Chery is taking further steps towards establishing a local automotive supply chain in South Africa, bringing a delegation of 23 Chinese component suppliers to the country to explore partnerships with local industry and government stakeholders.
The delegation formed part of the “Engineering the Future of Supply” conference held at the Automotive Industry Development Centre (AIDC) in Rosslyn, where Chery Tech met with public-sector leaders, industry associations and South African component manufacturers. The focus was on identifying local suppliers, developing manufacturing capabilities and exploring investment opportunities that could support Chery's long-term localisation plans following its acquisition of a manufacturing facility in Rosslyn.
The introduction of the Chinese suppliers was aimed at matching Chery's existing global supply network with South African companies capable of supporting local production. The discussions focused on identifying potential partners, strengthening local capabilities and finding areas where further investment could be made. As part of the discussions, Chery Tech's Assistant General Manager Junfeng Shen outlined Phase 1 of Chery's global “3+1” market expansion strategy for South Africa.
“Our goal is to build an integrated supply chain ecosystem that supports sustainable localisation and drives technological growth,” said Tony Liu, CEO of Chery South Africa.
At the conference, Chery Tech shared a a range of technologies and capabilities, including advanced cockpit and ADAS systems, high- and low-voltage wiring harnesses, chassis and aluminium components, thermal management systems, braking technologies, smart seating, fuel cell pumps and electrolyser technologies.
The key topic being discussed was the need for an increase in the local rate of vehicle production opposed to the high numbers of imports. But it was particularly highlighted that a large percentage of this shift would have to focus on the production of New Energy Vehicles, which are currently taking the entire world by storm. South Africa's mineral resources could also play a role in developing a local battery value chain, creating opportunities that extend beyond vehicle assembly into battery research, development and potentially local production.
Representatives from the AIDC, Tshwane Automotive Special Economic Zone (TASEZ), Gauteng Growth and Development Agency (GGDA), Department of Trade, Industry and Competition (the dtic), and Industrial Development Corporation (IDC) highlighted the allocation of funds and support to infrastructure and investment support available to suppliers establishing local operations.
A panel discussion featuring the National Association of Automotive Component and Allied Manufacturers (NAACAM), the National Association of Automotive Manufacturers of South Africa (NAAMSA) and the National Union of Metalworkers of South Africa (NUMSA) explored strategies for building resilient supply networks centred on transformation, inclusive growth and long-term industrial development.
For Chery, the Rosslyn facility appears to be becoming about more than simply putting vehicles together locally. The introduction of its Chinese supplier network suggests that the company is now working towards building the wider ecosystem required to make local production sustainable, from component manufacturing and skills development to potential opportunities in the emerging NEV and battery value chains.
By connecting Chery's global supplier network with South African industry and investment opportunities, the “Engineering the Future of Supply” conference forms part of the company's broader commitment to supporting local investment, job creation, skills transfer and the development of a stronger automotive manufacturing ecosystem in South Africa.