GWM and Chery to assemble vehicles in South Africa — a sentence that signals far more than a corporate announcement. It’s a seismic move that could transform the nation’s automotive landscape, stimulate industrial growth, and redefine competition in one of Africa’s most dynamic car markets.
South Africa’s auto sector is already the heartbeat of its manufacturing industry, contributing roughly 5% to the nation’s GDP and employing more than 100,000 people directly. Now, the entry of two of China’s most ambitious automakers — Great Wall Motors (GWM) and Chery — into local assembly is poised to shift the gears of this industry even further.
This is not just another expansion headline. It’s a strategic turning point that merges global ambition with local potential — a move that has government officials, investors, and consumers watching closely.
Understanding the Move
When GWM and Chery announced plans to assemble vehicles in South Africa, it wasn’t a spur-of-the-moment decision. The local auto market has been steadily recovering post-pandemic, and consumer demand has roared back stronger than expected. Vehicle sales jumped more than 20% year-on-year recently, hinting at renewed confidence in both consumer purchasing power and industrial capability.
Both companies have spent years building brand presence across Africa, using South Africa as their launchpad. Now they’re ready to plant manufacturing roots — not just to sell cars, but to produce, distribute, and eventually export from South African soil.
Why South Africa?
Let’s break it down.
- Strategic location: South Africa offers access to the entire Southern African Development Community (SADC) — a massive consumer region stretching across 16 countries.
- Established infrastructure: Ports, rail lines, and industrial parks are already equipped to handle automotive manufacturing.
- Government support: Policies like the Automotive Production and Development Programme (APDP) make South Africa an attractive base for manufacturers.
- Skilled labour force: Decades of experience with Toyota, Ford, and BMW have cultivated a strong engineering and technical talent pool.
- Rising demand: Local buyers are hungry for affordable, high-tech, fuel-efficient vehicles — a niche that GWM and Chery excel in.
The combination is irresistible. For Chinese automakers looking to expand globally, South Africa isn’t just another market — it’s a gateway to the continent.
The Economic Ripple Effect
The GWM and Chery to assemble vehicles in South Africa initiative could generate a multi-layered economic impact.
First, jobs. Local assembly means new employment opportunities across the supply chain — from logistics to welding, from engineering to quality assurance. Experts estimate that each assembly plant could create between 2,000 and 5,000 direct jobs, with indirect employment multiplying that figure several times through suppliers and services.
Second, skills transfer. Both companies have advanced manufacturing systems — integrating robotics, smart sensors, and data-driven efficiency. As these systems are adopted locally, South African technicians and engineers will gain world-class experience, boosting the nation’s industrial competence.
Third, supplier development. Local component manufacturers could be pulled into the orbit of global supply chains. From seats and dashboards to wiring harnesses and tyres, small businesses stand to benefit if localisation requirements are implemented.
And finally, exports. If South Africa becomes a hub for right-hand-drive production, these vehicles could find their way to markets in Australia, the UK, and across Africa — injecting new life into the country’s export earnings.
A Strategic Game for China’s Giants
For years, China’s auto manufacturers were seen as imitators rather than innovators. That perception has flipped dramatically. GWM and Chery have grown into sophisticated, design-driven, and technology-savvy giants.
GWM has carved its name with brands like Haval, Tank, and Ora, blending rugged SUVs with cutting-edge electric innovation. Chery, on the other hand, has built a reputation for style and value through sub-brands like Omoda, Jaecoo, and Jetour.
Their decision to assemble vehicles in South Africa is a move straight out of the long-term-vision playbook:
- GWM is likely to focus on pick-ups and SUVs — segments where it already dominates.
- Chery will target the passenger-car and crossover market — modern, sleek, urban vehicles that resonate with young professionals.
Together, they are positioning themselves to challenge legacy players like Toyota, Volkswagen, Ford, and Hyundai on price, features, and local presence.
The Local Manufacturing Context
South Africa’s auto industry has long been dominated by global heavyweights. Toyota’s plant in Prospecton, Ford’s Silverton assembly line, Volkswagen’s Kariega factory, and BMW’s Rosslyn operations have all contributed significantly to exports and job creation.
