Stellantis has signed a memorandum of understanding with the Industrial Development Corporation (IDC) and the department of trade, industry and competition to manufacture vehicles in South Africa.
The company imports the Alfa Romeo, Citroën, Fiat, Jeep, Opel and Peugeot brands, which sell in relatively low volumes. Stellantis sold 218 vehicles locally in February in a total market of 45,352 units.
It has not confirmed which brand it plans to build nor where the plant will be located, saying only the factory will be planned for set-up in a special economic zone by 2025.
“I am pleased that Stellantis is looking to South Africa to expand its manufacturing footprint,” trade, industry and competition minister Ebrahim Patel said at the signing ceremony in his office.
“The company is a large, global automaker with a range of well-known brands. South Africa is a great investment destination with significant car-making capacity. We look forward to working closely with Stellantis to enable the company to set-up a plant that will expand our manufacturing base and create jobs,” he said.
The signing ceremony was attended by TP Nchocho, CEO of the IDC; Samir Cherfan, Stellantis Middle East and Africa COO; and Leslie Ramsoomar, MD of Stellantis South Africa.
“This is an important step in our Dare Forward 2030 strategic plan to strengthen our leadership in the Middle East and Africa region and becoming a major player in South Africa,” said Cherfan.
“An investment partner such as Stellantis is an amazing opportunity for South Africa,” said the IDC’s Nchocho.
“Their track record in manufacturing plants around the world is impressive and we look forward to a joint venture with Stellantis to build a successful plant in South Africa. Another brick in the foundation towards our target of producing 1-million cars in South Africa.”
In 2022, there were 528,963 new vehicles sold in South Africa, combining imports and locally assembled vehicles, for a 13.9% gain on 2021.
Ford, Toyota, BMW, Mercedes-Benz, Isuzu, Nissan, Volkswagen, Mahindra and BAIC already have car factories in South Africa.
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