‘Exclusive global producer’ means every plug-in hybrid BMW X3 SUV in the world is manufactured at BMW South Africa’s Rosslyn plant. Image: Supplied
BMW South Africa plans to start exporting the fourth generation X3 sport utility vehicle (SUV) it produces at its Rosslyn plant near Pretoria to the United States from 2026, but admits this is dependent on “geopolitical outcomes”.
This is a reference to the threat to South Africa’s ability to continue to access the duty-free benefits in the African Growth and Opportunity Act (Agoa) following US President Donald Trump’s executive order halting all aid to the country.
Trump indicated that he issued the executive order because of the South African government’s “shocking disregard of its citizens’ rights” through the alleged expropriation of Afrikaner land without compensation.
The Rosslyn plant is one of only three plants globally that will produce the X3 for world markets (along with BMW plants in the US and China) – and the only plant that will produce both internal combustion engine (ICE) and plug-in hybrid electric vehicle (PHEV) X3 models.
Export oomph
This follows BMW Group’s announcement in 2023 that it will be investing R4.2 billion in its Rosslyn plant over five years to prepare the manufacturing facility for the electro mobility era.
Dewalt Pieterse, BMW SA’s GM of logistics, production systems and production control, confirmed on Tuesday that it has a plan to start exporting the X3 to the US but was coy if this included both ICE and PHEV models.
“That is still to be decided,” he said.
“We have a plan to start exporting to the USA depending on the geopolitical outcomes. We are quite flexible in BMW in repositioning manufacturing locations but there is a plan for us to start exporting to the US but it normally comes a bit later in our [model] portfolio,” he said.
Pieterse said the US is not on the current list of export destinations for X3 models exported from South Africa but “we have a plan to do this from 2026 onwards”.
Production capacity
Ernst Kohlmeyer, GM responsible for quality at BMW SA, said the Rosslyn plant has an annual production capacity of 77 000 units and the plant will be “75 000 units plus” in 2025, the launch year of the fourth-generation X3.
“So, we’re putting South Africa on the map, not only in terms of premium quality but also the numbers,” he said.
Kohlmeyer said production of the fourth generation of X3 started at the Rosslyn plant in October 2024 and it is building “the car for the world”.
He said 3% of X3 production would remain in SA for the domestic market, with the remaining 97% exported “into the world”.
Kohlmeyer said the biggest export market for the X3 produced at Rosslyn is Germany, which will account for 23% of the exports in 2025, followed by Great Britain and Ireland at 18%.
Exclusive producer globally
Pieterse said BMW Group has a strategy of technology openness, which enables the Rosslyn plant to fluctuate with the market to which it exports.
He said it is the first time ever from a BMW perspective that BMW Group has had the trust in the Rosslyn plant to be the exclusive producer of a model, the PHEV X3.
“To me, that is significant. Producing the PHEV for the world really opens up the world for us,” he said.
“We are extremely proud to do this because every car out there that is a plug-in hybrid is manufactured here in South Africa so that is a great story to tell.”
Pieterse said the export split is currently 60% ICE vehicles and 40% PHEVs, but it was noted that the demand for PHEV increased slightly with the production of the fourth generation X3.
“From a European perspective, the PHEV has a higher take-up rate but it varies from market to market [in the EU].
“Many markets get incentivised and therefore the take up would be better.”
Boost for economic growth
Kohlmeyer said BMW had created 5 700 direct jobs in the country, including employment to 2 500 associates in the Rosslyn plant, 500 in the National Sales Centre, and 24 000 through the retail and supplier network.
He said a total of 50 000 indirect jobs were created in South Africa.
“That is something that comes from the investment,” he said.
“Producing both PHEV and ICE models on the same line demonstrates the flexibility and adaptability of Plant Rosslyn, enabling us to effectively respond to global market demands.”
Three-shift production
Kohlmeyer said driven by worldwide demand, the new BMW X3 plays a crucial role in the BMW Group’s strategic electrification roadmap.
He said its production launch is timely, showcasing the Rosslyn plant’s capabilities and commitment to delivering on allocated volume and quality in a three-shift operation, which was reintroduced on 8 January 2025 to meet growing demand.
The plant is projected to produce an average of 110 units per shift (330 per day).
Anuk Maharaj, project lead for the new BMW X3 at the Rosslyn plant, said these production milestones represent the culmination of years of planning and investment in the Rosslyn plant.