Chery Eyes South African Factory as SUV Sales Soar

After 1,440% growth in a decade, Chery considers local production and a new brand for Mzansi.

Chinese carmaker Chery is no longer just dipping its toes in the South African market, it’s diving in headfirst.

The company, which has seen massive growth since its re-entry in 2021, is now in the second phase of a feasibility study to explore whether it makes sense to build a vehicle assembly plant in South Africa.

“We’ve hit a point where local production is not just viable, it’s necessary,” said Neel Hariram, Chery SA’s director of strategic planning and government relations. “We’ve seen exponential growth, and local manufacturing could strengthen our position significantly.”

What’s On the Table

Chery’s study is considering everything from semi-knocked-down kits (SKD) and completely knocked-down kits (CKD) to contract manufacturing, joint ventures, or even a greenfield factory build.

Each option comes with its own set of regulatory and supplier challenges, and Chery is currently assessing the capabilities of South African component manufacturers and regulatory compliance.

The company has already opened discussions with the government, laying the groundwork for what could become one of the most significant auto industry investments from a Chinese brand on the continent.

Why It Makes Sense Now

South Africans have warmed up to Chery, dramatically. After a shaky early 2000s debut marred by consumer scepticism toward Chinese vehicles, Chery made a triumphant return in late 2021 with the Tiggo 4 Pro.

In just three years, the brand has become a fixture on local roads, riding a wave of demand for affordable, tech-rich SUVs.

Here’s a snapshot of Chery’s stunning growth:

• 2014: Just 1,297 vehicles sold

• 2023: Over 16,000 units sold

• 2024: Topped 19,971 units, nearly a 24% YoY increase

• Since 2014: A jaw-dropping 1,440% increase in sales

Models like the Tiggo 4 Pro, 7 Pro, and 8 Pro Max have become household names, and the Tiggo Cross, launched in October 2024, has fueled even more momentum.

By Q3 2024 alone, Chery recorded a 30.67% jump in Tiggo 4 Pro interest and an 18.29% rise in total quarterly sales.

A New Brand for South Africa: Lepas

Chery’s local ambitions don’t stop at just manufacturing. The company also plans to introduce a new brand, Lepas, to South Africa in 2026.

Unveiled at the 2025 Chery Global Business Conference in China, Lepas is expected to target new segments, likely EVs or lifestyle vehicles and aims to deepen Chery’s roots on the continent. The company has already appointed a national brand and marketing manager to guide its South African debut.

The Bigger Picture: Jobs, Growth, and Africa Strategy

Chery’s potential factory won’t just benefit the company, it could be a win for South Africa’s auto sector, which has long aimed to attract more foreign investment and localise production.

If it goes ahead, the project would support:

• Local job creation

• Supply chain development

• Reduced vehicle import costs

• A stepping stone for broader African expansion

While Hariram won’t commit to a timeline just yet, he confirms the company is moving steadily through its feasibility stages.

“Local production would enhance cost efficiency, reduce import dependencies and strengthen our market positioning,” he noted.

And if the momentum continues, don’t be surprised to see “Assembled in SA” badges on Chery vehicles rolling off factory floors in Gauteng or the Eastern Cape in a few years’ time.

Public Reaction So Far:
South Africans on social media have largely welcomed the idea. One Twitter user wrote, “If Chery builds a plant here, that’s jobs and more affordable cars, win-win.” Another posted, “Chery’s SUVs punch above their price point. A factory would be game-changing.”

With sales soaring and a new brand on the way, Chery’s bet on South Africa is paying off—and it looks like they’re ready to double down.