JOHANNESBURG – Chinese carmaker Chery is considering setting up a vehicle assembly plant in South Africa, with the company now in the second phase of a feasibility study to assess the viability of local production.
Chery South Africa’s strategic planning and government relations director, Neel Hariram, said the automaker’s rapid growth in the local market has reached a level that justifies exploring manufacturing options within the country.
The study is examining a range of models including semi-knocked-down (SKD) and completely knocked-down (CKD) kits, joint ventures, contract manufacturing, and even a full greenfield investment. Hariram noted that supplier capability and regulatory compliance are currently under review.
While no timeline has been given for the conclusion of the study, Hariram confirmed that discussions have already begun with the South African government and will intensify as the project progresses. He added that local production could cut costs, lessen dependency on imports, and strengthen Chery’s position in the Southern African automotive market.
This development comes on the heels of Chery’s earlier announcement of a research and development (R&D) centre in South Africa, which may pave the way for full-scale manufacturing.
Chery first entered the South African market in the 2000s but exited shortly after due to poor reception. It relaunched in November 2021 with the Tiggo 4 Pro and followed up with models like the Tiggo 7 Pro and Tiggo 8 Pro, finding far more success.
Between 2022 and 2023, Chery more than doubled its vehicle sales in South Africa—from 8,013 to 16,110 units. That momentum carried into 2024 with an 18.29% rise in quarterly sales by Q3. The Tiggo 4 Pro model alone saw a spike of over 30%.
The company closed 2024 with 19,971 units sold—up nearly 24% from the previous year and over 1,400% higher than its 2014 numbers.
Looking ahead, Chery plans to introduce a new vehicle brand, Lepas, in South Africa. The new line was unveiled during the 2025 Chery Global Business Conference and is expected to launch locally in 2026. A national brand and marketing manager has already been appointed to lead the rollout.
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