In a significant development for the African automotive sector, Japanese automaker Nissan Motor has announced plans to sell its manufacturing assets located in Rosslyn, South Africa, to the local subsidiary of China's Chery Automobile. The transaction amount remains undisclosed, according to a Reuters report that has drawn attention from industry observers worldwide.
Details of the Strategic Asset Transfer
The agreement, confirmed by Nissan through an official statement, involves Chery SA acquiring the land, buildings, and all associated assets of Nissan's Rosslyn facilities. This transfer is scheduled to be completed by mid-2026, contingent upon meeting specific conditions including necessary regulatory approvals from relevant authorities.
Should the deal proceed as planned, production of the Navara pickup truck—the sole model manufactured at the Rosslyn plant—will cease operations in May. A Nissan spokesperson clarified to Reuters that this model serves both the local South African market and export destinations, primarily across various African nations.
Nissan's Global Restructuring Strategy
This divestment forms part of Nissan's broader turnaround strategy, which involves closing or consolidating seven manufacturing plants globally. The company has not disclosed the production capacity of the Rosslyn facility, which has been operational for more than five decades since its establishment.
"External factors have significantly impacted the utilization of the Rosslyn plant and its future viability within Nissan's global operations," explained Jordi Vila, President of Nissan Africa, in the company's official statement. This move comes after Nissan faced considerable challenges in the South African market following the production halt of its high-volume NP200 half-ton pickup truck in 2023.
Competitive Landscape and Market Position
The Navara pickup truck competes directly in South Africa's competitive pickup segment against established rivals including:
- Toyota's Hilux
- Ford's Ranger
- Isuzu's D-Max
All these models consistently rank among the country's top ten best-selling vehicles, highlighting the competitive pressure Nissan has faced in this market segment.
Chery's Strategic Expansion into Africa
Chery SA, the South African branch of China's third-largest automaker by production volume, has not yet commented publicly on the acquisition agreement. However, this move aligns with Chery's apparent expansion strategy in the African continent.
In October, Chery South Africa's CEO indicated that the company was exploring multiple options for establishing manufacturing presence in South Africa, including:
- Utilizing another manufacturer's existing facility
- Forming a joint venture partnership
- Establishing its own greenfield manufacturing site
Employee Transition and Future Operations
Regarding workforce implications, Nissan has stated that most impacted employees will be offered positions by Chery SA under similar terms and conditions to their current employment arrangements. This transition plan aims to provide stability for the workforce during this operational change.
Nissan emphasized that it will continue its sales and service operations in South Africa, with several vehicle launches planned for the 2026 financial year. These include anticipated models such as the Tekton and Patrol, indicating the company's continued commitment to the South African market despite the manufacturing asset divestment.
This transaction represents a notable shift in the African automotive manufacturing landscape, marking Chinese automaker Chery's strategic entry into South African production while reflecting Nissan's ongoing global restructuring efforts to optimize its manufacturing footprint and operational efficiency.
