{"id":831089,"date":"2025-07-10T15:30:00","date_gmt":"2025-07-10T13:30:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=831089"},"modified":"2025-07-10T14:44:57","modified_gmt":"2025-07-10T12:44:57","slug":"chinese-car-giant-looking-at-building-a-factory-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/motoring\/831089\/chinese-car-giant-looking-at-building-a-factory-in-south-africa\/","title":{"rendered":"Chinese car giant looking at building a factory in South Africa"},"content":{"rendered":"\n<p>Chinese car giant Chery is exploring the possibility of establishing an assembly plant in South Africa, as the brand continues its rapid expansion in the local market.&nbsp;<\/p>\n\n\n\n<p>Chery South Africa confirmed that it is currently in the second phase of a feasibility study to determine the viability of local manufacturing.<\/p>\n\n\n\n<p>\u201cGiven Chery\u2019s rapid growth in the South African market, we have reached a critical sales volume that justifies exploring local production,\u201d said Neel Hariram, Chery SA\u2019s strategic planning and government relations director.&nbsp;<\/p>\n\n\n\n<p>He <a href=\"https:\/\/www.engineeringnews.co.za\/article\/chery-south-africa-conducts-feasibility-study-on-establishing-a-local-plant-2025-07-09\" target=\"_blank\" rel=\"noreferrer noopener\">explained<\/a> that the feasibility study is evaluating several production models, including semi-knocked-down (SKD) and completely knocked-down (CKD) kits, contract manufacturing, joint ventures, or a greenfield investment.&nbsp;<\/p>\n\n\n\n<p>\u201cAll potential models are under review as part of this study,\u201d he noted. Hariram said that&nbsp; Chery SA is currently focusing on assessing the capability of local suppliers and ensuring compliance with regulatory requirements.&nbsp;<\/p>\n\n\n\n<p>\u201cWhile we cannot provide an exact timeline at this stage, we anticipate progress in the near future as we advance through the feasibility phases,\u201d he said.&nbsp;<\/p>\n\n\n\n<p>However, he highlighted that local production would enhance cost efficiency, reduce import dependencies and strengthen our market positioning.&nbsp;<\/p>\n\n\n\n<p>Hariram also said Chery has already begun discussions with the South African government regarding its plans and aims to deepen its engagement as the study progresses.\u00a0<\/p>\n\n\n\n<p>The move could be closely linked to Chery\u2019s earlier announcement of a new research and development (R&amp;D) centre planned for South Africa.&nbsp;<\/p>\n\n\n\n<p>When the company <a href=\"https:\/\/topauto.co.za\/features\/133377\/south-africa-looking-at-a-new-chinese-car-factory\/\" target=\"_blank\" rel=\"noreferrer noopener\">announced<\/a> the plan earlier this year, it hinted that it could lead to a full-scale manufacturing facility.<\/p>\n\n\n\n<p>Although Chery first entered the South African market in the 2000s, the brand struggled to gain traction due to consumer scepticism towards Chinese vehicles and soon withdrew.<\/p>\n\n\n\n<p>However, <a href=\"https:\/\/topauto.co.za\/features\/122620\/cherys-rise-to-stardom-in-south-africa\/\" target=\"_blank\" rel=\"noreferrer noopener\">sentiment has shifted<\/a> considerably in recent years. Chery made a strong return in November 2021 with the launch of its Tiggo 4 Pro crossover, followed by the Tiggo 8 Pro and Tiggo 7 Pro in early 2022.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Massive growth in South Africa <\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/07\/Chery-1.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/07\/Chery-1-1024x576.jpg\" alt=\"\" class=\"wp-image-831101\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/07\/Chery-1-1024x576.jpg 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/07\/Chery-1-300x169.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/07\/Chery-1-768x432.jpg 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/07\/Chery-1.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p>By April 2023, 18 months after its re-entry, Chery had sold 5,389 SUVs in South Africa. The brand\u2019s momentum continued to build with the release of additional models like the Tiggo 4 Pro LiT and the Tiggo 7 and 8 Pro Max variants.<\/p>\n\n\n\n<p>These new offerings helped Chery double its vehicle sales in 2023 compared to 2022, growing from 8,013 units to 16,110, a 101% year-on-year increase, the highest the company had achieved at the time.<\/p>\n\n\n\n<p>That trend continued into 2024 with the launch of the Tiggo Cross in October, a range-topping alternative to the Tiggo 4 and a complement to the Tiggo 7.&nbsp;<\/p>\n\n\n\n<p>By the third financial quarter of 2024, Chery reported an 18.29% increase in quarterly sales, rising from 4,113 to 4,941 units. The Tiggo 4 Pro alone recorded a remarkable 30.67% spike in interest during that period.<\/p>\n\n\n\n<p>The company ended 2024 with 19,971 units sold in South Africa, an increase of nearly 24% over the previous year and a staggering 1,440% growth from the 1,297 units it sold in 2014.<\/p>\n\n\n\n<p>As Chery continues to expand, it is also preparing to launch a new brand in South Africa called Lepas.<\/p>\n\n\n\n<p>The new car was first unveiled at the 2025 Chery Global Business Conference in China and is expected to debut locally in 2026.&nbsp;<\/p>\n\n\n\n<p>While an exact launch date has not been set, Chery has already appointed a national brand and marketing manager to oversee Lepas&#8217; rollout in South Africa.<\/p>\n\n\n\n<p>\u201cChery remains committed to sustainable growth in South Africa and the broader African market,\u201d said Hariram.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Chinese car giant is exploring the possibility of establishing an assembly plant in South Africa.<\/p>\n","protected":false},"author":92,"featured_media":831097,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11119],"tags":[23093,853],"class_list":["post-831089","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-motoring","tag-chery-south-africa","tag-south-africa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/831089","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/92"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=831089"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/831089\/revisions"}],"predecessor-version":[{"id":831122,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/831089\/revisions\/831122"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/831097"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=831089"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=831089"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=831089"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}