Stellantis Halts Gqeberha Plant Construction in South Africa to Reassess Market Conditions

Stellantis Group has suspended its plans to build a vehicle assembly plant in Gqeberha, Eastern Cape Province, South Africa, and is conducting a reassessment of the project. The facility was originally scheduled to begin production of the Peugeot Landtrek pickup truck in 2025 and would have been Stellantis’s first manufacturing base in South Africa. The decision to pause the project follows intensifying competition in South Africa’s automotive market, particularly from Chinese and Indian automakers whose feature-rich, low-priced vehicles have rapidly captured market share, leading to declining sales of traditionally branded vehicles produced locally. Mike Whitfield, Managing Director of Stellantis South Africa, stated that this move constitutes only a temporary suspension, not a cancellation, of the project. The group will re-evaluate the project’s direction over the coming months based on market conditions and export opportunities. Analysts suggest that Stellantis may subsequently import SUVs from its Asian partners to bundle with locally produced pickups, thereby maintaining its influence in Middle Eastern and African markets.