Japanese automaker Nissan will sell its manufacturing plant in South Africa to Chinese state-owned rival Chery, ending a five-decade presence as the company battles to regain its footing in the global market.
The move follows a boom in Chinese car brands in the country in recent years, making up more than a tenth of cars sold in South Africa.
Chery will buy the land, buildings, and associated assets of the Nissan property, subject to regulatory approvals. Nissan said the plant in Pretoria had become less viable to the firm due to “external factors” and that the sale would be completed this year. The Japanese company still plans to sell cars in South Africa “through sales and distribution operations.”
Car production in South Africa rose 1.5% year-on-year by last December to just over 600,000 units, but imports rose more than 30% in the same period as competition from China and India shake-up the market. Chery has thrived in South Africa since it resumed operations in the country in 2021 after a hiatus, selling various models including electric vehicles. It was the eighth best-selling car brand in South Africa last year, where the market is still dominated by Nissan’s Japanese rivals Toyota and Suzuki.
