s planned for South Africa?
Among the ideas on the table: partnering with an existing carmaker, developing a greenfield plant from scratch, or taking over an underused production line.
A complete knocked down (CKD) model, where vehicles are assembled from imported components, is also being considered, a common route for automakers entering new markets.
Lui said the company’s initial focus would likely be on building the Tiggo 4 compact SUV for South African buyers, with a longer-term goal of exporting vehicles to the rest of the continent.
For South Africa, which has worked to attract more manufacturing investment into its auto sector, Chery’s plans could mark another vote of confidence. For Chery, it’s about solidifying a base in one of Africa’s most competitive and promising markets.
