Chinese automaker Chery buys Nissan plant in Africa as EV production shifts to new markets

NAIROBI, Kenya (AP) — Chinese automaker Chery is acquiring a Nissan plant in Africa as vehicle production shifts to new markets on the continent. The move is driven by factors such as rapid urbanization, a growing middle class, and supportive government policies that make Africa a promising growth market for the industry.

Chery, China’s largest auto exporter, recently acquired Nissan’s former Rosslyn plant near Pretoria, South Africa, with plans to manufacture plug-in hybrids, battery-electric vehicles, and models under its Jetour brand. This acquisition reflects a broader strategy by Chinese automakers to build closer to African consumers instead of relying solely on imports.

Analysts say Africa has the potential to become one of the industry’s last major growth markets due to its urbanization, expanding middle class, and supportive government policies. Countries like South Africa, Morocco, Kenya, Ethiopia, and Ghana are among the best positioned to attract Chinese EV investment due to their industrial capacity, favorable policies, or expanding electricity infrastructure.

The shift towards local manufacturing could create jobs, develop local supply chains, and accelerate the adoption of electric vehicles. However, challenges such as weak infrastructure and policy uncertainty remain significant obstacles.