Stellantis Pauses $160M South Africa Coega Plant as Competition Intensifies

Stellantis South Africa has delayed construction of its planned $160 million vehicle assembly plant in the Coega Special Economic Zone, citing shifting market conditions and rising competition. The project, originally scheduled to begin production of the Peugeot Landtrek by early 2026, is now on hold while the company reassesses its business case and overall plant strategy.

Competition in South Africa’s pickup segment has intensified. Established players such as Toyota, Ford, and Isuzu continue to dominate, while new entrants particularly Chinese manufacturers are reshaping the market.

The Landtrek has struggled to gain traction against segment leaders like the Ford Ranger, Toyota Hilux, and Isuzu D-Max. More competitively priced vehicles from Chinese brands have added further pressure, forcing Stellantis to rethink its positioning.

Company Response and Original Investment Plan

Mike Whitfield, Managing Director of Stellantis South Africa, confirmed the project has not been cancelled but paused while the company re-evaluates its direction. Speaking to Engineering News, he said the shift reflects how quickly the pickup segment has changed. “The pickup industry has changed dramatically in recent years, with many new entrants,” he said. “The plant will not be sustainable just on a pickup.”

Stellantis first announced the project in 2023, signing an agreement with the Industrial Development Corporation (IDC) for a $160 million (R3-billion) investment. The facility, planned for the Coega Special Economic Zone near Gqeberha, was intended to assemble the Peugeot Landtrek for both local and export markets across Africa and the Middle East.

Shift Toward NEVs and Diversification

As part of its revised strategy, Stellantis is exploring the inclusion of new-energy vehicles (NEVs), including hybrid and fully electric models, in line with global electrification trends. The company is also awaiting clearer policy direction on NEVs in South Africa before making long-term commitments.

Alongside this, Stellantis is assessing a broader product mix beyond the Landtrek to strengthen the plant’s long-term viability. Whitfield said diversification will be critical. “We are assessing additional products to ensure long-term stability and sustainability,” he said.