Chery to Manufacture Cheapest SUV in South Africa

Chery to Manufacture Tiggo 4 Cross at New Rosslyn Plant

Chery South Africa has officially inaugurated its new manufacturing facility in Rosslyn, Pretoria, marking the company’s strategic transition from a vehicle importer to a local manufacturer. The plant, acquired from Nissan, will serve as the production hub for the Tiggo 4 Cross, which is currently among the most affordable SUVs in the South African market.

Production Plans and Model Lineup

Production at the Rosslyn facility is scheduled to commence in the second half of 2027. The company has confirmed that the Tiggo 4 range—specifically the Tiggo 4 Cross—will be the first model to roll off the assembly line. Chery plans to manufacture both internal combustion engine (ICE) and hybrid (HEV) derivatives of the vehicle. The Tiggo 4 range is a cornerstone of Chery’s local market performance. During the first half of the year, the range saw 11,322 units sold, representing a 39% year-on-year growth and establishing it as the second-best-selling passenger vehicle line in the country for that period. Currently, the Tiggo 4 Cross is positioned in the market with prices ranging from R279,900 to R469,900. Beyond the Tiggo 4, Chery’s sister brand, Jaecoo, has confirmed that its J5 compact SUV will also be produced at the Rosslyn site. Additionally, the company is conducting feasibility studies regarding the potential local production of a light commercial vehicle, specifically a bakkie, though no final decision has been reached.

Economic Impact and Employment

The establishment of the Rosslyn plant is expected to generate significant local economic activity. Chery has committed to retaining all 692 employees previously associated with the Nissan operation. Furthermore, the company anticipates that the ramp-up of operations will create approximately 3,000 direct and indirect job opportunities across manufacturing, supply chain, and logistics sectors. For the initial production phase in the third and fourth quarters of 2027, Chery has set a target of 15,000 units, with expectations for further growth as the plant matures. To support these operations, the company has launched a localisation programme, engaging with Tier-1 suppliers with the goal of reaching a 40% local-content target by 2028.

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Strategic Vision for South Africa

The Rosslyn site is central to Chery’s long-term vision of establishing South Africa as its operational, manufacturing, and research and development headquarters for the African continent. Chery Automobile Co., Ltd. Chairman Yin Tongyue emphasized the company’s commitment to the local economy, stating that the move represents a shift from being a market participant to becoming a long-term partner in South Africa’s industrial development. Chery’s broader strategy for the facility includes: * Industrial Hub Development: Evolving the site into a comprehensive ecosystem that encompasses R&D, skills development, and supply chain operations. * Export Potential: Utilizing the plant as a base for exports into the wider African market. * Diversified Portfolio: Supporting a wide industrial footprint that includes passenger vehicles, smart agricultural machinery, robotics, and green energy initiatives. The company has also integrated social responsibility into its local footprint, partnering with UNICEF South Africa for education programmes and collaborating with the International Union for Conservation of Nature (IUCN) on biodiversity conservation projects within the country.

Market Context and Future Outlook

Since entering the South African market in 2021, Chery has experienced rapid growth, currently ranking as the second-largest passenger vehicle brand by sales in the country. The company maintains an ambitious long-term goal of exceeding 100,000 annual vehicle sales within the South African market. By producing hybrid models locally, Chery aims to address the rising demand for fuel-efficient, electrified vehicles while continuing to serve the market for conventional petrol-powered cars. This move aligns with the company’s “In Somewhere, For Somewhere, Be Somewhere” philosophy, reflecting its intention to deepen economic and trade ties between China and Africa through high-quality industrial cooperation.

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