Yet there’s a clear pattern: the market is heavily skewed toward global incumbents.
The arrival of GWM and Chery changes that equation. Their focus on local assembly could reshape competition — introducing new brands to local buyers and forcing rivals to rethink pricing strategies.
Moreover, their investment comes at a time when South Africa is eager to diversify its manufacturing base and attract foreign investment beyond traditional partners like Japan and Germany.
Policy Incentives That Sweeten the Deal
South Africa’s Automotive Production and Development Programme (APDP 2) offers incentives for automakers who produce locally and meet specific localisation thresholds.
Manufacturers who meet volume and content requirements can earn rebates on import duties, reducing production costs significantly.
The key challenge? To qualify for meaningful incentives, a manufacturer typically needs to produce around 50,000 vehicles per year. For GWM and Chery, that’s ambitious — but not impossible.
These brands have seen exponential growth in South Africa’s sales rankings. In some months, Chery has outperformed global brands like Hyundai and Kia, while GWM’s Haval brand remains a top choice among SUV buyers.
With such momentum, reaching high-volume local assembly could happen faster than skeptics expect.
Challenges Along the Road
No move this big comes without obstacles.
1. Local Content Requirements:
To qualify for incentives, automakers must source a significant percentage of parts locally. Building such supplier networks takes time.
2. Logistics & Energy Constraints:
South Africa’s power shortages (load-shedding) and infrastructure bottlenecks can hinder production stability.
3. Market Volatility:
Currency fluctuations and shifting import tariffs could affect profitability.
4. Regulatory Complexity:
Environmental and safety compliance standards differ from China’s, requiring adaptation in design and production.
5. Competition:
Established players already have deep roots, supply chains, and brand loyalty.
Still, GWM and Chery are known for strategic patience. They’ve built global markets by learning, adapting, and embedding themselves in local ecosystems — not by rushing.
How Consumers Stand to Benefit
Local assembly means one thing that consumers care about most — better prices.
Import duties, logistics costs, and currency exchange markups often inflate vehicle prices in South Africa. By assembling cars locally, GWM and Chery can lower these costs and pass on the savings to buyers.
There’s also the service network advantage. Local production usually comes with expanded after-sales infrastructure — service centers, parts availability, and maintenance training.
Buyers can also expect shorter waiting times, as locally produced stock will be readily available without long shipping delays.
The Bigger Picture: Re-Industrialisation
This move fits perfectly into South Africa’s broader economic strategy of re-industrialisation.
The country aims to reverse decades of de-industrialisation by luring foreign investors who create jobs and transfer technology. GWM and Chery’s plans align neatly with that vision.
If the venture succeeds, it will set a precedent for other emerging automakers — including BYD, Geely, and SAIC — to consider South Africa not just as a sales market, but as a manufacturing hub.
Such a ripple effect could reignite the nation’s manufacturing renaissance, strengthening its position as Africa’s automotive capital.
GWM’s Playbook
GWM has been preparing for this for years. The company already operates regional offices in Johannesburg and a strong dealer network across the country.
It has also been quietly studying local assembly partnerships, possibly exploring joint ventures with existing assemblers rather than starting from scratch. This approach would minimize capital expenditure and accelerate time to market.
Strategically, GWM’s focus on SUVs and pick-ups suits the South African landscape perfectly. These vehicles appeal to both urban drivers and rural professionals — bridging the lifestyle gap between work and adventure.
The company’s Tank brand could attract the luxury off-road crowd, while Haval continues to dominate the mid-range SUV space.
Chery’s Momentum
Chery has been on fire in South Africa. Since relaunching locally in 2021, the brand has surged up the sales rankings — propelled by models like the Tiggo 4 Pro and Omoda C5.
In September alone, Chery sold thousands of units, outperforming established brands that have been in the market for decades.
