Stellantis, one of the world’s largest automotive groups, has signed a Memorandum of Understanding with the Industrial Development Corporation (IDC) and the Department of Trade, Industry and Competition (the dtic) to develop a manufacturing facility in South Africa. The signing ceremony, which took place at the office of Mr. Ebrahim Patel, Minister of Trade, Industry and Competition, marks an important milestone for the region’s Dare Forward 2030 strategic plan, which aims to sell one million vehicles by 2030 with 70% regional production autonomy.
According to the agreement, the manufacturing plant will be established in a South African Special Economic Zone (SEZ) with a target completion date of 2025. The move is expected to strengthen Stellantis’ position in the South African market and expand its manufacturing footprint in the region.
The decision to establish a manufacturing plant in South Africa is part of Stellantis’ broader strategy to increase its presence in the Middle East and Africa. Mr. Samir Cherfan, Stellantis Middle East and Africa Chief Operating Officer, said, “The manufacturing site in South Africa will be a new building block in our industrialization strategy that includes the plan to sell one million vehicles in the region by 2030 with 70% regional production autonomy and will bring us closer to our customers’ needs in the region.”
The South African government welcomed the investment, with Mr. Ebrahim Patel, Minister of Trade, Industry and Competition, stating, “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 local jobs.”
Mr. TP Nchocho, CEO of the IDC, also expressed enthusiasm for the joint venture, calling Stellantis “an amazing opportunity for South Africa.” He added, “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.”
The agreement is a significant step forward for the region’s automotive industry, which has faced significant challenges in recent years. The establishment of a new manufacturing plant is expected to create jobs and stimulate economic growth in the region, while also increasing Stellantis’ presence in the South African market.