The New North African Nexus: How Tunisia, Egypt, and Morocco are Vying for Automotive Supremacy

Something big is happening in North Africa, and it’s not what most people expect. The region’s old image—one of aid packages and political uncertainty—is fading fast. These days, it’s the roar of engines and the hum of factory floors driving the story.

While South Africa continues to dither in uncertainty, the automotive industry is taking center stage, pulling in massive investment and turning the area into a fierce battleground for the future of mobility. Tunisia, Egypt and Morocco are now competing for a spot at the top, each trying to outdo the other – and South Africa – in this billion-Rand race.

Image: Supplied

Tunisia’s latest play is grabbing headlines. After a high-profile visit from Li Shijie—a senior figure in the Chinese People’s Political Consultative Conference—Tunisia’s Foreign Investment Promotion Agency (FIPA) announced a real milestone: 22 Chinese companies are now operating in the country. That’s over R2-billion in foreign direct investment and roughly 1 100 new jobs on the ground.

Sleeves Rolled Up

But it’s not just about handshakes and speeches. At the meeting, FIPA’s Director General Jalel Tebib and Li Shijie rolled up their sleeves and got specific. They’re laser-focused on channeling Chinese investment into Tunisia’s sweet spots: automotive manufacturing, renewable energy, infrastructure, and tourism.

Tebib talked up Tunisia’s open-door policy and business-friendly climate, while Li pointed out the country’s skilled, affordable workforce, its prime location as a gateway to Europe and Africa, and the attractive trade deals that come with it. Both sides are betting big on their partnership, tying it all together with China’s Belt and Road Initiative.

Zoom in to the ground level and you’ll find the real pulse of this industrial shift: local innovators. Enter Bako Motors, a Tunisian startup that’s betting everything on solar-powered vehicles. Instead of following the crowd, Bako is using Africa’s most abundant resource—sunshine—to power their EVs.

Africa’s electric vehicle market is exploding, expected to top R76-billion by 2030. But there’s a catch: most EVs still rely on patchy power grids, which don’t always play nice. Bako Motors spotted a gap. Their solution? Compact cars and cargo vans with solar panels built right into the roof.

Image: Supplied

“Our solar cells cover more than half our energy needs,” says Boubaker Siala, Bako’s founder and CEO. “Look at our B-Van, designed for commercial deliveries—you get free energy for about 50 kilometers a day, which adds up to 17 000 kilometers a year. For businesses watching every Rand, that’s a game-changer.”

Three Wheels

Bako kicked off in 2021 with three-wheeled cargo vehicles, but they’ve quickly leveled up. Now, their four-wheeled B-Van hauls up to 400 kg and delivers a range between 100 km and 300 km. It’s priced from R1,6-million, aimed squarely at logistics and last-mile delivery companies. Their other model, the Bee, is a pint-sized two-seater perfect for city errands, starting at R1,2-million.

Sure, production is still modest—around 100 vehicles—but they’re thinking big. A third model is already on the drawing board, and the team’s gearing up for an export push, hoping their solar-powered EVs will carve out a niche across Africa.

Of course, Tunisia isn’t the only player in the game. Egypt and Morocco, the region’s heavyweights, are ramping up their own efforts with massive investments.

In Egypt, the government’s pulling out all the stops. At a recent ceremony in West Cairo Deputy Prime Minister Kamel Al-Wazir laid the foundation for the new MAC for Mobility Manufacturing Plant, bankrolled by the powerhouse Mansour Automotive Group. Think big—over R2,7-billion in initial investment. The goal? Produce 50 000 eco-friendly vehicles in the first phase alone.

Mansour Group’s chairman, Sir Mohamed Mansour, says the plant will bring in cutting-edge technology and create between 6 000 and 10 000 jobs. This is the start of Egypt’s Automotive Industry Development Strategy, aiming for a homegrown, fully integrated automotive sector. By 2032, they’re targeting annual production of 100 000 vehicles per major manufacturer, including 7 000 EVs, and want at least 35% of every car to be locally sourced.

Image: Supplied

“This factory is the seed of a future automotive city,” Al-Wazir said, framing it as the heart of Egypt’s plan to become a regional manufacturing hub for Africa and the Middle East.

Ramping Up

Not to be outflanked, Morocco continues its relentless ascent. The kingdom is already producing over a million vehicles annually and has plans to ramp this up to 2-million. The latest evidence of its momentum is the opening of a new R300-million factory in the Oujda Technopole by Austria’s Hirschmann Automotive.

The new 22 200-square-metre facility, set to create 600 new jobs, complements the company’s existing plant in Kenitra and underscores the country’s deep integration into global automotive supply chains.

