Stellantis’s major investment in a new vehicle manufacturing plant in Coega is entering a fresh phase as the company reviews its business case and adjusts its production timeline. What was once an ambitious plan to bring new models to market by 2026 has shifted, but Stellantis remains confident in the long term value of the project.
The manufacturer says global market pressures have played a central role in revisiting the timeline and scope of the Eastern Cape facility. “As we are all aware, the current global automotive market conditions have placed tremendous pressure on the industry. This has necessitated a review of the current project business case, with the objective of securing additional products to produce in the local plant from the start of production, in order to maximise the 50 000 annual volume threshold,” says Des Fenner from Stellantis.
Stellantis confirms that alongside the already announced Landtrek bakkie, two additional models are under evaluation, which must be finalised before construction begins. “We believe it is prudent to complete the business case for the additional models before beginning construction. We understand that these additional products will require a change in scope for the manufacturing plant, as well as additional investments. This revised business case will result in changes to the overall project scope, cost and timing, moving the start of production to a later date,” he says.
Despite the adjustments, important progress has been made. “The revised business case is currently being completed and will immediately be followed by the review and approval process by Stellantis, IDC, CDC and dtic. As a result, the revised start of production date is expected to be in 2027,” Fenner tells Dealerfloor. Groundwork on the site has already been completed and signed off.
The shift marks a change from the initial plans first laid out when Stellantis confirmed its R3 billion investment. The project was initially aligned with South Africa’s preparations for the African Continental Free Trade Area and was set to be a major contributor to jobs and industrial development. With production once expected to begin in 2026, the plant was envisioned to deliver up to 50 000 completely knocked down units a year.
The project remains a key part of Stellantis’s Dare Forward 2030 strategy, and the company continues to work with government partners to ensure the plant’s long term viability.
