Chinese car giant looking at building a factory in South Africa

Chinese car giant Chery is exploring the possibility of establishing an assembly plant in South Africa, as the brand continues its rapid expansion in the local market. 

Chery South Africa confirmed that it is currently in the second phase of a feasibility study to determine the viability of local manufacturing.

“Given Chery’s rapid growth in the South African market, we have reached a critical sales volume that justifies exploring local production,” said Neel Hariram, Chery SA’s strategic planning and government relations director. 

He explained that the feasibility study is evaluating several production models, including semi-knocked-down (SKD) and completely knocked-down (CKD) kits, contract manufacturing, joint ventures, or a greenfield investment. 

“All potential models are under review as part of this study,” he noted. Hariram said that  Chery SA is currently focusing on assessing the capability of local suppliers and ensuring compliance with regulatory requirements. 

“While we cannot provide an exact timeline at this stage, we anticipate progress in the near future as we advance through the feasibility phases,” he said. 

However, he highlighted that local production would enhance cost efficiency, reduce import dependencies and strengthen our market positioning. 

Hariram also said Chery has already begun discussions with the South African government regarding its plans and aims to deepen its engagement as the study progresses. 

The move could be closely linked to Chery’s earlier announcement of a new research and development (R&D) centre planned for South Africa. 

When the company announced the plan earlier this year, it hinted that it could lead to a full-scale manufacturing facility.

Although Chery first entered the South African market in the 2000s, the brand struggled to gain traction due to consumer scepticism towards Chinese vehicles and soon withdrew.

However, sentiment has shifted considerably in recent years. Chery made a strong return in November 2021 with the launch of its Tiggo 4 Pro crossover, followed by the Tiggo 8 Pro and Tiggo 7 Pro in early 2022.

Massive growth in South Africa

By April 2023, 18 months after its re-entry, Chery had sold 5,389 SUVs in South Africa. The brand’s momentum continued to build with the release of additional models like the Tiggo 4 Pro LiT and the Tiggo 7 and 8 Pro Max variants.

These new offerings helped Chery double its vehicle sales in 2023 compared to 2022, growing from 8,013 units to 16,110, a 101% year-on-year increase, the highest the company had achieved at the time.

That trend continued into 2024 with the launch of the Tiggo Cross in October, a range-topping alternative to the Tiggo 4 and a complement to the Tiggo 7. 

By the third financial quarter of 2024, Chery reported an 18.29% increase in quarterly sales, rising from 4,113 to 4,941 units. The Tiggo 4 Pro alone recorded a remarkable 30.67% spike in interest during that period.

The company ended 2024 with 19,971 units sold in South Africa, an increase of nearly 24% over the previous year and a staggering 1,440% growth from the 1,297 units it sold in 2014.

As Chery continues to expand, it is also preparing to launch a new brand in South Africa called Lepas.

The new car was first unveiled at the 2025 Chery Global Business Conference in China and is expected to debut locally in 2026. 

While an exact launch date has not been set, Chery has already appointed a national brand and marketing manager to oversee Lepas’ rollout in South Africa.

“Chery remains committed to sustainable growth in South Africa and the broader African market,” said Hariram.