During the inauguration, Khatib El Hebil, the Wali of the Oriental region, captured the sentiment, noting, “Oujda, a city of history and culture, is gradually transforming into a true hub for industrial, logistical, and technological development.”

The Road Ahead

The North African automotive landscape is now a tripartite race. Morocco is the established, export-oriented leader. Egypt is the massive domestic market leveraging its scale and government backing to force a dramatic localisation drive. And Tunisia is the agile newcomer, betting on niche innovation and strategic partnerships to carve out its own space.

For global investors and automotive giants, this competition is a boon, creating multiple, compelling options for manufacturing and assembly. For the continent, it signals the emergence of a sophisticated industrial corridor capable of not just assembling, but designing and engineering the vehicles for Africa’s future. The race for North African automotive supremacy is on, and the finish line is a multi-billion Rand prize.

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Boosting South Africa's Auto Industry Through Local Beneficiation

For decades, South Africa’s automotive industry has been a cornerstone of the local manufacturing sector, a testament to our industrial capability. From the bustling assembly lines in Kariega and Rosslyn to the state-of-the-art plant in East London, we build world-class vehicles. Yet, beneath the hum of this R500-billion-a-year industry lies a profound paradox: we are a mineral-rich nation exporting the very raw ingredients that could see us not just assemble but truly create the cars of the future.

The global automotive industry is undergoing its most significant transformation in a century, pivoting towards electric vehicles (EVs), lightweighting for efficiency and smart, connected technologies. This shift is not just about engines and software; it is a fundamental change in the materials that go into a car. For South Africa, this presents a generational opportunity to move up the value chain. The key lies in local beneficiation—the process of transforming mined ore into a higher-value product.

Here are the five most critical raw materials that, if beneficiated locally, would provide an unparalleled boost to the South African auto industry, creating jobs, fostering innovation, and securing our place in the global value chain.

1. Platinum Group Metals (PGMs): The Crown Jewels of Catalysis and Hydrogen

Image: Implats

The Raw Material: South Africa sits on roughly 80% of the world’s known platinum group metal reserves. These include platinum, palladium and rhodium.

Current State: We are the world’s leading miner of PGMs, but the vast majority is exported as refined metal or concentrate. We capture the mining risk and volatility but miss out on the immense value of specialised industrial and chemical applications.

The Beneficiation Opportunity: The narrative around PGMs is evolving. While their use in catalytic converters for internal combustion engines remains crucial, their role in the hydrogen economy is transformative.

Fuel Cell Electric Vehicles (FCEVs): FCEVs use hydrogen to generate electricity, with water as the only emission. The heart of a FCEV is its fuel cell, which requires significant amounts of platinum as a catalyst. Local beneficiation could see us move from exporting platinum bars to manufacturing catalyst-coated membranes (CCMs) or even entire fuel cell stacks.

·           Green Hydrogen Production: The other side of the hydrogen coin is production. Platinum is also a critical catalyst in proton exchange membrane (PEM) electrolysers, which produce green hydrogen using renewable energy.

The Impact: By establishing local facilities to manufacture fuel cell components and electrolysers, South Africa would not only supply the global auto industry but also catalyse its own domestic hydrogen economy. This creates a symbiotic ecosystem: local platinum enables cheaper green hydrogen, which powers local FCEVs and heavy transport, creating a circular and globally competitive advantage.

2. Aluminium: The Backbone of Lightweighting

Image: South32

The Raw Material: South Africa has a well-established aluminium industry, centred around smelters like Hillside in Richards Bay, which rely on imported alumina. However, we have vast reserves of bauxite and kaolin, the primary aluminium ores, which are largely unexploited for metal production.

The Beneficiation Opportunity: Every kilogram saved in a vehicle's weight translates directly into better fuel efficiency or longer battery range in an EV. Aluminium is the second most used material in vehicles after steel.

Primary and Secondary Smelting: Investing in energy security to make primary smelting more viable, and aggressively expanding the recycling of automotive scrap aluminium, would create a stable, low-cost local supply.

Advanced Alloy Production: Cars do not use generic aluminium; they require specific, high-performance alloys for body panels, chassis components, and battery enclosures. Local beneficiation means establishing plants that can produce these specialised automotive-grade aluminium sheets and extrusions.

The Impact: A reliable, cost-effective source of high-quality automotive aluminium would be a powerful magnet for Original Equipment Manufacturers (OEMs). It would lower the cost of production for local assemblers and make South Africa an attractive hub for manufacturing lightweight vehicle components for export, particularly for the EV market.

