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.

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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.

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Of Bakkies and Batteries: Is South Africa Watching the Rear-View Mirror as Morocco Overtakes?

There’s a palpable buzz around South Africa’s New Energy Vehicle (NEV) scene. The sales figures are undeniably exciting, more than doubling in a year. There’s talk of our famed grassroots innovation, the kind that brought the world the ‘Please Call Me’, poised to execute another stunning leapfrog.

Linda Cele from WesBank isn’t wrong when she says, “We have a proven history of solving for our unique local challenges.”

The organic demand, the growing charging network surpassing global density averages, and the stabilising grid all point to a market itching for ignition. It feels like the beginning of a great South African success story.

But while we’re meticulously charting our domestic course, a glance northwards reveals a competitor that isn’t just navigating—it’s building the highway. Morocco is not quietly positioning itself; it is thunderously declaring itself as the continent’s undisputed automotive powerhouse, and its ambitions are fundamentally different from ours. Where we see a promising market for adoption, they see a global factory for export.

The numbers are staggering. Morocco’s production is sprinting towards one million vehicles in 2025, a figure that will see it overtake Italy—a cornerstone of European automotive heritage. This isn’t happenstance. It is the result of a brutal and brilliant industrial strategy. They leveraged a trifecta of advantages we can only dream of: strategic location a stone’s throw from Europe, labour costs averaging a mere $106 per vehicle, and, most critically, aggressive policy designed to seduce global giants.

While our government touts a welcome but belated 150% tax incentive to attract manufacturers, Morocco’s government has already landed them, backed by billions in Chinese investment for entire EV battery supply chains.

They are not just assembling cars; they are building the ecosystem, from gigafactories to anode plants, capitalising on their own vast reserves of critical minerals like cobalt and phosphates. They have turned themselves into the most cost-efficient manufacturing hub on the planet, a magnet for companies like Hyundai looking to bypass Western tariffs and tap into European and American markets via free trade agreements.

So where does this leave South Africa? We risk becoming a fascinating case study of market potential hamstrung by industrial caution. Our 25% import tax on EVs—a full 7% higher than for internal combustion engines—is a paradox that perfectly encapsulates our lag. It protects a legacy industry while actively punishing the consumers driving the new one. We are celebrating organic demand that is succeeding in spite of policy, not because of it.

Our conversation, as Cele rightly points out, is about Total Cost of Ownership for fleet managers. Morocco’s conversation is about global supply chain dominance. Their growth is export-led, industrial, and strategically geopolitical. Ours remains, for now, inwardly focused on domestic consumption.

This is not to dismiss our progress. The surge in NEV sales is real and impressive. The potential of the African Continental Free Trade Area (AfCFTA) is a game-changer that South Africa is uniquely positioned to exploit. 

As Luthando Vuba of Standard Bank highlights, emerging hubs in Morocco, Nigeria, and Kenya are driving demand for South African components. Africa’s automotive sector is projected to grow to $33 billion by 2033, and we accounted for over 28% of it last year. This is our undeniable strength: deep manufacturing expertise and a formidable component sector.

But herein lies the critical divergence. Morocco is positioning itself as the continent’s factory floor; we risk remaining its premier parts shop. We have the chance to supply the components for the vehicles they are building at a phenomenal scale. It’s a valuable role, but is it ambitious enough? Are we content to feed the value chain, or do we want to own and control more of it?

The path forward requires a dual strategy. First, we must urgently address the domestic policy contradictions. Meaningful consumer incentives and a rationalisation of import duties are essential to accelerate local adoption and make our market attractive for local production.

Second, and more importantly, we must leverage AfCFTA with a ruthless, strategic focus. We may not be able to compete with Morocco’s labour costs, but we can outpace them with our depth of engineering skill, our sophisticated financial services, and our established component manufacturing base. We must become the brain and the nervous system for Africa’s automotive growth, supplying the high-value intellectual property, the sophisticated parts, and the EV technologies that every new assembly plant on the continent will need.

