Chery’ s purchase of Nissan’ s South African production assets is telling. But it was a historic inevitability.
In the early 1970s, driving a Toyota bakkie raised a lot of unkind social commentary. But anyone who underestimated the potential of those first, light-duty Toyota Hilux bakkies of the 1970s was proven resoundingly wrong.
Toyota dominates the South African automotive industry, and its Hilux has been the most successful single model for decades. And there’ s a lesson in this: never underestimate Asian product planners and automotive engineers.
African market with poor-quality bakkies. Few survived, and China’ s standing among South African buyers suffered. But the Chinese desire for rapid improvement and conquering global markets doesn’ t tolerate sustained mediocrity.
The difference between Chinese cars and market credibility in the late 2000s and now is staggering. Imported Chinese cars now account for 15 % of the South African newcar market. Toyota still leads, with Suzuki’ s value budget cars helping it remain in second place. But third? In the first month of this year, it was no longer VW, but Chery.
By far the most ambitious of all Chinese car companies active in South Africa, Chery’ s product
Like all Chinese companies, Chery has a long-term vision for its South African business. Industrial planning in China is guided by a vision decades into the future, but with an urgency to execute in the present. It’ s a devastatingly effective combination. Evidence being Chery’ s expansion from a peripheral South African car brand to the 3rd most popular house of brands in the first month of this year.
Nissan’ s Rosslyn assembly and stamping plant will become Chery’ s midway through the year. Signalling that Chery has real ambitions to leverage the established local automotive supply chain in Rosslyn and beyond, and benefit from subsidies and domestic-built vehicle tariff protection under the 2035 South African Automotive Masterplan. And for South African car buyers? Locallybuilt, value-packed, Chery vehicles without a 25 % import tariff.
Renowned global business schools have spoken of the Shenzhen speed phenomenon: an ability Chinese companies have to build faster and better than anyone else, while increasing technical competency and quality. Legacy systems debt does not burden Chinese R & D teams and industrial engineers. It’ s a hypercompetitive market, with a ruthless focus and belief that technology conquers all.
During the late 2000s, many Chinese car companies entered the South portfolio includes several subbrands( Omoda, Jeacoo, Jetour) and will soon be expanded with Lepas and iCar.
When Chery first started trading in South Africa during the late 2000s, it tried to sell the QQ3, a terrible copy of Daewoo’ s Matiz. Nobody foresaw that in 2025, Chery would be an avalanche of SUVs and crossovers. Models with classleading infotainment tech and powertrains that rival and exceed the performance of some legacy European brands.
Imported Chinese cars now account for 15 % of the South African newcar market.
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