3. Manganese: Hardening the Steel of Our Ambition

Image: Implats

The Raw Material: South Africa holds over 70% of the world’s manganese resources, a metal indispensable to modern steelmaking.

Current State: We are the world’s largest producer and exporter of manganese ore, but we export most of it with minimal beneficiation. The real value is in adding it to steel.

The Beneficiation Opportunity: Manganese is a key alloying element that adds strength and wear-resistance to steel. Over 50% of a modern car's weight is still high-strength steel.

Ferromanganese Production: The first critical step is to expand our existing capacity to produce ferromanganese (a key intermediate product). The real prize, however, lies beyond.

Automotive Steel Production: The goal is to channel our local manganese into the production of advanced high-strength steel (AHSS) and ultra-high-strength steel (UHSS) at local mills like ArcelorMittal South Africa. These specialised steels are essential for making passenger safety cages and components that are both lighter and stronger.

The Impact: Creating a fully integrated pipeline from our manganese mines to local AHSS production would decouple our auto industry from volatile global steel prices and supply chain disruptions. It would provide a unique, raw material-based competitive edge for both our vehicle manufacturers and our component suppliers.

4. Iron Ore: The Foundational Metal, Reforged

Image: Arcelor Mittal

The Raw Material: We are a major global producer of high-quality iron ore from the Sishen mine and others in the Northern Cape.

At present, although ArcelorMittal uses some of this ore domestically, a sizeable portion is shipped overseas. The local steel industry has faced well-documented challenges, from energy costs to global competition.

The Beneficiation Opportunity: The opportunity with iron ore is not just about making more steel but making smarter steel specifically for the automotive sector. This goes together with manganese beneficiation.

Direct Reduced Iron (DRI): As the world moves towards greener steelmaking, DRI technology using green hydrogen (itself enabled by local PGMs) presents a path to produce "green steel" with a significantly lower carbon footprint.

Specialised Automotive Castings: Beyond sheet steel, local foundries can use high-purity iron to produce sophisticated engine blocks, brake components and other critical castings, moving beyond basic parts to high-value, precision items.

The Impact: A revitalised, competitive, and increasingly green local steel industry is non-negotiable for a resilient auto sector. It provides the foundational material security without which the industry cannot confidently plan for long-term growth and export-led expansion.

5. Vanadium: Powering the Electric Revolution

Plugged in chargers into two electric cars at charge station

The Raw Material: South Africa is one of the world's top three vanadium producers, with massive reserves housed in the Bushveld Igneous Complex.

Current State: Almost all our vanadium moves overseas as ferrovanadium or vanadium pentoxide, primarily for strengthening steel abroad.

The Beneficiation Opportunity: Vanadium’s star is rising because of one technology: Vanadium Redox Flow Batteries (VRFBs).

Stationary Energy Storage: The stability of South Africa’s auto manufacturing is hamstrung by an unreliable grid. VRFBs are ideal for large-scale, industrial energy storage. They can provide backup power for entire manufacturing plants, mitigating the impact of load-shedding.

EV Battery Ecosystem: While not used in the vehicle's battery itself, VRFBs are crucial for charging infrastructure. They can store solar energy during the day to power fast-charging stations at night, solving a key hurdle for widescale EV adoption.

The Impact: Local beneficiation of vanadium into electrolyte and full battery systems would directly support the auto industry by decarbonising and securing its energy supply. It creates a new, high-growth industry in energy storage that dovetails perfectly with the needs of modern, energy-intensive automotive manufacturing and the EV ecosystem.

The Road Ahead: An Integrated Strategy

Toyota's Prospecton plant

These five materials are not isolated opportunities; they are interconnected. Local PGMs can enable the green hydrogen needed for green iron and steel production. That manganese-rich, green steel, in turn, is used to build the factories and chassis for vehicles whose manufacturing is secured by vanadium batteries and whose powertrains may be powered by platinum-based fuel cells.

Realising this vision requires more than just market forces. It demands a coherent and aggressive industrial strategy—a partnership between government, mining houses, and the automotive industry. This includes:

· Policy Certainty: Creating a stable regulatory environment that incentivises local value-addition over raw exports.

· Investment in Energy: Solving the electricity crisis is the absolute prerequisite. The beneficiation of aluminium, iron and vanadium is intensely energy dependent.

· Research & Development: Establishing centres of excellence focused on mineral beneficiation and its application in the automotive and energy sectors.

The raw materials are beneath our soil. The industrial base is in our factories. The choice is ours: to continue digging and shipping, or to start building, innovating, and powering the next generation of global mobility. The road to a richer, more industrialised South Africa is, quite literally, paved with the minerals we already own.

