Uncertainty looms over Nissan South Africa as global restructuring continues

Nissan’s long-standing presence in South Africa may be at risk as the Japanese automaker undergoes a sweeping global restructuring plan, raising fears over the future of its Rosslyn plant near Pretoria.

Last month, Nissan announced plans to cut 20,000 jobs and close seven factories worldwide amid growing financial pressure and intensifying competition in the electric vehicle (EV) market. However, the company has yet to confirm whether its South African operations will be directly affected.

“They are still obviously waiting for confirmation from their global principals. And they will obviously inform us once they are ready to be able to tell us what's happening,” said Mike Mabasa, CEO of the Association of Auto Manufacturers of South Africa. “But obviously, I think it is absolutely clear that Nissan, globally, will be rationalizing its operations. And whether South Africa is going to be impacted directly or not, I think that jury is still out.”

Nissan has been a fixture in the South African auto industry for over six decades, evolving from an assembly plant in 1963 to full-scale production a decade later. But as global trends shift rapidly toward green energy and electric mobility, industry experts say Nissan’s lagging performance in the EV sector may be to blame for its current struggles.

“Not all the legacy automakers are joining the EV revolution, if I can call it that. And if they don't keep up with the changes, then they will lose out,” said Carel Snyman, an independent automotive analyst. “They are all losing sales at the moment, and the Chinese vehicle manufacturers that are really into this now are gaining ground. I mean, BYD is the biggest automotive manufacturer in the world now. And you would have never said that a few years back.”

South Africa’s auto sector, a cornerstone of the country’s manufacturing industry, faces a challenging period. Yet, some experts believe that the evolving landscape may open new opportunities for investment in cleaner, more sustainable technologies — provided stakeholders are ready to adapt.