The Japanese automaker is attempting to replace its costly local manufacturing operations with an import-based model. Chinese automakers, already seeking to capture as much of the South African automotive market as possible, are hoping to capitalize on the shift.

 

Nissan’s new model will not be produced in South Africa

On Monday, September 21st, Nissan began selling the Tekton, produced in India, in South Africa. The car’s price starts at 339,999 rand, or about $20,900. It is the first in a series of new models intended to strengthen the brand’s position in the country after the end of local production. This year, Nissan also plans to introduce a new version of the Navara and the eighth generation of the Patrol.

The company has changed its sales strategy. After nearly six decades of production, Nissan sold its factory in Rosslyn, near Pretoria, to the Chinese automaker Chery and switched to an import-based model in South Africa. According to company representatives,  the decision was driven by the need to better utilize production capacity at other factories and to increase competitiveness.

To put it simply, the company has changed its business model while trying to reduce overhead costs. A factory requires a certain scale of production, investment, and a stable supply chain. Nissan can now produce select models where it is more efficient to do so and then export them to South Africa.

The Tekton is built in India as part of the Renault-Nissan Alliance and is expected to be exported to around 50 markets across the Middle East and Africa. The first batch of over 1,300 cars was shipped from India at the beginning of September.

 

Two automotive giants with two different business strategies

Interestingly, the factory that Nissan used until recently has been sold to one of the company’s biggest competitors—the Chinese automaker Chery, which took over the factory in July 2026.

According to the South African government, the Chinese group plans to manufacture Chery, Jaecoo, and Jetour vehicles in Rosslyn. Initial production is scheduled to begin in mid-2027, and the factory is ultimately expected to produce 15,000 cars per year. The project is expected to create 692 jobs and generate nearly 3,000 direct and indirect employment opportunities.

 

The Chinese automakers are entering the african auto market

Does this mean that the African automotive market is facing a major transformation? Not necessarily. Japanese and Chinese manufacturers are pursuing different business models, and it will take several years to see how each strategy performs.

South Africa provides a clear example of how Chinese automakers are moving beyond simply exporting vehicles. Increasingly, they are building local sales, service, and now also manufacturing networks. Chery itself describes its takeover of the Nissan factory as a transition from importer to local manufacturer. Africa may be just the beginning of this approach. Chinese automakers are selling more and more cars in Europe, where a similar shift in the business model may soon become a reality.

 

Nissan remains in the african automotive market

However, Nissan remains active in South Africa. The company’s official structure shows that Centurion remains the centre of Nissan’s regional operations for Africa. Nissan Tekton is therefore more than just the debut of a new SUV. The company is using it as a test case to determine whether reducing its assets in South Africa, making greater use of its global network of factories, and focusing on products tailored to local demand will ultimately prove profitable.