This article is based on research from the Minerals Council South Africa, the Department of Trade, Industry and Competition (the dtic), Automotive Production and Development Programme (APDP) reviews and reports from the International Energy Agency on critical minerals.

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Archion: Uniting Hino and Mitsubishi Fuso for Sustainable Mobility

Hino Motors and Mitsubishi Fuso, two prominent Japanese truck and bus manufacturers, are moving forward with a significant integration. The new holding company, Archion, will serve as the umbrella for both brands, headquartered in Tokyo.

Operations under the Archion name are set to begin on April 1, 2026. Both Hino and Fuso will retain their distinct brand identities while combining their strengths to support the broader goal of delivering next-generation commercial mobility solutions.

The integration is designed to focus on customer needs and advance sustainable transportation. Key advantages identified include implementing an integrated platform strategy—this is expected to enhance product offerings, expand the portfolio, achieve economies of scale, and improve investment efficiency.

In addition, consolidating production is on the agenda, with plans to focus manufacturing at three main sites in Japan by the end of 2028. Leadership at Archion is emphasizing transparency, compliance, and financial performance.

CEO Karl Deppen has stated the company’s vision centers on providing superior products and solutions for customers and stakeholders, while building trust through effective governance. CFO Hetal Laligi highlighted a clear financial strategy: unlocking the full potential of the integration by realizing synergies and growth opportunities, all while continuing to improve each company’s individual performance.

The aim is to reach benchmark levels of financial resilience and sustainable value creation. Satoshi Ogiso, Archion’s designated CTO, reinforced the commitment to customer-centricity and ongoing product innovation. He also pointed to accelerated development in CASE technologies—Connected, Autonomous, Shared, and Electric mobility—as a central part of Archion’s future direction.

In South Africa, Hino will continue to operate independently, with a focus on maintaining its leadership in customer satisfaction and market presence. Overall, Archion’s formation marks a strategic move. The company is positioning itself as a leader in commercial vehicle mobility, leveraging the combined expertise of Hino and Fuso to drive innovation and sustainable growth in the industry.

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South Africa's Automotive Industry: Challenges and Opportunities Ahead

GQEBERHA – The South African automotive industry, a cornerstone of the nation’s manufacturing landscape, gathered this week to celebrate a significant milestone while charting a deliberate course through a period of global transition.

At the fourth South African Auto Week, naamsa: The Automotive Business Council commemorated its 90th anniversary, reflecting on a legacy of partnership and looking ahead to the challenges and opportunities presented by the global shift to new energy vehicles.

The acting Premier, Mlungisi Mvoko, also serving as the event’s ambassador, opened the proceedings by acknowledging the vital role of media collaboration and the growth of the gathering itself. The event served as a platform to recognise naamsa’s nine-decade journey, which began in this very city before its offices moved to Pretoria in 1983.

The association was lauded for its consistent work in shaping policy, driving innovation, and integrating the domestic industry into international value chains. Today, representing 56 brands, naamsa continues to operate on the principles of free enterprise and collective advancement for its members.

The annual industry report presented a picture of a sector demonstrating resilience amid headwinds. For the first time since the pandemic-related disruptions of 2020, the sector experienced a modest contraction in 2024. The total export value of vehicles and automotive components saw a decrease of R 2-billion, settling at R 268,8-billion, down from the previous year’s record of R 270,8-billion.

Despite this dip, automotive exports still constituted a substantial 40,7% of South Africa’s total merchandise exports for the year. In terms of volume, vehicle exports declined to 390 844 units from 399 809 units in 2023.

A notable bright spot emerged in the components sector, where export value increased from R 203,9 billion in 2023 to a record R 25,4-billion in 2024, a shift attributed to a changing mix of vehicles being exported. The industry also successfully expanded its global footprint, now sending products to 155 countries, up from 148 in 2023, with export value more than doubling to 39 of those nations.

The automotive sector’s role as a primary driver of South Africa’s manufacturing output remains undisputed. In 2024, vehicle and component manufacturing contributed 2,6% to the domestic manufacturing output, with the broader automotive industry contributing 5,2% to the national GDP. Investments from original equipment manufacturers and their suppliers amounted to R 10,25-billion.

A long-term perspective underscores the sector’s enduring impact. From 1995 to 2024, over 6,4-million vehicles, with a cumulative export value of R 1,95-trillion, have been shipped from South African shores. International trade agreements, particularly with the European Union and the United Kingdom, continue to be fundamental, accounting for 75,7% of exports in 2024, meaning three out of every four exported vehicles were destined for these regions.

