Stellantis intends to expand its product line-up at a planned manufacturing plant in South Africa, moving beyond pick-up trucks as shifting market dynamics prompt a strategy rethink, the company’s local manager says.
The carmaker announced plans in 2023 to build a greenfield factory in Gqeberha, its first plant in SA, with the original intention of producing only the Peugeot Landtrek pick-up truck.
“The market has changed dramatically [since then]. We believe just having a pure pick-up plant is not as viable,” Stellantis South Africa MD Mike Whitfield told Reuters on Thursday on the sidelines of a car conference. “We are looking at adding additional products to the plant.”
As road infrastructure improves in sub-Saharan Africa and new brands enter the market, consumer preferences are evolving, he said.
“Now if we look at the new entrants coming from Asia, both parts of Asia — Thailand, India, China — there’s a significant change in the competitive landscape of pick-ups. People have access to more affordable vehicles.”
Growth in the market is not coming from pick-ups, he said. “It’s coming from smaller vehicles.”
By the end of this year Stellantis will be in a position to determine the final product mix. The start of production will be in the second half of 2027, Whitfield said.
The plant, which will be a completely knocked down factory — whereby parts are imported or purchased from local suppliers — is part of Stellantis’ broader push to grow its footprint in Africa, where it sees long-term potential for manufacturing and sales. It will produce cars for the local and African markets.
“We’re committed to industrialising in South Africa,” Whitfield said.
The world’s fourth-largest carmaker is also planning to launch its joint-venture Chinese Leapmotor C10 range-extended electric SUV in South Africa this year, with more models coming next year.
Reuters
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