Chinese automotive giant Chery is actively exploring the establishment of a vehicle assembly facility in South Africa, a move that could significantly boost the country’s automotive manufacturing sector and create new employment opportunities. The company, which owns the fast-growing Omoda and Jaecoo brands, is currently conducting feasibility studies to assess the viability of local production.
Chery said in a statement:
South Africa remains a key focus for both Omoda and Jaecoo. 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.
Chery is evaluating several pathways to local manufacturing, including:
- A joint venture with an existing South African automaker
- A greenfield investment to build a new facility from scratch
- Leveraging an existing production site through acquisition or partnership
- Establishing a complete knocked down (CKD) operation, where vehicles are assembled locally from imported parts
According to Tony Liu, CEO of Chery South Africa, the company is in active discussions with original equipment manufacturers (OEMs) and expects to make a final decision within the next three to six months.
Local Market Momentum
Chery’s renewed interest in South Africa follows a period of explosive growth in the local market. Since re-entering the country in late 2021 with the Tiggo 4 Pro, Chery has rapidly expanded its footprint:
- 2014: 1,297 vehicles sold
- 2023: 16,110 units sold (101% YoY growth)
- 2024: 19,971 units sold (24% YoY growth)
- 2025 target: Up to 39,000 vehicles, nearly doubling sales
The brand now ranks fourth in passenger car sales in South Africa, ahead of Hyundai, Ford, and Kia, and trails only Toyota, Volkswagen, and Suzuki.
Why South Africa?
South Africa presents a compelling case for Chery’s manufacturing ambitions:
- It is Africa’s largest automotive producer, with a well-established industrial base and infrastructure.
- The Automotive Masterplan 2035 aims to increase annual vehicle production from 600,000 to 1.4 million units, offering incentives for local manufacturing.
- The country’s strategic location provides access to the Southern African Development Community (SADC), a regional market of 16 countries.
- Chery views South Africa as a gateway to the continent, with potential for exports to Europe and Asia
Supply Chain and Local Content
To meet South Africa’s local content requirements, Chery plans to bring in Chinese suppliers and develop partnerships with local component manufacturers. This approach aligns with the country’s push for industrialisation and job creation, and could help Chery avoid high import tariffs while improving affordability for consumers.
A New Brand on the Horizon
In addition to manufacturing, Chery is preparing to launch a new brand called Lepas in South Africa by 2026. Unveiled at the 2025 Chery Global Business Conference, Lepas is expected to target emerging segments such as electric vehicles (EVs) and lifestyle models, further deepening Chery’s commitment to the region.
Industry Implications
Chery’s potential entry into local manufacturing marks a strategic turning point for South Africa’s automotive industry. It could:
- Stimulate industrial growth
- Create hundreds of jobs
- Intensify competition in the compact SUV and EV segments
- Challenge established players like Toyota, Ford, and Volkswagen
As South Africa’s auto sector rebounds post-pandemic, Chery’s investment could help reshape the landscape, positioning the country as a hub for Chinese automotive exports and innovation.
