News Global Nissan Motor to Sell South African Manufacturing Assets to China's Chery Automobile by Mid-2026Nissan Motor to Sell South African Manufacturing Assets to China's Chery Automobile by Mid-2026
Nissan Motor will sell its Rosslyn, South Africa manufacturing assets to China's Chery Automobile by mid-2026 for an undisclosed amount, subject to regulatory approvals. The deal includes land, buildings, and manufacturing assets, with Navara pickup production ending in May. This forms part of Nissan's turnaround strategy involving seven plant closures globally, while most employees will be offered positions by Chery SA under similar terms.
*this image is generated using AI for illustrative purposes only.
Nissan Motor has announced its intention to sell manufacturing assets in Rosslyn, South Africa, to the local arm of China's Chery Automobile by mid-2026, marking a significant shift in the Japanese automaker's African operations. The transaction, for an undisclosed amount, is subject to regulatory approvals and other conditions.
Asset Transfer Details
The deal encompasses comprehensive manufacturing infrastructure as outlined below:
| Asset Category: | Details |
|---|---|
| Location: | Rosslyn, South Africa |
| Assets Included: | Land, buildings, and associated manufacturing assets |
| Completion Timeline: | Mid-2026 |
| Buyer: | Chery SA (local arm of Chery Automobile) |
| Transaction Value: | Undisclosed |
Production of the Navara pickup truck, currently the plant's only model, will cease in May if the deal proceeds as planned. The Navara serves both the local South African market and export markets, primarily across Africa.
Strategic Context and Challenges
This divestment forms part of Nissan's ongoing turnaround strategy, which involves closing or consolidating seven plants globally. The Rosslyn facility, established more than 50 years ago, has faced utilisation challenges in recent years.
"External factors have had a well-known impact on the utilisation of the Rosslyn plant and its future viability within Nissan," stated Jordi Vila, Nissan Africa President.
Nissan's challenges in South Africa intensified following the cessation of its high-volume NP200 half-ton pickup truck production in 2023. The company competes in a challenging pickup truck segment dominated by established players including Toyota's Hilux, Ford's Ranger, and Isuzu's D-Max, all ranking among the country's top 10 best-selling vehicles.
Employee Transition and Future Operations
The transition includes provisions for workforce continuity:
| Aspect: | Details |
|---|---|
| Employee Transfer: | Most impacted employees offered positions by Chery SA |
| Terms: | Similar conditions to current employment |
| Nissan Presence: | Continued sales and service operations |
| Future Launches: | Tekton and Patrol models scheduled for 2026 financial year |
Despite the manufacturing asset sale, Nissan will maintain its commercial presence in South Africa through continued vehicle sales and service operations, with several new model launches planned for the 2026 financial year.
Chery's South African Expansion
Chery SA represents the South African operations of China's third-largest automaker by volume. In October, Chery South Africa's leadership had indicated the company was exploring various expansion options in the country, including utilising existing manufacturer facilities, creating joint ventures, or establishing new greenfield sites. The acquisition of Nissan's established manufacturing infrastructure provides a ready-made solution for Chery's South African manufacturing ambitions.
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