Nissan Motor said on Friday it plans to sell its manufacturing assets in South Africa to the local unit of China’s Chery Automobile, a move that will end the Japanese automaker’s vehicle production in the country as it presses ahead with a global turnaround plan.
Nissan said Chery South Africa would acquire the land, buildings and associated assets of its Rosslyn plant, north of Pretoria, in mid-2026, subject to regulatory approvals and other closing conditions. The financial terms of the transaction were not disclosed.
If the deal is completed, production of the Navara pickup truck the only model currently built at the site – will end in May, a Nissan spokesperson said. The Navara is produced for the domestic market and exported to several countries, mainly across Africa.
The sale marks the end of more than five decades of Nissan vehicle manufacturing in South Africa. The Rosslyn plant was established more than 50 years ago and has been a key part of the country’s automotive industry.
The transaction forms part of Nissan’s broader restructuring under a turnaround plan that includes closing or consolidating seven production facilities worldwide as the company seeks to restore profitability and improve capacity utilisation.
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“External factors have had a well-known impact on the utilisation of the Rosslyn plant and its future viability within Nissan,” said Jordi Vila, president of Nissan Africa, in a statement.
Nissan has struggled to maintain volumes in South Africa in recent years, particularly after production of its high-volume NP200 half-ton pickup truck ended in 2023. Since then, the company has faced intense competition in the popular pickup segment from rivals including Toyota’s Hilux, Ford’s Ranger and Isuzu’s D-Max, all of which rank among the country’s top-selling vehicles.
The automaker declined to confirm the production capacity of the Rosslyn facility, but analysts have said low utilisation has weighed on its competitiveness amid rising costs and shifting market demand.
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Despite exiting manufacturing, Nissan said it would continue to sell and service vehicles in South Africa, which remains one of its key markets on the continent. The company said several new models are planned for launch in the 2026 financial year, including the Tekton and Patrol.
Nissan also said most employees affected by the sale would be offered positions by Chery South Africa on similar terms and conditions to their current contracts, easing concerns over potential job losses linked to the closure of production.
Chery South Africa, the local arm of China’s third-largest automaker by vehicle sales, declined to comment on the agreement.
Chery has been expanding rapidly in the South African market through vehicle imports and brand growth, but does not currently operate a manufacturing plant in the country. In October, the chief executive of Chery South Africa said the company was considering several options to establish local production capacity, including using an existing manufacturer’s facility, forming a joint venture or building a new greenfield plant.
The acquisition of Nissan’s Rosslyn assets would give Chery an established industrial base in Africa’s most developed automotive market, potentially allowing it to localise production and reduce reliance on imports over time.
For Nissan, the move underscores the scale of its restructuring as it seeks to streamline operations amid weak global demand, rising competition and pressure on margins. The company has been working to cut costs, simplify its product lineup and refocus on core markets.
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South Africa’s automotive sector, one of the largest manufacturing industries in the country, has faced growing uncertainty as global automakers reassess production footprints and transition toward electrification and new mobility strategies.
While Nissan’s exit from local manufacturing marks a significant shift, industry analysts say continued investment by new entrants such as Chinese automakers could partially offset the impact, depending on how quickly new production plans are implemented.
The South African government has yet to comment publicly on the proposed transaction or its implications for the country’s automotive industrial policy.
