Chinese car manufacturer Chery is assessing the feasibility of setting up an assembly facility in South Africa.

The company, whose sales in South Africa shot up by 24% last year over 2023, is investigating several production models, including semi-knocked-down or completely knocked-down kits, contract manufacturing, joint ventures or a greenfield investment, reports BusinessTech

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

According to Engineering News, the company has reached the second phase of the feasibility study, which encompasses local supplier capability and regulatory compliance.

Hariram says local production will enhance cost efficiency, reduce dependence on imports and strengthen Chery’s market positioning.

‘Export opportunities will only be considered in the long term. Our strategy is to establish a strong foundation in South Africa through strategic partnerships, then leverage this platform to expand into other African markets,’ he says.

The Chery group, including the Omoda and Jaecoo marques, sells about 3 000 new vehicles a month in the local market.

15 July 2025
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