The current year presents a complex operating environment. Geopolitical challenges, including new US import tariffs, have led to the loss of an estimated 25 000 vehicle orders from that market. Despite this, vehicle exports for the first half of 2025 were 3% ahead of the same period in 2024, even as overall production decreased by 2,2%. Domestically, new vehicle sales showed a strong increase of 14% for the first six months, a trend partly driven by a 69% influx of competitively priced imported vehicles.

A subsequent presentation struck a more cautious note, revealing that South Africa’s share of global vehicle production decreased from 0,67% in 2023 to 0,65% in 2024. This places the government’s 2035 target of achieving a 1% global market share under pressure. A central concern raised was the urgent need to transition towards electric vehicle production, as key export markets like the EU and UK move to ban new internal combustion engine vehicle sales by 2035. While some local manufacturers produce hybrid vehicles, none currently assemble battery electric vehicles domestically.

“The transition to new energy vehicles must be tailormade for a South African context and cannot be a carbon copy of what other countries and regions have done,” Neale Hill, CEO of Ford South Africa stated. He suggested that dramatic overhaul is not needed, but rather selective, targeted policies to support specific parts of the value chain where South Africa can be competitive.

The presentation concluded by highlighting a significant potential advantage. Africa, and South Africa in particular, holds vast mineral resources critical for the EV revolution, including 85% of the world’s manganese and 80% of its platinum. A clear call was made for immediate and structured collaboration between government and industry to develop a concrete framework, positioning the country to become a key player in the global EV value chain and secure the future of the automotive industry and its workforce.

“We are very concerned that our industry is falling behind Africa’s progressive automotive and industrial policy measures,” Hill warned. He concluded that the decisions taken now will fundamentally shape the future of vehicle manufacturing in South Africa, impacting its economic value, employment, and skills base. “We must act now before it is too late,” he said.

Adding to the forward-looking dialogue, Mike Whitfield, CEO of Stellantis South Africa, reflecting on the sector’s foundations, emphasised that its strength is rooted in historical cooperation between government, industry, and labour. He pointed to a major strategic development: the confirmation that Stellantis is proceeding with an investment in South Africa, affirming the country’s role as a strategic manufacturing base within the company’s global network.

This sentiment was echoed in a significant international achievement for the industry. naamsa announced that its CEO, Mikel Mabasa, has been nominated to serve as a permanent member of the International Organization of Automobile Manufacturers (OICA). Described as a “United Nations Security Council for the automotive industry globally,” this position will enable South Africa to help shape the global automotive trajectory and ensure the African continent is not left behind in critical conversations about the future of mobility.

As the week’s discussions concluded, the message from Gqeberha was clear. The South African automotive industry, built on nine decades of collaboration and adaptation, stands at a pivotal moment. The path forward requires agility, policy certainty, and a united effort to harness its inherent strengths—from its deep manufacturing expertise to its mineral wealth—to navigate the electric future and secure its position as a global automotive player.

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Intra-African Trade Fair (IATF): A New Era for African Trade

Africa’s flagship trade and investment event, the Intra-African Trade Fair (IATF), has officially cemented its place as a permanent institution, now headquartered in Harare, Zimbabwe.

This move signals a significant leap forward in Africa’s journey toward economic integration. The launch of the Intra-African Trade Fair Company (IATFCO) at IATF2025 in Algiers marks a new era for the event.

IATFCO is now a standalone organization, designed to ensure the fair’s long-term sustainability and alignment with the ambitions of the African Continental Free Trade Area (AfCFTA). Zimbabwe secured the role of host after a competitive bidding process that included Burkina Faso, Cameroon, Malawi, Zambia, and South Africa.

According to IATF Advisory Council Chairman and former Nigerian President Olusegun Obasanjo, Zimbabwe was chosen for its strong conference infrastructure, excellent air connectivity, abundant accommodation, and its commitment to expansion.

As he put it, this milestone ushers in a new chapter—establishing IATF as the continent’s premier forum for trade and investment, and helping to drive the realization of AfCFTA’s vision. Afreximbank President and Board Chairman Prof. Benedict Oramah congratulated Zimbabwe and called for swift action to operationalize IATFCO as an independent and sustainable organization.

Afreximbank has committed an initial $28-million in capitalisation, with Prof. Oramah urging additional support from African governments, corporations, and financial institutions as the new entity takes shape. IATF’s role as a platform for showcasing African goods and services, facilitating deal-making, and fostering cross-border business connections has never been more vital.

With AfCFTA’s single market of 1,4-billion people and a combined GDP exceeding $3,5-trillion, the opportunities are tremendous.

The most recent fair, held in September, attracted over 112 000 visitors from 132 countries. The event concluded with more than $48,3-billion in signed trade and investment deals and featured 2 148 exhibitors—a testament to the growing influence and momentum of African trade on the global stage.

