China's Chery picks Omoda C4 as its first vehicle to be built in South Africa

By Nqobile Dludla

JOHANNESBURG, Oct 21 (Reuters) - Chinese automaker Chery Group 9973.HK will begin vehicle production in South Africa with its Omoda C4 crossover SUV, deepening its presence in Africa.

The Omoda C4 will be produced at the Rosslyn plant near Pretoria, which Chery acquired from Nissan this year. It will be offered in petrol, hybrid and fully electric variants when it launches for sale in South Africa next year, the company said on Wednesday.

Chery said production would be accompanied by a localisation programme aimed at developing South African suppliers and increasing the proportion of locally sourced components. That chimes with South African initiatives to increase domestic manufacturing and component sourcing.

Chinese automakers including BYD 002594.SZ, Chery and Great Wall Motor (GWM) 601633.SS are accelerating their push into overseas markets, including Africa, as slowing growth at home and intense competition in China's crowded auto sector force manufacturers to seek new buyers abroad.

Beijing Automotive Group (BAIC) has an assembly and manufacturing plant in South Africa while GWM is considering whether to share a manufacturing facility with another carmaker or acquire an existing plant if available.

South Africa, now the continent's second-biggest automotive manufacturing hub, has become a key target for Chinese brands looking to build market share.

Chery has said it wants to establish South Africa as its African hub for manufacturing, exports, research and development.

The Omoda C4, aimed at younger buyers, will join a growing line-up of models set for local production at the plant, including the Jetour T series of SUVs.

During the ramp-up phase in the third and fourth quarters of 2027, the company expects to produce 15,000 vehicles, rising eventually to 50,000 a year.