Chinese importer Chery South Africa (SA) is in the midst of a feasibility study to determine if it will establish an assembly plant in the country.

“Given Chery’s rapid growth in the South African market, we have reached a critical sales volume that justifies exploring local production,” says Chery SA strategic planning and government relations director Neel Hariram.

“We are conducting a feasibility study and evaluating various options, including semi-knocked down, completely knocked down, contract manufacturing, joint ventures or a greenfield investment.

“All potential models are under review as part of this study. Chery is committed to expanding its footprint and investment in South Africa, supported by our extensive network of over 85 dealerships.”

Hariram tells Engineering News Online that Chery SA is in Phase 2 of the feasibility study, which is focused on assessing local supplier capability and regulatory compliance.

“While we cannot provide an exact timeline at this stage, we anticipate progress in the near future as we advance through the feasibility phases.

“Local production would enhance cost efficiency, reduce import dependencies and strengthen our market positioning,” notes Hariram.

He adds that Chery SA has already initiated discussions with government on its plans, and aims to deepen this engagement as the feasibility study progresses.

He also notes that “the short- to mid-term focus” is on strengthening Chery’s presence in the South African market, given what it believes to be country’s significant growth potential.

“Export opportunities will only be considered in the long term. Our strategy is to establish a strong foundation in South Africa through strategic partnerships, then leverage this platform to expand into other African markets.

“We remain committed to sustainable growth in South Africa and the broader African market.”

Chery currently sells around 2 000 new vehicles a month in the local market, with the broader group – including brands such as Omoda and Jaecoo – boosting that number to around 3 000 unit sales monthly.

“This success is driven by our competitive and diversified product lineup,” notes Hariram.

Chery Pickup on the Way
The Tiggo 4 series is Chery SA’s top-selling model and the second-best-selling sports-utility vehicle in South Africa, with the locally produced Toyota Corolla Cross at number one.

The company is in the process of expanding its local new-energy-vehicle lineup this year, including hybrid and plug-in hybrid (PHEV) models.

“Later this year, we will introduce the Tiggo 9 series in both internal combustion engine and PHEV variants. Additionally, we plan to enter the pickup segment with both commercial and passenger-oriented models next year,” says Hariram.