BMW is investing R4.2 billion in its Rosslyn plant in South Africa over the next five years to produce its first new energy vehicle (NEV) in the country. The announcement was made by Dr Milan Nedeljković, the board chair of BMW Group South Africa, who revealed that the next-generation BMW X3 plug-in hybrid will begin production at the Rosslyn plant in 2024. However, this NEV version will be exclusively manufactured for the export market and will not be sold within South Africa.
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This investment reinforces BMW’s commitment to South Africa, where it has been present for over five decades. The company’s aim is to secure the future of the Rosslyn plant and protect the livelihoods of more than 20,000 individuals employed directly and indirectly by BMW Group South Africa and its supply chain. The investment also highlights BMW’s role as a key player in the South African automotive industry’s transition to a greener economy.
Dr Niklas Fichtmüller, the director of the Rosslyn plant, will oversee the plant’s preparations for the production of the new NEV. This includes implementing a training program for the entire plant and providing specialized training to over 300 associates to support the production of the new vehicle.
The Rosslyn plant has a notable manufacturing history, having produced over 1.6 million vehicles that were exported to more than 40 countries worldwide. Alongside the BMW X3, the factory has manufactured models such as the BMW 1800 SA, BMW 2000 SA, and various BMW 3-, 5-, and 7-series. Currently, the plant employs over 3,500 associates.
South Africa now has three vehicle manufacturers producing NEVs. Toyota has been assembling the Corolla Cross hybrid SUV at its Prospecton Plant in Durban for approximately two years, while Mercedes-Benz has been producing the export-only plug-in hybrid version of the C-Class at its East London plant since 2016. The race is on to see which manufacturer will be the first to produce fully electric cars in South Africa.
The majority of cars manufactured in South Africa are exported to other countries. In 2022, out of the 555,889 cars produced locally, 351,785 were exported to 110 global markets. As demand for electric vehicles grows in these markets, there is an opportunity for South African manufacturers to capitalize on this trend. However, the upcoming ban on selling new petrol and diesel cars in Europe by 2035 has raised concerns within the local manufacturing industry.