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Transforming Africa's Auto Industry: Skills, Financing, and Policy

Afreximbank’s renewed partnership with the African Association of Automotive Manufacturers (AAAM) signals a sharp focus on building out Africa’s automotive sector from the inside. They made it official during the recent Intra-African Trade Fair 2025 in Algiers and inked the deal with signatures from Dr Gainmore Zanamwe (Director of Trade Facilitation, Afreximbank) and Ms Martina Biene (President, AAAM).

At its core, the MoU leans on three business pillars: regional value chains, accessible financing and building the right policy environment and skillsets. Dr Zanamwe said Afreximbank is all-in on helping Africa’s auto industry evolve from a patchwork of importers to a real producer. In practical terms? Investing in local manufacturing, creating jobs and reducing the continent’s over-reliance on used car imports.

Biene made it clear—this isn’t just about funding. The sector needs targeted upskilling, better logistics and modern infrastructure. All these pieces need to move together or ambition falls flat. With Afreximbank’s reach and AAAM’s vision, the goal is a continentwide network: connecting suppliers, manufacturers and finance tools so African carmakers stop playing catch-up.

This updated partnership doesn’t stand alone. Coordination with big players—the AU, AfCFTA, ARSO, and others—should streamline standards, upskill the workforce and keep blended capital flowing in. Biene says that, with focus, Africa could be producing at least 3,5–5-million vehicles annually by 2035. Projections like that mean more jobs, stronger local supply chains, and a shot at real industrial gains, not just incremental change.

The numbers at IATF2025 back up the momentum: 112 000 visitors, 2 148 exhibitors from 132 countries, and trade deals totaling $48,3-billion across just seven days. The Africa Automotive Show was a highlight, showcasing not just potential but actionable paths for how the industry could scale up fast.

While the broad terminology ‘automotive’ tends to have its focus on cars, there is a shift in the trucking industry with the show highlighting broad interest from truck manufacturers and, in deed, a new focus on the commercial vehicle sector is emerging as a key topic within Africa’s automotive industry. This follows insights shared by Ezra Mereng, the director of GF Vehicle Assemblers in Tanzania, at the recent Africa Automotive Show held as part of the Intra Africa Trade Fair in Algiers, Algeria.

Mereng detailed the establishment of his multi-brand assembly plant in Dar es Salaam, which began operations during the Covid-19 pandemic. The facility was established to move beyond simple importation and address the needs of Tanzania and its six landlocked neighbours, which rely heavily on the port of Dar es Salaam for trade.

Over the past five years, the plant has assembled more than 4 500 trucks across four brands and 11 different models, including Hyundai and FAW.

A significant driver of demand for these medium and heavy commercial vehicles, according to Mereng, is the number of large infrastructure projects underway across the continent. This demand creates immediate opportunities for local assembly operations to support sectors such as mining and transportation.

The growth of such local operations, however, is heavily dependent on government policy as a key enabler. Mereng noted that regional integration, particularly through the African Continental Free Trade Area (AfCFTA), could be pivotal.

The agreement is expected to help overcome longstanding regional trade barriers. This integration is seen as a way to develop more cohesive regional value chains for components, which would in turn improve investor profitability and enable further investment in local skills and training.

This model of local assembly is already well-established in other parts of Africa. South Africa has a long history of commercial vehicle assembly for major international brands, serving as a manufacturing hub for the region.

Similarly, Kenya has a growing presence in the sector under the East African Community framework. The emergence of assembly operations in Tanzania represents a further expansion of this trend, suggesting a gradual shift towards more localised vehicle production across the African continent.

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Volvo Trucks Launches Euro 6 Assembly in South Africa

Volvo Trucks South Africa is gearing up to assemble its latest Euro 6 trucks at their Durban plant starting in early 2026. This move puts their KwaZulu-Natal site at the forefront of commercial vehicle production in the area.

Mattias Rodier, CFO of Volvo Trucks South Africa’s, said this decision shows the company’s focus on both greener transport and supporting local manufacturing. He added it reinforces the commitment to giving South Africa cleaner, more efficient transport choices.

Mattias Rodier

The Euro 6 standard is a big step up from South Africa's current Euro 2 rules. To get ready, the Durban plant, which was updated in 2022 for Euro 5 production, has been upgraded again.

They've tweaked the assembly line for new parts like AdBlue tanks and special exhaust systems. Plus, they’re investing in team training to keep up product quality.

