Chinese automaker Great Wall Motor eyes sharing Mercedes-Benz plant in South Africa expansion push

Chinese automaker Great Wall Motor (GWM) is considering whether to share a manufacturing facility with another carmaker in South Africa or acquire an existing plant, as it looks to expand its local footprint, regional executives said on Wednesday.

The company has held discussions with Mercedes-Benz and Nissan while weighing its options.

Chinese automobile brands are rapidly becoming a prominent force in the African automotive market, driven by competitive pricing, modern technology, and vehicles specifically designed for local conditions.

In South Africa, their rise has been particularly striking. Chinese brands recorded a roughly 19% increase in sales in 2024, capturing 11.8% of the new vehicle market—up sharply from just 2.8% in 2020.

Even more telling is the pace of entry. Nearly half of the 14 Chinese automotive brands now operating in the country launched only within the past year.

As these automakers accelerate their global expansion, many are turning to overseas production to cushion against potential trade barriers targeting imports of Chinese-made vehicles.

“We have had discussions with Mercedes-Benz since last year and also engaged Nissan,” said Kevin Li, Managing Director of GWM South Africa, during the launch of the Haval H6 plug-in hybrid SUV. “Contract assembly is one option, while buying a plant is another, because building a new facility takes time.”

Li added that GWM continues to engage multiple stakeholders on local production and plans to meet South African government officials in China during the upcoming annual auto show.

GWM was recently outbid by Chinese rival Chery Automobile, which secured a deal to acquire Nissan’s South African plant for local assembly, according to Reuters report.

Chief Operating Officer Conrad Groenewald said the company is still evaluating which model to produce locally. He pointed to a new global product, codenamed EC15, as a strong candidate due to its potential for localisation and exports to Europe.

Mercedes-Benz South Africa said its East London plant remains focused on C-Class production and declined to comment on future plans, though it acknowledged that production strategies may evolve with changing market demands.

Last year, CEO Andreas Brand noted the facility had previously produced vehicles for multiple brands, suggesting such arrangements could happen again.

GWM, which holds about 5% of South Africa’s vehicle market and ranks sixth in sales, is also expanding its lineup with a new plug-in hybrid version of the Haval H6, targeting growing demand for hybrid vehicles and compact SUVs popular among families.