Johannesburg – Chinese automaker Great Wall Motors is moving closer to establishing a manufacturing footprint in South Africa, with talks underway to either share an existing plant or acquire one, company executives have confirmed.
The development was revealed by GWM South Africa Managing Director Kevin Li during the launch of the Haval H6 plug in hybrid SUV. He said the company is currently engaging Mercedes Benz over the possibility of sharing its East London production facility, while separate discussions have also been held with Nissan.
Li stated that should negotiations to share a plant not succeed, the company is prepared to purchase an existing facility. “Another option is buying a plant, because new plants take time and we also have discussions with related stakeholders on local production,” he said. “The policy is not favourable for new entrants, especially for us.” 
The move comes amid growing calls within South Africa’s automotive sector for Chinese brands, which have rapidly gained market share, to localise production in order to support job creation and strengthen the economy. GWM’s expansion plans are seen as a response to these industry concerns.
The company’s engagement with Mercedes Benz follows a setback earlier this year when GWM lost out to rival Chery in a bid for Nissan’s Rosslyn plant. Despite this, GWM executives say their strategy remains unchanged.
Li noted that discussions are still ongoing regarding which models could be assembled locally. “So there will be more discussion on the local production, but how we agree with Mercedes Benz or other solutions is still in discussion,” he said.
GWM’s current lineup includes a mix of SUVs, bakkies and electric vehicles, such as the Haval H6, Jolion, Tank 300 and Tank 500 off road SUVs, the P Series pickup range and the Ora 03 electric hatchback.
Chief Operating Officer Conrad Groenewald pointed to broader industry challenges tied to the Automotive Production and Development Programme, a government policy aimed at boosting manufacturing, investment and exports. He said the programme has not fully delivered on its intended outcomes.
“I think in addition to that, Naamsa is busy with all the OEMs at the moment. APDP2, or APDP is not worked out the way it’s intended to. So the intention of APDP was that 50 percent of the produced volume is exported,” said Groenewald.
He added that many manufacturers are operating below capacity. “A lot of the plants are being underutilised in South Africa at the moment,” he said.
According to Groenewald, industry players are now engaging government through Naamsa to review the programme and ease entry barriers for new manufacturers. “We are talking to, as a consolidated OEM and automotive group, via Naamsa to the government about revising APDP and lowering the barriers of entry to make it more viable for more OEMs to produce, for more automotive brands to produce in South Africa.”
Despite losing the Rosslyn opportunity, Groenewald said GWM remains committed to entering the local manufacturing space. “Losing the Nissan plant to Chery will not make us stop.”
