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FAW to produce cars and trucks in South Africa in 2014

BEIJING – FAW Group recently announced that it plans to start production of its trucks and cars in Africa in 2014 to help realize its oversea sales target of 150,000 vehicles by 2015, according to a report on

FAW’s South Africa production project will be implemented in two stages. In the first stage, FAW will set up a 100,000 square meter KD assembling factory with investment of ¥470 million ($74.73 million). Production will start in 2014 with annual output capacity of 5,000 trucks and creating 500 jobs. In the second stage, the Chinese automaker will build a facility on a land area of 300,000 square meters to produce right-hand drive passenger vehicles with a planned annual output capacity of 30,000 units.

All its vehicles to be produced in South Africa will be assembled with parts and components from China.

In 2010, FAW and China-Africa Development Fund jointly established FAW (Africa) Investment Co., Ltd. to engage in auto and auto parts related investment projects and trades in Africa.

FAW’s factory located in Nelson Mandela, a city of Eastern Cape Province, is the first automotive project between them. The factory broke ground in February this year.

For recent two years, FAW has been accelerating its expansion at overseas market. In 2011, FAW built its first oversea factory in Ethiopia to produce Xiali cars by SKD method. At the beginning of this year, it signed an agreement with Russian automotive dealer group Queen Group to offer 33,000 vehicles to the latter by 2015.

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