By Nqobile Dludla GQEBERHA South Africa (Reuters) -Stellantis intends to expand its product line-up at a planned manufacturing plant in South Africa, moving beyond pick-up trucks as shifting market
Stellantis Expands Vehicle Offerings at New South Africa Plant
Stellantis' Manufacturing Strategy in South Africa
By Nqobile Dludla
GQEBERHA South Africa (Reuters) -Stellantis intends to expand its product line-up at a planned manufacturing plant in South Africa, moving beyond pick-up trucks as shifting market dynamics prompt a strategy rethink, the company's local manager said.
The automaker announced plans in 2023 to build a greenfield factory in the coastal city of Gqeberha, formerly known as Port Elizabeth, its first plant in South Africa, with the original intention of producing only the Peugeot Landtrek pickup truck.
Changing Market Dynamics
"The market has changed so dramatically (since then). We believe that just having a pure pickup plant is not as viable," Stellantis South Africa managing director Mike Whitfield told Reuters on Thursday on the sidelines of an auto conference. "We are looking at adding additional products to the plant."
As road infrastructure improves across sub-Saharan Africa and new brands enter the market, consumer preferences are evolving, he said.
"Now, if we look at the new entrants coming from Asia, both parts of Asia - Thailand, India, China - there's a significant change in the competitive landscape of pickups," Whitfield said. "People have access to more affordable vehicles."
Future Product Mix
He said growth in the market is not actually coming from pickups: "It's coming from smaller vehicles."
By the end of this year Stellantis will be in a position to determine the final product mix. The start of production will be in the second half of 2027, Whitfield said.
The plant, which will be a completely knocked down (CKD) factory - whereby parts are imported or purchased from local suppliers - is part of Stellantis' broader push to grow its footprint in Africa, where it sees long term potential for manufacturing and sales. It will produce cars for the local and African markets.
Commitment to Industrialization
"We're very much committed to industrialising in South Africa," Whitfield said.
The world's fourth-largest automaker is also planning to launch its joint-venture Chinese Leapmotor C10 range-extended electric SUV in South Africa this year, with more models coming next year.
(Reporting by Nqobile Dludla; Editing by Susan Fenton)