Now, with plans for a complete knock-down (CKD) assembly plant, Chery wants to turn success into permanence. The company’s CEO in South Africa hinted that a final decision on plant location would be made within six months — suggesting that groundwork and feasibility studies are already complete.
The Supply Chain Question
A key challenge for both automakers will be building a robust local supplier ecosystem.
While major component suppliers already support Toyota, VW, and Ford, it takes time to adapt new supply lines for different models and technical specifications.
To ease this process, both companies could rely initially on semi-knock-down (SKD) kits — assembling imported vehicle parts locally until local sourcing ramps up.
Over time, as local suppliers come on board, the companies could transition to full CKD operations, boosting localisation and job creation.
The Power of Partnership
Local assembly often succeeds through collaboration — with government, local assemblers, or logistics partners.
Rumours suggest that GWM is in talks with several existing manufacturers about shared production capacity. This would be a clever move. Building a new plant from scratch can take years and cost billions. Sharing infrastructure speeds things up.
Chery, on the other hand, seems open to both greenfield and takeover options. Either route would allow it to hit production targets faster.
This flexible, partnership-driven strategy is one of the reasons Chinese automakers are advancing globally at breakneck speed.
The Competitive Earthquake
If both automakers succeed, the ripple effect will be massive.
- Toyota will face price pressure on its Hilux and Corolla models.
- Volkswagen may need to accelerate its EV rollout to stay relevant.
- Ford and Nissan could lose ground in the SUV and bakkie segments.
Competition breeds innovation — and consumers win. Expect to see better pricing, improved quality, and a wider variety of models across segments.
South Africa’s Automotive Future
The local industry’s success has always hinged on balancing foreign investment with local empowerment.
With GWM and Chery to assemble vehicles in South Africa, that balance could tilt toward a new generation of global partnerships. These collaborations will bring new technologies — electric drivetrains, smart connectivity, and sustainable production — into the country’s industrial bloodstream.
In the next five years, local assembly could evolve beyond conventional combustion engines. If global trends are any indication, both automakers will push for hybrid and electric production capability once their initial operations stabilize.
That would align perfectly with South Africa’s green-energy goals and export ambitions to eco-focused markets.
Beyond the Factory Gates
The success of this initiative won’t just be measured in cars produced. It will be felt in communities.
Job creation in nearby towns, new housing developments for workers, local businesses supplying logistics and catering — all of these ripple effects turn an assembly plant into an ecosystem.
Moreover, universities and technical colleges could align their training programs with new automotive technologies, producing a new generation of engineers and technicians.
Government’s Role
The South African government has been vocal about its intent to attract more manufacturing investment.
Expect to see special economic zones (SEZs), tax incentives, and infrastructure upgrades rolled out to support the GWM and Chery projects.
This collaboration also fits neatly into broader trade relations between South Africa and China, deepening economic ties that already include mining, energy, and telecommunications.
The Road to 2026 and Beyond
If timelines hold, both automakers could begin local assembly operations between 2025 and 2026.
By then, the industry will look different — leaner, smarter, and more competitive. Local buyers will have more choice than ever before.
But the most significant outcome may not be immediate profits. It will be positioning — turning South Africa into China’s automotive gateway to Africa and beyond.
The Long-Term Vision
In the grand scheme, GWM and Chery’s local assembly plans are more than business expansions. They represent the next chapter in the global auto industry’s transformation — one that prioritises proximity, efficiency, and resilience.
If executed well, this could be the spark that reignites South Africa’s manufacturing sector, driving thousands of new jobs, bolstering exports, and strengthening its industrial backbone.
And for consumers, it signals a future where innovation is not imported — it’s built right here at home.
Port of Gauteng: A Game-Changer in Inland Logistics
Conclusion
GWM and Chery to assemble vehicles in South Africa marks a new era for the nation’s automotive landscape. It’s a statement of intent, a vote of confidence in local capability, and a roadmap toward deeper industrial self-reliance.
South Africa’s auto sector has always been one of its proudest achievements — now it’s ready to evolve once again. The road ahead may be long, but with GWM and Chery steering toward local production, it’s a journey worth taking.