By assembling these trucks locally, Volvo Trucks can avoid import duties, potentially making these advanced models more affordable. Rodier explained that they’re listening to what their customers need. Building Euro 6 trucks in South Africa helps them meet the rising demand for cleaner tech while keeping prices competitive. The truck engines will come from Volvo’s factory in Skövde, Sweden, and will be shipped to Durban for assembly.

This new Euro 6 production will fit in with the current assembly of Volvo’s heavy-duty truck lines, like the FH, FM, and FMX, improving the plant's overall output.

The Volvo FH Euro 6, already available in South Africa with several horsepower options, is built for long-distance transport, a vital part of the country's economy. This truck is designed to be efficient, aiming to cut diesel use and lower ownership costs for fleet managers.

Volvo Trucks South Africa is also planning to bring in the FH Aero model soon. Currently being tested and approved for South Africa, this aerodynamic truck is viewed as a top choice for long-haul transport. The FH Aero, which won the 2025 Green Truck award in Germany, will come with both diesel and electric options.

Rodier is excited about the model, saying it’s Volvo’s most efficient truck yet as they work to lower CO2 emissions across their product line.

He describes it as a safe, aerodynamic, high-quality truck designed for tough long-haul jobs and customer success, and he looks forward to introducing it to the South African market. A launch date will be announced after testing and approvals are complete.

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Hino South Africa's Strategy for New Energy Vehicles Explained

Hino South Africa has outlined its multi-faceted strategy for new energy vehicles. Itumeleng Segage, General Manager of Hino South Africa, explained the company is pursuing a multipath approach, developing a range of power units to suit different operator requirements.

This strategy includes the continued refinement of internal combustion diesel engines, alongside the offering of diesel-electric hybrids and battery electric trucks in certain markets. The company is also advancing the development of hydrogen as an emission-free power source, with global trials currently underway. Segage noted green hydrogen is considered a suitable energy source for long-haul trucks that operate from depots equipped with refuelling infrastructure.

In South Africa, a trial involving 38 Hino 300 diesel-electric hybrid models is in progress. These vehicles are being operated by customers on a non-ownership basis, with initial data indicating fuel consumption savings in the region of 20%. To facilitate the trial, Hino South Africa is subsidising the acquisition cost. In partnership with Toyota’s mobility brand, KINTO, a low-risk, all-inclusive leasing solution will be provided to selected customers over a four to five-year period.

The Hino 300 Hybrid is designed for urban operations, and five dedicated dealers have been appointed to maintain the vehicles during the trial. The media event also featured a display of the Hino Dutro Z EV, a battery-electric walk-through van already operational in other markets. The van has a one-ton payload and a driving range of 150 km, making it suitable for final mile deliveries. Its 40 kWh lithium-ion battery can be fully recharged in eight hours using a domestic socket.

Satoshi Ogiso, President and CEO of Hino Motors Limited in Japan, addressed the ongoing integration of Hino, Fuso and Daimler into a new global truck entity. Anton Falck, Vice President of Hino South Africa, assured the Hino distribution network and retail model in South Africa will remain unchanged, with a continued focus on the ‘Hino Total Support’ strategy.

Anton Falck (left), the Vice President of Hino South Africa and Itumeleng Segage, 

his General Manager

Falck highlighted the brand’s long-standing presence in the local market, spanning more than 50 years through its parent company, Toyota SA Motors. He attributed the brand’s stability in a competitive market to its reputation for quality, durability and reliability (QDR), which is supported by aftersales service. This is reflected in customer satisfaction surveys; Hino has been ranked first overall in Comparative Customer Satisfaction since March 2020 and has received a Platinum Award in the NADA Dealer Satisfaction Survey for five consecutive years. The loyal client base and committed network of 66 dealers have contributed to an improvement in Hino’s market share, moving from fifth in 2023 to third so far in 2024.

A significant announcement was the introduction of a six-year driveline warranty, provided at no additional cost. This warranty, which is transferable if a truck is sold within its term, is applied retrospectively to vehicles purchased since January 2025.

The warranty is subject to kilometre restrictions dependent on the model and requires adherence to recommended service intervals. Falck described the warranty as an initiative that reflects confidence in Hino’s engineering standards and is supported by its dealer network.

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Illegal Vehicle Imports Hinder African Automotive Goals

ALGIERS – A concerted drive by African nations to build a integrated continental automotive industry is facing a formidable obstacle: the pervasive influx of illegally imported used vehicles and a critical lack of affordable financing for new cars.

This challenge was a central theme at the recent African automotive forum, part of the Intra African Trade Show, where policymakers and industry leaders outlined an ambitious vision to transform the continent from a primary importer of vehicles into a global manufacturing and export hub under the African Continental Free Trade Area (AfCFTA).

