A Global Collapse, a Local Casualty
Nissan’s worldwide troubles hit South Africa hard. In fiscal year 2025 the company lost about ¥533 billion and decided to shut down seven factories around the globe. Its “Re:Nissan” plan cut the total number of plants from 17 to 10 and shed roughly 20,000 jobs. The Rosslyn plant, which had been building cars for more than 60 years, was one of the sites that could not survive this cut‑back. Sales there had fallen for years, and the factory was running far below capacity – a situation Nissan could not justify to its shareholders.
Who Stepped In and Why
The news that caught everyone’s attention was that a Chinese carmaker, Chery, moved in to take over the Rosslyn facility. Chery isn’t a charity; it’s China’s third‑largest automaker by volume. The company saw an opportunity because South Africa’s car market is shifting quickly toward Chinese brands.
- Chinese brands held 16.8 % of the South African passenger‑car market in 2025, up from 11.2 % the year before.
- By the end of 2025 there were 15 Chinese brands selling locally, compared with only eight in 2024.
- Chery’s own marques – Omoda, Jaecoo and Jetour – were already moving close to 5 000 units a month.
Meanwhile, Nissan’s sales in South Africa dropped 32 % year‑on‑year in 2025, pushing the brand out of the top ten sellers for the first time in decades.
Why Chery Bought Rosslyn
The purchase looks less like a rescue and more like a smart business move:
- Chery gets a ready‑made factory with an existing workforce and supplier network.
- Most of the Nissan employees will stay on under similar conditions.
- The plant will focus on making SUVs – Chery’s strongest‑selling category in South Africa.
- Buying an existing plant is far cheaper and faster than building a new one from scratch.
The Structural Advantage Nobody Is Talking About
Chinese brand Haval (owned by GWM) has been successful in South Africa by using low prices and long warranties, even though it builds its cars overseas. Chery now has something Haval does not: a local factory.
Having a plant means Chery can qualify for incentives under South Africa’s Automotive Production and Development Programme (APDP). Those incentives reward companies that use a high percentage of locally made parts and hit certain production volumes. If Chery pursues these benefits, its cost structure could become lower than that of older Japanese or European brands that rely mostly on imports.
What Nissan Is Doing Now
Nissan is switching to an import‑only model for South Africa. It will keep its dealer network and plans to launch new models like the Tekton and the Patrol in fiscal 2026. However, importing finished vehicles while a rival is producing locally – and while Nissan’s own sales keep falling – is a risky strategy. History shows that brands that give up local production in emerging markets often struggle to stay relevant as pure importers.
A Market That Has Already Moved On
The Rosslyn deal signals a deeper shift in South Africa’s car industry. The National Association of Automobile Manufacturers of South Africa (NAAMSA) says the rise of Chinese brands is not a short‑term fad; it is reshaping how buyers choose cars. Consumers are moving away from loyalty to a badge and toward value for money.
With a factory, Chery is no longer just another foreign brand selling cars; it becomes a local producer that can offer better prices, quicker delivery, and potential government incentives. Nissan’s six‑decade legacy at Rosslyn is now in Chery’s hands, and the future of the plant will be decided by the new owner.
Conclusion
What started as a global cost‑cutting move by Nissan turned into a local opportunity for Chery. The Rosslyn plant’s closure was almost inevitable given Nissan’s worldwide losses, but the facility’s existing infrastructure, skilled workers, and place in South Africa’s regulatory framework made it an attractive target for a Chinese automaker eager to expand. By producing SUVs locally and tapping into APDP incentives, Chery gains a structural edge that rivals relying on imports cannot easily match. For South African buyers, the change may mean more affordable choices and a market where value outweighs brand prestige. The story of Rosslyn reminds us that in fast‑moving industries, today’s giant can become tomorrow’s opportunity for a newcomer.
