Nissan South Africa (SA) will see production drop to under 20 000 units this year, down from almost 25 000 units last year, but it is not the end of local assembly at the Rosslyn plant, says MD Maciej Klenkiewicz.

The drop in production follows the Russian invasion of Ukraine, which railroaded Nissan’s efforts to find a successor for the successful NP200 half-ton bakkie, which sold around 10 000 units a year in the South African market.

“It wasn’t our choice to end production of the NP200. Unfortunately, it is one of those occasions where global politics influenced what happened in South Africa,” says Klenkiewicz.

“We had a plan for a successor to the NP200. It was supposed to be built on a platform created in Russia, together with Renault.

“When we exited Russia, we left behind the entire project. It was a big loss – it was more than 40% of our volume, so it was significant.”

The loss of the half-tonner saw Nissan SA wrap up a process last year to shrink its workforce by 28%.

In terms of product, the Datsun range was also discontinued in 2022, which hurt Nissan SA in the budget-car market, and this in a domestic economy that has been failing to gain traction.

Nissan SA’s product portfolio now consists only of the Navara pickup (produced in Rosslyn in single-cab and double-cab versions), as well as the Magnite and X-Trail sports-utility vehicles (SUVs).

Klenkiewicz and his team, however, have plans to expand vehicle assembly at Rosslyn and to grow the Nissan product portfolio in South Africa.

Tweaking the Navara range to better suit customer needs has seen production and sales of this one-ton bakkie increase by 28% from April to end-September, says Klenkiewicz.

In South Africa, sales are up 25%, and this in a declining bakkie market.

This year will also be the first time in a long time that Nissan SA’s Navara export volumes will be higher than its domestic Navara sales.

Nissan SA is hard at work to secure more export destinations in Africa and the Middle East, with Rosslyn the only Navara source plant for Africa.

Klenkiewicz says sales have already expanded into Egypt and Libya, with Algeria next on the list.

Ghana, with its own semi-knockdown plant, is currently the car maker’s biggest export market.

“We are trying to maximise our opportunities; we are trying to keep production as high as possible in Rosslyn.”

Klenkiewicz also aims to introduce new products for assembly in the Rosslyn plant.

“We are working on solutions in terms of light commercial vehicles and pickups. Of course, our priority is to find a successor for the NP200, but we have been forced to start from the beginning, so there will be a delay of up to two to three years.”

Any new product that will be assembled will be in addition to Navara production, says Klenkiewicz.

The goal is for the Nissan SA plant to again reach 50 000 units a year – a figure where it can gain the full benefits of government’s Automotive Production and Development Programme.

For this to happen, the company may have to look at two new products for local assembly, and not just one, but this process is likely to take more than five years.

In terms of the local product line-up, the Japanese marque will bring in a new five-seater and seven-seater SUV to South Africa in 2026 – both bigger than the Magnite – potentially doubling sales in South Africa, says Klenkiewicz.

“We are also working – it has not been confirmed yet – to bring in a product below the Magnite, in the A-segment. This may come in before 2026.”

This first ‘new’ Nissan product that will make its debut, however, is the Magnite cargo version, due out before the end of the year.

This converted SUV, already available in India, targets the delivery and/or last-mile logistics sector.

Chinese Competitors
Nissan is feeling the heat of the influx of Chinese brands into South Africa, acknowledges Klenkiewicz.

“Competition is also good for the market and customers, so we need to adapt.”

However, while Chinese vehicle manufacturers are entering most global markets with electric vehicles, owing to the stringent emissions regulations there, their focus in Africa appears to be on internal combustion engine vehicles, he notes.

“Here in Africa, we don’t have strict emission regulations, so these brands can bring anything here, which is creating even more pressure.

“And the cars look nice, but they are very outdated – but customers don’t realise that.”