Stellantis Suspends Its Factory Project in South Africa and Confirms the Competitiveness of Its Facilities in Morocco
Stellantis Delays South Africa Plant Project
The construction project for a Stellantis factory in South Africa has been temporarily put on hold. The automaker is currently reassessing the details of this proposed facility in the Eastern Cape Province, as its production sites in Morocco and Turkey continue to rank among the best performers in the Middle East and Africa (MEA) region.
This situation reinforces Morocco’s strategic position, establishing it as one of Stellantis’s main industrial hubs on the continent.
Continued Reevaluation of the South African Project
Initially announced in 2023, the future factory was set to be located in Gqeberha (formerly Port Elizabeth) and was to be Stellantis’s first production site in South Africa. The project originally planned to manufacture the Peugeot Landtrek pickup; however, it was later revised to include several other models. Nevertheless, due to shifts in the automotive market, the group decided to temporarily suspend its implementation.
Mike Whitfield, CEO of Stellantis South Africa, pointed out that the project has not been abandoned but is undergoing a strategic review intended to align the investment with the new market realities.
Increasing Asian Competition
This reevaluation comes at a time marked by the growing strength of Asian manufacturers, particularly from China, whose vehicles offer very competitive prices in the South African market. Local demand is now focused on vehicles priced below 400,000 rand (approximately $24,400), forcing international manufacturers to revisit their industrial and commercial strategies.
According to Whitfield, the share of pickups produced in Africa has also declined in recent years, dropping from around 94% to 70%, thereby altering the prospects for local production.
Stellantis Increases Vehicle Imports from Asia
While awaiting a final decision on its South African project, Stellantis plans to ramp up vehicle imports from Asia, particularly from China. The group believes it must rely on more competitive supply chains to meet the new market demands and maintain its competitiveness against Chinese manufacturers.
Morocco Confirms Its Role as a Regional Industrial Hub
As the South African project remains under study, Morocco is solidifying its position within Stellantis’s industrial organization. Samir Cherfan, the group’s Director of Operations for the Middle East and Africa, noted that Moroccan factories, alongside those in Turkey, are among the most competitive within the group in this region.
With its robust infrastructure, quality automotive ecosystem, and industrial competitiveness, the Kingdom continues to play a central role in the automaker’s regional strategy. As Stellantis redefines its industrial framework in Africa, Morocco emerges as a cornerstone of its regional production, poised to support the group’s growth in both African and international markets.
