Chery's South Africa Plant Buy Signals Chinese EV Push Into Africa

Chinese automakers are increasingly moving beyond exporting vehicles to building them in Africa, betting on the continent's rapid urbanization, growing middle class, and supportive government policies to make it a key growth market. This strategy is partly a response to slowing domestic demand and rising trade barriers in Europe and North America.

In July, Chery, China's largest auto exporter, acquired Nissan's former Rosslyn plant near Pretoria, South Africa. The facility is slated to produce plug-in hybrids, battery-electric vehicles, and models under its Jetour brand. This move reflects a broader trend of manufacturing closer to African consumers rather than relying solely on imports.

Other Chinese firms are also establishing a presence. Beijing Automotive Group (BAIC) operates a facility in Gqeberha, South Africa, while Great Wall Motor has localized assembly and component distribution capacity. Analysts suggest this shift could reshape Africa's automotive industry by creating jobs, developing local supply chains, and accelerating EV adoption, though weak infrastructure and policy uncertainty remain hurdles.

Countries like South Africa, Morocco, Kenya, Ethiopia, and Ghana are considered well-positioned to attract Chinese EV investment due to their industrial capacity, policies, or electricity infrastructure. Morocco's proximity to European markets and Zimbabwe's lithium reserves are additional draws. Local manufacturing could lower vehicle prices by avoiding import duties and stimulate investment in charging infrastructure and battery production. Africa's first large-scale battery gigafactory is planned in Morocco.

"Africa has become known as the next frontier for the automotive market," said Hiten Parmar, executive director of The Electric Mission. The affordability of Asian brands is widening access to new vehicles for consumers who have historically relied on used cars.

Nick Hedley of Zero Carbon Analytics noted that Africa's growing population and middle class create a natural market for affordable EVs, while helping governments reduce dependence on imported fuel, which drains foreign reserves. "Switching to local electric cars for transportation is in African countries' national interest," he said.

The shift is also driven by economics in China, where factories produce more vehicles than the domestic market can absorb. "Onshoring production on the continent is a sound long-term investment," said Tombo Banda of CrossBoundary Energy, noting it helps companies navigate tariffs and position closer to fast-growing markets.

Policy approaches vary. Ethiopia has banned imports of fossil fuel-powered vehicles and offers lower duties on domestically assembled EVs. South Africa uses production incentives like customs duty rebates and tax breaks to encourage electric- and hydrogen-vehicle manufacturing.

Banda cautioned that converting factories designed for internal combustion engines is complex and requires long-term certainty on taxes and industrial policy. "Without clean, reliable, affordable electricity, forget about operating EVs," he said. "Without sufficient, well-located charging, forget about functional EVs."