Chery buys Nissan’s former Rosslyn plant near Pretoria
NAIROBI, Kenya — Chinese automakers are increasingly shifting from exporting vehicles to building them in Africa, betting that rapid urbanization, a growing middle class and supportive government policies will make the continent one of the industry’s last major growth markets.
The move is part of a strategy for coping with slowing demand at home and rising trade barriers in Europe and North America, according to an Associated Press report.
Analysts said the shift could reshape Africa’s automotive industry by creating jobs, developing local supply chains and accelerating adoption of electric vehicles. They cautioned that weak infrastructure and policy uncertainty remain significant obstacles to the expansion.
In July, Chery, China’s largest auto exporter, acquired Nissan’s former Rosslyn plant near Pretoria, South Africa. The company plans to make plug-in hybrids, battery-electric vehicles and models under its Jetour brand at the plant.
The acquisition gives Chery an established production base in South Africa as Chinese automakers look beyond export markets that are tightening in Europe and North America.