Stellantis eyes broader SA production but wants policy certainty

Stellantis could expand its South African manufacturing plans beyond the Peugeot Landtrek bakkie but says government policy and incentives will be critical in determining whether additional models are produced locally.

Speaking on the sidelines of the Paris Motor Show, Charl Timms, commercial director of Stellantis Middle East and Africa, said the group was preparing a proposal for its global executive committee that would include multiple vehicle programmes as it seeks to establish a diversified and commercially sustainable manufacturing operation.

The plans are part of Stellantis’ strategy to rebuild its local business through competitively priced vehicles, new products sourced from Asia and a stronger manufacturing base as intensifying competition from Chinese carmakers places growing pressure on established brands.

Timms said a single-model production plant would not make commercial sense and that the company was evaluating additional products alongside the Landtrek programme.

While the business case for local production was compelling, Timms said, a significant portion of the investment decision would depend on government support and future industrial policy.

He urged the government to move more quickly in implementing proposed changes aimed at supporting local vehicle manufacturing, saying several manufacturers were awaiting greater clarity before making investment commitments.

“We need clear guidance as to what the next phase is and how much you’re going to support local manufacturing,” he said.

The automotive industry has repeatedly warned that South Africa risks losing investment to rival manufacturing hubs, particularly Morocco, which has attracted substantial investment.

Timms said that while South Africa retains strong infrastructure, engineering expertise and a long-established automotive sector, uncertainty around future incentives was weakening its competitiveness.

“Morocco today is the better half for Africa to produce cars,” he said, adding that manufacturers are increasingly weighing up other locations.

Stellantis wants annual production at its South African plant to exceed 50,000 vehicles, supported by exports to markets including Turkey, Algeria, Kenya and Tanzania. The company is considering a broader production mix that could include SUVs and new-energy vehicles alongside the Landtrek.

Timms said local manufacturing would provide greater flexibility to compete on price than relying solely on imported vehicles, which had higher costs.

He suggested that changes to industrial policy and production volumes could eventually make it possible to offer vehicles priced around R350,000 or less.

Stellantis already has products suited to the market but cannot bring them to South Africa in the required volumes under existing commercial and policy conditions, Timms said. Greater local production of affordable vehicles would broaden access to new cars while reducing dependence on imports, he added.