Chinese automaker, Chery has officially taken over Nissan's manufacturing plant in Rosslyn, South Africa, marking a major milestone in its African expansion strategy as Chinese carmakers intensify their global push amid slowing growth and fierce competition at home.

The handover, completed on Friday, follows a deal announced in January and positions South Africa as the centrepiece of Chery's long-term ambitions on the continent.

The company said it plans to transform the Rosslyn facility into its African hub for manufacturing, exports, research and development (R&D), and regional operations, Reuters reported.

"Our long-term goal is to turn the Rosslyn plant into a complete auto center with research and development, supply chain operations, and training, supporting Chery's expanding presence and the goal of exceeding 100,000 annual vehicle sales in South Africa," Chery South Africa Vice President Charlie Zhang said.

The acquisition comes at a pivotal moment for Africa's automotive industry. South Africa remains the continent's largest vehicle manufacturing hub, accounting for the bulk of Africa's automotive exports and serving as a production base for global brands including BMW, Mercedes-Benz, Ford, Toyota, Isuzu and Volkswagen.

By acquiring an existing manufacturing facility rather than building a new one from scratch, Chery gains immediate access to a mature supplier network, skilled workforce and established export infrastructure.

The Chinese automaker has committed to retaining all 692 employees currently working at the Rosslyn plant. Beyond preserving existing jobs, the company expects the project to create nearly 3,000 direct and indirect jobs across manufacturing, logistics, component supply and related services.

Before production begins, Chery plans to invest millions of dollars in upgrading the factory's machinery, utilities and production lines, although the company has not disclosed the investment amount. Vehicle manufacturing is scheduled to commence in mid-2027, with an initial production target of 15,000 vehicles during the third and fourth quarters of that year.

The Rosslyn facility will initially produce the Jetour T series, the Jaecoo J5, and the Chery Tiggo 4 sport utility vehicles. The Jaecoo J5 will be manufactured in both internal combustion engine (ICE) and new energy vehicle (NEV) variants, reflecting the company's broader strategy of expanding its electric mobility portfolio.

Chery also plans to localise production over time. The company has launched a programme aimed at achieving 40% local content during the initial phase of manufacturing and has begun evaluating South African Tier 1 suppliers. At the same time, it intends to bring in specialised suppliers from China, particularly for electric vehicle technologies and intelligent driving components.

The investment reflects a broader shift in the global automotive industry. Faced with excess production capacity and intensifying price competition in China, Chinese manufacturers including Chery, BYD, GAC, Great Wall Motor and SAIC have accelerated overseas expansion, targeting fast-growing emerging markets across Africa, Latin America and Southeast Asia.