Chinese automaker Chery buys Nissan plant in Africa as EV production
shifts to new markets
[August 12, 2026] ALLAN
OLINGO
NAIROBI, Kenya (AP) — Chinese automakers are increasingly shifting from
exporting vehicles to building them in Africa, betting that rapid
urbanization, a growing middle class and supportive government policies
will make the continent one of the industry’s last major growth markets.
It’s part of a strategy for coping with slowing demand at home and
rising trade barriers in Europe and North America. Analysts say the
shift could reshape Africa’s automotive industry by creating jobs,
developing local supply chains and accelerating adoption of electric
vehicles, although weak infrastructure and policy uncertainty remain
significant obstacles.
In July, Chery, China’s largest auto exporter, acquired Nissan’s former
Rosslyn plant near Pretoria, South Africa, where it plans to make
plug-in hybrids, battery-electric vehicles and models under its Jetour
brand.
The move reflects a broader strategy by Chinese automakers to
manufacture closer to African consumers rather than rely solely on
imports, though the trend is just getting started.
Beijing Automotive Group (BAIC) has an automotive manufacturing and
assembly facility in Gqeberha (Port Elizabeth), South Africa, and
China's Great Wall Motor has some localized assembly and component
distribution capacity.
“Africa has become known as the next frontier for the automotive
market,” said Hiten Parmar, executive director of The Electric Mission,
a South African nonprofit promoting sustainable mobility.
Transition to EVs is accelerating in Africa
Analysts say South Africa, Morocco, Kenya, Ethiopia and Ghana are among
the countries best positioned to attract Chinese EV investment because
of their industrial capacity, supportive policies or growing electricity
infrastructure. Morocco also benefits from proximity to European export
markets, while Zimbabwe’s large lithium reserves could support battery
supply chains.
Local manufacturing could eventually lower vehicle prices by avoiding
import duties while stimulating investment in charging infrastructure,
component manufacturing and battery production. Africa’s first
large-scale battery gigafactory is already planned in Morocco.
Rapid urbanization, rising incomes and the relative affordability of
Chinese brands are enabling Chinese automakers to capture markets
historically dominated by European, Japanese and American giants.
“Whilst African consumers have been thriving on used cars, the
affordability of Asian brands is providing a wider accessibility reach
for new vehicles,” Parmar said.
Nick Hedley, an energy transition research analyst at Zero Carbon
Analytics, said Africa’s fast-growing population and expanding middle
class create a natural market for affordable electric vehicles while
helping governments reduce dependence on imported fuel.
“Africa is also a net importer of refined fuels, which drains foreign
reserves and weighs on local currencies and budgets,” Hedley said.
“Switching to local electric cars for transportation is in African
countries’ national interest.”
“As electric vehicles become more cost-competitive, their uptake will
accelerate across Africa, and Chinese automakers will benefit,” Hedley
said.
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Workers assemble the Zeekr 001 EV models at the Chinese automaker
Zeekr assembly plant in Ningbo, east China's Zhejiang Province,
April 17, 2025. (AP Photo/Andy Wong, File)
 The shift is also being driven by
changing economics inside China.
Tombo Banda, managing director of CrossBoundary Energy, said Chinese
factories are producing more vehicle s than the domestic market can
absorb while exports face mounting barriers.
“Onshoring production on the continent is a sound long-term
investment,” Banda said, noting that local manufacturing helps
companies navigate tariffs while positioning themselves closer to
fast-growing markets.
Governments are aligning transport policies for energy security
A Green Minerals Strategy adopted by the African Union aims to
increase domestic processing of critical minerals. That would make
more usable raw materials available locally.
Ethiopia has banned imports of fossil fuel-powered vehicles and is
encouraging local production by mandating lower import duties on EVs
assembled domestically.
South Africa has taken a different approach, using production
incentives like customs duty rebates, production-linked credits,
direct cash investments, and tax breaks to encourage investment in
electric- and hydrogen fueled-vehicle manufacturing.
“This is becoming a notable change in approach from Asian brands,
from pure imports, to considerations of assembly and manufacturing,”
Parmar said.
Africa is increasingly positioned to become more than just a
destination for imported vehicles.
“If Chinese manufacturers want access to these markets, they need to
add value locally rather than simply sell into them,” Banda said.
“That is what will move Africa from a sales market to a genuine
manufacturing base.”
South Africa has a head start
South Africa already has manufacturing capacity, skilled workers and
established export markets, Banda said. Purchasing facilities such
as the Rosslyn plant can enable automakers to retool existing
factories rather than build new ones from scratch.
“Companies can pivot, or enter partnerships, far faster than anyone
starting from scratch,” he said.
But he cautioned that converting factories designed for internal
combustion engines is complex and requires long-term certainty on
taxes, tariffs and industrial policy.
Stable policies are essential, since sudden changes in taxes or
regulations can undermine investor confidence. Reliable
infrastructure is also vital.
“Without clean, reliable, affordable electricity, forget about
operating EVs. Without sufficient, well-located charging, forget
about functional EVs,” Banda said.
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