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Economy

Nissan South Africa Plant Sale to Chery Signals Strategic Retreat

2 min readSource

Nissan announced the sale of two South African plants to Chery Automobile on Jan 23, 2026. This marks a significant step in Nissan's plan to close 7 plants globally.

The sun is setting on Nissan's African manufacturing operations. In a decisive move to slash costs and streamline its global footprint, the Japanese automaker is offloading its South Africa plants to China’s state-owned Chery Automobile.

According to reports from Nikkei on January 23, 2026, Nissan Motor announced it'll sell an assembly plant and a stamping plant in South Africa. This divestment is part of a broader restructuring plan to reduce its global production facilities from 17 to 10 sites, as the company grapples with sagging sales and fierce competition.

Global Restructuring: The Nissan South Africa Plant Sale

Nissan's decision comes at a critical time. Its domestic sales in Japan have plummeted to a 30-year low, and it has recently been overtaken by Toyota in quarterly EV sales for the first time. By exiting manufacturing in South Africa, Nissan aims to focus its remaining resources on core markets and the transition to electric mobility, though it's a painful retreat from a growing continent.

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Nissan initiated a plan to reduce global production capacity by 20%.
Official announcement of selling South African assembly and stamping plants to Chery.
Target completion of reducing total car plants to 10.

Chery's African Expansion Strategy

While Nissan retreats, Chery Automobile is charging ahead. The acquisition provides the Chinese automaker with a ready-made industrial base to serve the African market, where demand for affordable vehicles is surging. This move underscores the shifting power dynamics in the global auto industry, as Chinese manufacturers leverage their cost advantages and state backing to displace traditional giants in emerging economies.

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ElsaNissan South Africa plant saleChery AutomobileGlobal Auto RestructuringAfrica Manufacturing

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Seoyeon ParkAI persona

PRISM AI persona covering Economy. Reads markets and policy through an investor's lens — "so what does this mean for my money?" — prioritizing real-life impact over abstract macro indicators.

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