Chery Tiggo 2 Pro on display at the Africa Automotive Show in Algiers

A key pillar of this strategy, according to Gainmore Zanamwe, Director of Trade Facilitation for the African Export-Import Bank (Afreximbank), involves “freezing out second-hand vehicles imports” and “incentivising local production” to ensure Africa becomes a “manufacturing hub for mobility” rather than a “dumping ground for vehicles.”

However, this ambition clashes with the current market reality. Data indicates while new vehicle sales across the continent sit at approximately 1,2-million units annually, the number of used vehicle imports, both legal and illegal, far exceeds this figure. In South Africa alone, it is estimated over half a million illegally imported used cars are on the roads, representing a significant drain on national revenue.

“This illegal trade is not just a statistic. It is a direct attack on our economy,” says Martina Biene, President of the African Association of Automobile Manufacturers (AAAM) and CEO of Volkswagen Group Africa: “It drains our fiscus between five and eight billion Rand every year in lost taxes. It undermines our local manufacturers and holds back our industrial development.”

Stellantis stand showing Fiat Panda parts that are made locally

The demand for used vehicles is primarily driven by affordability. High interest rates across many African nations, often reaching double digits, place formal new vehicle financing out of reach for a large portion of the population. Financial institutions also cite challenges with vehicle tracking and valuation as barriers to offering more accessible credit.

“The issue is that high interest rates in most countries are in the two digit levels, and it makes it very difficult for consumers to have access to affordable financing,” added Zanamwe. “This creates a cycle where low demand prevents the economies of scale needed for local factories to produce affordable new vehicles.”

The situation is exacerbated by the practices of some international exporters. Research indicates used vehicles from markets like Japan and Singapore are often sold at very low prices or even written off and shipped abroad, making it impossible for locally manufactured units to compete on price alone.

In response, industry players are exploring innovative solutions. Volkswagen’s mobility solutions program in Rwanda was highlighted as a case study. By offering ride-hailing, car-sharing and subscription services, the model provides access to mobility without the need for a large upfront purchase, effectively addressing the affordability issue through a different business model.

Ultimately, African leaders argue a cohesive policy environment is crucial. This includes finalising the AfCFTA’s rules of origin for automotive products, harmonising standards and developing policies that support localisation while simultaneously creating mechanisms for affordable vehicle asset financing. The success of the continent’s automotive industrialisation depends on its ability to navigate the complex interplay between ambition, consumer reality, and economic policy.

https://bit.ly/3V15xIH

Travel like a rock star

Hold onto your hats, luxury travellers! Roxstar Luxury Travel, the homegrown travel concierge that’s been making waves across the continent, has just upped the ante. The boutique agency, known for crafting those ‘pinch-me’ holiday experiences, has officially launched its own dedicated private aviation service, Fly with Roxstar.

This is a major move for the proudly South African, women-led agency, and its founder, Roxy Robinson, is buzzing. “This is about changing the game,” says Robinson. “We’re throwing the doors wide open to a world of private air travel, making it a more accessible option for our clients who value their time and privacy above all.”

Roxy Robinson

What does that mean for you? Think bypassing the main airport chaos, setting your own schedule, and landing on a remote airstrip just a stone's throw from that exclusive safari lodge. With access to a global network of over 40 000 airports—many of which commercial airlines can’t even dream of touching—Roxstar is quite literally putting the entire map on the table.

“People think private jets are just for champagne and caviar,” Robinson notes with a smile. “And ja, that’s certainly part of the fun. But it’s also about practicality. It’s about getting a groom to his wedding in the Maldives against all odds or whisking an A-lister away to a hidden Patagonian retreat after the Oscars, no paparazzi in sight. We don’t just book flights—we make stories happen.”

Through the new Fly with Roxstar platform, clients can directly compare aircraft, from nimble light jets for a quick business hop to sprawling jets with proper bedrooms for that long-haul comfort. You can peek at cabin photos, check out the amenities, and even book a helicopter to zip you from the tarmac straight to the winelands.

And because it’s a Roxstar experience, the personal touch is never forgotten. Every passenger on a private charter will find a delicious Dubai Pistachio Bar from Dodo Chocolates waiting for them—a nod to Roxy’s own favourite treat.

“It’s the little things that count,” she says. “Our team of aviation specialists is on call 24/7 to handle every detail. We’re not just selling a seat on a plane; we’re managing your entire experience from the moment you get the idea to travel right until you touch down back home.”

Group trips? Also sorted. They can now coordinate charters for everyone from a sports team to an entire film crew.

So, if your travel dreams are starting to feel a little too big for commercial, you know who to call.

https://bit.ly/4fWHXGC