Stellantis is still reviewing plans for a proposed manufacturing plant in the Eastern Cape and expects to make a decision in the coming months, the company’s local manager said on Tuesday.

The car maker announced plans in 2023 to build a greenfield factory in the coastal city of Gqeberha, its first plant in South Africa, with the original intention of producing only the Peugeot Landtrek bakkie.

The plant was originally due to be completed last year, but the plans are being reworked to support multiple models as export economics and consumer preferences change.

“We certainly have not stopped that process. We put it on pause,” South Africa MD Mike Whitfield told reporters at a press conference outlining the Middle East and Africa section of the group’s €60-billion global strategy unveiled in May.

“We’ve seen the market changing significantly with the advent of Asian players, the buy down to below R400 000,” Whitfield said. “I think three-and-a-half years ago … 94% of all pickups sold here in Africa were effectively made here. Now it’s down to 70-something.”

Whitfield said the company expects to clarify the next steps for the plant within months. The review comes as the South African market is reshaped by a rapid influx of lower-cost vehicles from China such as Chery and other Asian producers, forcing global carmakers to rethink production strategies and pricing.

‘Superb job’

Asked whether Stellantis, which has existing partnerships in Europe with Chinese car makers Leapmotor and Dongfeng, would be open to sharing its planned South Africa plant with other Chinese firms, Whitfield said attention was “very much focused on ourselves”.

However, the company will increase import sourcing for the country from Asia, including China, he said. “The Chinese have done a superb job. You can’t take that away from them, and to be competitive, we need to source with the same degree of competitiveness.”

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In the Middle East and Africa region, plants in Morocco and Turkey are among the most competitive in Stellantis. It sees untapped potential further south in the region, where it will complement local production and current regional offering with SUVs and bakkies sourced at “best benchmark costs” from Asia, said Samir Cherfan, chief operating officer for the Middle East and Africa region. — (c) 2026 Reuters