Nissan launches Tekton SUV in South Africa after plant closure

By Reuters News

By Nqobile Dludla

JOHANNESBURG, Sept 21 (Reuters) - Nissan 7201.T launched its new Tekton SUV in South Africa on Monday, betting that a wave of new vehicle introductions can help to revive growth and reassure customers and dealers after the Japanese automaker exited local manufacturing this year and shifted to an import-focused business.

The launch marks the first in a series of new models Nissan plans to bring to South Africa as it seeks to strengthen its presence in Africa's biggest automotive market after the sale of its Pretoria plant this year to China's Chery 9973.HK, a move that raised questions about the brand's future in the country.

Nissan has been restructuring globally to cut costs through plant closures, job reductions and a leaner vehicle portfolio.

"Unfortunately, we had to stop the activity of manufacturing in South Africa. We're maximising capacity in other plants, and that makes us more competitive, which hopefully we see in the vehicles we bring," Nissan Africa President Jordi Vila told reporters at the launch.

South Africa's automotive sector is undergoing significant change as established global brands face growing competition from Chinese carmakers while adapting to shifting consumer demand towards SUVs and more affordable options.

"It's designed to compete, it's designed to stay relevant and most of all it is designed to let South Africans fall in love again with the brand that has been part of our lives," Vila said, referring to the Tekton with a starting price of 339,999 rand ($20,939.64).

The Tekton, which is manufactured in India, is being introduced in South Africa as Nissan's first African launch market for the model since its global debut in India and among the first launches worldwide.

Nissan has already introduced a new X-Trail SUV in South Africa this year and plans to launch an upgraded Navara pick-up and the eighth-generation Patrol SUV during the current financial year. Further models are scheduled from next year.

The company said it remained committed to South Africa despite ending local vehicle production.

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