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

Nairobi, Kenya — Chinese automakers are positioning Africa as a key growth market by building plants on the continent, anticipating rapid urbanization, a burgeoning middle class, and favorable government policies. This strategy aims to counteract declining domestic demand and escalating trade barriers in Europe and North America.

Analysts predict the shift could transform Africa's automotive sector by generating employment, fostering local supply networks, and hastening electric vehicle adoption; however, weak infrastructure and policy ambiguity present substantial challenges. In July, Chinese automaker Chery finalized its acquisition of Nissan's former Rosslyn plant near Pretoria, South Africa, intending to manufacture plug-in hybrids, battery-electric vehicles, and vehicles under its Jetour brand.

This move underscores Chinese automakers' strategy to produce closer to African customers rather than depending on imports, albeit the trend is still in its infancy. Companies such as Beijing Automotive Group (BAIC) and Great Wall Motor have established automotive manufacturing and assembly facilities and localized assembly and component distribution capacities in South Africa.

"Africa has emerged as the next frontier for the automotive market," stated Hiten Parmar, executive director of The Electric Mission, a South African nonprofit advocating for sustainable mobility. Analysts identify South Africa, Morocco, Kenya, Ethiopia, and Ghana as the countries most poised to attract Chinese EV investment due to their industrial potential, supportive policies, or expanding electricity infrastructure.

Morocco's advantageous location near European export markets and Zimbabwe's substantial lithium reserves present additional incentives.