Chinese automakers shift gears from exports to African production
Chinese automakers are increasingly shifting from exporting vehicles to building them in Africa, betting that rapid urbanization, a growing middle class and supportive government policies will make the continent one of the industry’s last major growth markets.
It’s part of a strategy for coping with slowing demand at home and rising trade barriers in Europe and North America. Analysts say the shift could reshape Africa’s automotive industry by creating jobs, developing local supply chains and accelerating adoption of electric vehicles, although weak infrastructure and policy uncertainty remain significant obstacles.
In July, Chery, China’s largest auto exporter, acquired Nissan’s former Rosslyn plant near Pretoria, South Africa, where it plans to make plug-in hybrids, battery-electric vehicles and models under its Jetour brand.
The move reflects a broader strategy by Chinese automakers to manufacture closer to African consumers rather than rely solely on imports, though the trend is just getting started.
