Chinese automakers pivot to African factories as domestic sales plunge

Chinese automakers are accelerating their push into Africa, shifting from vehicle exports to local manufacturing as domestic sales continue a prolonged slump and trade barriers mount in Western markets. The trend reached a milestone in July when Chery, China's largest auto exporter, completed its acquisition of Nissan's former Rosslyn plant near Pretoria, South Africa, where it plans to produce plug-in hybrids, battery-electric vehicles, and models under its Jetour brand.abcnews

A Market in Freefall Pushes Manufacturers Abroad

The pivot to Africa is driven in part by a deepening contraction at home. Passenger car sales in China fell 21.1% year-on-year in July to 1.47 million vehicles, according to data from the China Passenger Car Association, while exports surged 88.2% to 923,000 units. The domestic market has now declined for consecutive months stretching back to late 2025, with first-half 2026 sales down roughly 20%. The International Energy Agency noted that Chinese electric car exports more than doubled in early 2026 compared with the same period in 2025, even as domestic new-energy vehicle sales dropped almost 25%.reuters+2

Chery's South Africa Bet

The Rosslyn deal, first announced in January and completed mid-year as planned, saw Chery SA acquire the land, buildings, and associated assets of the facility, including a nearby stamping plant. Around 700 of the plant's 800 former Nissan workers were offered positions with Chery under similar employment terms. Reuters reported in January that Nissan's Navara pickup production at the site ceased in May ahead of the handover.reuters+2

Chery is not alone. Beijing Automotive Group operates a manufacturing facility in Gqeberha, and Great Wall Motor has initiated localized assembly and component distribution in the region. Countries including South Africa, Morocco, Kenya, Ethiopia, and Ghana are seen as prime destinations for Chinese EV investment, bolstered by supportive industrial policies and growing electricity infrastructure.news.ssbcrack

Policy Tailwinds Across the Continent

African governments are actively courting the investment. Ethiopia has banned fossil fuel vehicle imports, while South Africa offers customs duty rebates and tax breaks for EV manufacturing. Morocco's proximity to European markets and plans for Africa's first large-scale battery gigafactory add further strategic appeal. The African Union's Green Minerals Strategy aims to increase domestic processing of critical minerals such as lithium, of which Zimbabwe holds vast reserves.news.ssbcrack

As Hiten Parmar, executive director of The Electric Mission, told reporters, the competitive pricing of Chinese brands is "broadening access to new vehicles" for African consumers who have historically relied on used cars.news.ssbcrack