One of the world’s largest carmakers, Stellantis, has paused plans to build its first manufacturing plant in South Africa as a wave of lower-cost Chinese vehicles reshapes competition in Africa’s biggest automotive market, highlighting how China’s growing influence is forcing global manufacturers to rethink their investment strategies.
The company said it is still reviewing plans for the proposed greenfield factory in Gqeberha, in South Africa’s Eastern Cape province, and expects to decide on the project’s future within the next few months after reassessing market conditions and export opportunities.
Announced in 2023, the facility was originally expected to begin production last year and manufacture the Peugeot Landtrek pickup, marking Stellantis’ first production base in South Africa.
However, the company is now redesigning the project to accommodate multiple vehicle models as consumer demand and export economics evolve.
“We certainly have not stopped that process. We put it on pause,” Stellantis South Africa Managing Director Mike Whitfield told reporters.
