Chery SA in talks to 'take over' an existing factory in SA

The head of Chery South Africa has confirmed the Chinese firm is in discussions to potentially “take over” another automaker’s already established local factory…

Chery SA confirms it is in discussions with “several OEMs” in Mzansi
Options include building a new plant or taking over an existing one
Local facility would also allow Chery to export into the rest of Africa

The head of Chery South Africa says the Chinese company is keen to start manufacturing vehicles locally, revealing that the firm is “in discussions” to potentially “take over” another automaker’s local factory.

Tony Liu, Chief Executive Officer at Chery Group South Africa, made the comments during an interview conducted in Cars.co.za’s custom-built podcast booth at Naamsa’s recent South African Auto Week 2025 in Gqeberha in the Eastern Cape.

“What is going to be a very big focus for us now is to drive the feasibility studies [into] local manufacturing here in South Africa. So, [we are in] discussions with government officials, Naamsa and relevant stakeholders, including several OEMs [original equipment manufacturers], about building a plant or taking over a plant from an existing OEM,” he said.

Of course, since building a new facility from scratch would be an extremely costly and time-intensive process, purchasing an existing plant – or even sharing one with its original owner – appears to be the route the Chery Group is most likely to take.

*Chery SA is seemingly eyeing an existing factory in SA.*

“One of the key discussions is how are we going to save jobs for South Africa? As Chery, there’s a lot of value that we can bring to South Africa’s automotive industry. We are working very closely with the DTIC [Department of Trade, Industry and Competition] and with Naamsa. So, stayed tuned. There is going to be something exciting, I think, for Chery,” Liu said.

South Africa currently boasts 7 major new-vehicle production facilities – BMW (Rosslyn), Ford (Silverton), Isuzu (Struandale), Mercedes-Benz (East London), Nissan (Rosslyn), Toyota (Prospecton) and Volkswagen (Kariega) – along with semi-knocked down (SKD) assembly plants such as Mahindra’s facility in Durban and BAIC’s factory in Gqeberha.

*Chery returned to South Africa in late 2021.*

Though Liu did not confirm with which OEMs Chery is currently in discussions, it’s worth keeping in mind a Reuters report from May 2025 claimed Nissan’s Rosslyn plant was on the beleaguered Japanese automaker’s list of 7 production facilities set to close within the next 2 years. In addition, a September 2025 report from Bloomberg suggested Mercedes-Benz was considering allowing another automaker to share its East London plant.

Meanwhile, Liu pointed out that a facility in South Africa would allow Chery to service not only the local market but also the rest of the continent: “From a strategic positioning point of view, we think South Africa is the right [place] for a manufacturing hub as a gateway to Africa”.

Chery Tiggo 4 Pro — *The Tiggo 4 is Chery’s top-selling model locally.*

“Very important is how we are going to create local content and even export to the African continent. So, we are in discussions with some of the government officials to enable the local supply chain, because once we have a factory here, I think we can bring a lot of suppliers here.

“And also how [the suppliers can] supply the whole industry instead of only one OEM like ourselves. I think Chery has the capacity to do that. In Wuhu city, for example, we have almost 2 000 suppliers. So, it is going to be a very big focus in the next few years for us,” Liu said.

Chery returned to South Africa in late 2021. The company has since carved out a place for itself on the list of SA’s 10 best-selling automotive firms, while also launching sub-brands such as Omoda & Jaecoo (with the likes of Lepas and iCaur set to join the fold in 2026).

Frequently Asked Questions (FAQ)

Q: Is Chery planning to build a new factory or take over an existing one in South Africa?

A: Chery is currently in discussions regarding both options: building a new plant from scratch or taking over (or sharing) an existing factory from another original equipment manufacturer (OEM). Purchasing an existing facility is mentioned as the more likely route, as building a new one would be more costly and time-intensive.

Q: Who is Chery South Africa in discussions with regarding local manufacturing?

A: Chery South Africa is in discussions with government officials (including the DTIC), Naamsa, relevant stakeholders and several original equipment manufacturers (OEMs). While specific OEMs were not confirmed, speculative reports have mentioned Nissan and Mercedes-Benz as possibilities.

Q: What is the strategic goal of establishing a manufacturing hub for Chery in South Africa?

A: The primary strategic goal is to use South Africa not only to service the local market but also as a manufacturing hub and “gateway to Africa”, allowing Chery to export vehicles to the rest of the continent. Establishing a local facility is also intended to create jobs, enable a local supply chain and increase local content.