Deputy President Paul Mashatile has urged Chinese vehicle manufacturer Chery International to place local suppliers and youth-owned enterprises at the centre of its plans as the company prepares to establish its first vehicle assembly plant in South Africa.
Speaking at the Chery International Factory Acquisition Celebration in Rosslyn, Tshwane, Mashatile described the investment as a strong sign of confidence in South Africa’s economy, its people and its manufacturing capabilities.
He said government expects the project to support job creation, deepen local supply chains and contribute to a more inclusive model of industrial growth.
Mashatile called on Chery to work closely with government to identify and support South African suppliers, with particular emphasis on businesses led by young people. He said a competitive automotive industry depends on a strong and resilient supplier base, while young entrepreneurs have an important role to play in shaping the country’s economic future.
The Deputy President also encouraged the inclusion of township-based businesses in the automotive value chain, saying this would help ensure that communities near manufacturing hubs benefit directly from industrial development.
He said local firms should be given access to capacity building, mentorship and markets, allowing youth-owned enterprises to participate in areas such as logistics, components, services and technology.
According to Mashatile, Chery’s acquisition of the Rosslyn facility follows government engagements with the company during a working visit to China in November 2023, where South Africa was promoted as a destination for investment and automotive manufacturing expansion.
He said the investment sends a clear message to global investors that South Africa remains a reliable industrial investment destination, despite uncertainty in the global economy. He added that it strengthens the country’s position as a key automotive gateway to the African continent.
Mashatile also pointed to the importance of the automotive sector in supporting employment, exports and technical skills development. He welcomed Chery’s focus on new energy vehicles, noting that South Africa must adapt to global changes in the automotive industry to protect future export opportunities.
The Deputy President said the shift towards new energy vehicles is accelerating internationally and that South Africa risks losing important markets by 2035 if it does not transition in time.
He reaffirmed government’s commitment to creating conditions that attract investment while also protecting and strengthening local manufacturing capacity.
Mashatile said the Rosslyn factory should become a source of opportunity for surrounding communities, including Mabopane, Soshanguve, Ga-Rankuwa and Hammanskraal. He added that greater investment in skills development, apprenticeships and technical education would be essential to prepare young South Africans for advanced manufacturing and technology-driven industries.
He concluded by saying South Africa remains open to investment and innovation, and is committed to building an economy that delivers opportunities for all.
Staff Writer
Reporting from the front lines of the automotive industry, delivering expert analysis and the technical updates that drive the South African motor sector forward.
