Chery South Africa Manufacturing Expansion Advances with Nissan Plant Acquisition

The Competition Commission of South Africa has recommended that the Competition Tribunal approve the proposed acquisition of manufacturing assets by Chery SA from Nissan SA, subject to certain conditions. The transaction centers on the Manufacturing Plant located in Rosslyn, Gauteng, which is currently owned and controlled by Nissan SA. The recommendation marks a significant step in the transfer process and could support the expansion of local vehicle production activities within the South African automotive sector.

At present, Chery SA operates in South Africa as an importer and distributor of Chery-branded passenger vehicles. The company does not maintain local manufacturing operations and relies entirely on imported vehicles to serve customers across the country. Through the proposed acquisition, Chery SA plans to strengthen its presence in the market by utilizing the Rosslyn facility to manufacture selected Chery sport utility vehicle models locally, reducing its dependence on imports and expanding its operational footprint.

The opportunity emerged following Nissan's strategic decision announced in January 2026 to discontinue vehicle manufacturing activities in South Africa. According to Nissan, external factors affecting plant utilization levels and long-term operational viability contributed to the decision to exit local manufacturing. The Rosslyn facility subsequently became available for potential acquisition, creating an opportunity for another automaker to establish or expand production capabilities at the site.

After reviewing the proposed transaction, the Competition Commission concluded that the acquisition is unlikely to substantially lessen or prevent competition in any relevant market. This assessment supported the recommendation for approval by the Competition Tribunal. If finalized, the transaction would enable Chery SA to begin local production operations while providing a new future for the Rosslyn manufacturing facility following Nissan's planned exit from vehicle manufacturing in the country.

Frequently Asked Questions

Why is Chery SA acquiring Nissan SA's manufacturing plant in South Africa?
Chery SA intends to expand its South African operations by establishing local vehicle manufacturing capabilities. The acquisition would allow the company to use the Rosslyn manufacturing facility in Gauteng to produce selected Chery SUV models domestically rather than relying entirely on imported vehicles. This move supports Chery's long-term growth strategy in South Africa while creating a productive future for the facility after Nissan's planned withdrawal from local vehicle manufacturing operations.

What did the Competition Commission conclude about the transaction?
The Competition Commission of South Africa determined that the proposed acquisition is unlikely to substantially lessen or prevent competition in any relevant market. Based on its review, the Commission recommended that the Competition Tribunal approve the transaction subject to specific conditions. The assessment indicates that the ownership transfer is not expected to create significant competitive concerns while enabling continued industrial use of the manufacturing facility and supporting future automotive production activities.