The race is on. Morocco is sprinting ahead in the manufacturing volume game. South Africa’s opportunity is to innovate and integrate at a higher level. We have the history of solving local challenges with unique solutions. Our next great challenge is not just to adopt the electric vehicle revolution, but to define Africa’s place within it—not just as a market, but as a master of its own industrial destiny. The journey is underway, but we must look up from our own dashboard to see who is already pulling ahead.

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Naacam 2025: Strategies for Revitalizing South Africa's Automotive Industry

Against a backdrop of significant industry pressures, key government figures this week committed to tangible interventions aimed at securing the future of South Africa’s automotive components manufacturing sector.

Speaking at the opening of the 2025 National Association of Automotive Component and Allied Manufacturers (Naacam) Show, politicians outlined a multi-faceted approach designed to address immediate threats while positioning the industry for the new energy vehicle (NEV) era.

Nelson Mandela Bay Mayor, Babalwa Lobishe, set a local tone, emphasising the metro's commitment to sustaining existing manufacturers and attracting new investment to the region. Her remarks underscored the critical importance of the sector to the Eastern Cape economy, a point robustly expanded upon by Eastern Cape MEC for Economic Development, Environmental Affairs and Tourism, Nonkqubela Pieters.

MEC Pieters firmly established the province as the cornerstone of South Africa's automotive industry, responsible for exporting over half the country's manufactured vehicles. She pointed to the long-standing presence of major Original Equipment Manufacturers (OEMs) such as Isuzu, Volkswagen and Mercedes-Benz and welcomed the anticipated Stellantis production facility.

However, Pieters did not shy away from the challenges, explicitly citing increased import tariffs, persistent energy supply constraints, and logistical bottlenecks as direct threats to businesses and employment.

"Electricity supply remains the decisive factor in attracting and attaining investment," Pieters says, outlining provincial efforts to diversify the energy mix. These include proposed liquefied natural gas infrastructure development and the accelerated deployment of wind and solar projects.

Furthermore, she detailed plans to enhance freight capacity at the Gqeberha port, finalise a provincial hydrogen strategy, and collaborate with Technical and Vocational Education and Training (TVET) colleges and universities on skills development programmes tailored to the NEV transition.

The national perspective highlighted deeper systemic issues. Minister of Employment and Labour, Nomakhosazana Meth, framed global disruptions as potential opportunities for market diversification into Asia, Latin America and Africa. Yet, she starkly illustrated the sector's fragility by referencing the closure of ArcelorMittal's steel operations in Newcastle and Vereeniging.

"The direct impact is over 3,500 jobs lost in steel production," Meth noted, "with ripple effects across the automotive supply chain potentially pushing total job losses beyond 13 000 in the near term."

While acknowledging a R380-million government lifeline provided through InvestSA and the Industrial Development Corporation, Meth argued for proactive measures. She advocated for a comprehensive steel master plan, built on public-private collaboration, to secure buffer stocks, upgrade mini-mills for OEM-certified steel production, and address underlying competitiveness barriers like energy, logistics, and infrastructure.

To support the NEV shift, Meth confirmed the allocation of R1 billion in state funding aimed at catalysing R30 billion in private investment for local manufacturing projects.

Minister of Trade, Industry and Competition, Parks Tau, presented a sobering analysis of the domestic market. He contrasted 2024’s new vehicle sales of 515 712 units with the South African Automotive Master Plan (SAAM) 2035 target of exceeding 780 000 units. Tau highlighted concerning trends: 64% of vehicles sold domestically are imports, undermining local production, while local content in domestically produced vehicles remains static at 39%, significantly below the 60% SAAM 2035 goal. Compounding this, US tariffs now impact R28,7-billion worth of South African automotive exports.

"These pressures have directly contributed to 12 company closures and over 4 000 job losses within the past two years," Tau says, citing recent production suspensions at Mercedes-Benz and others as symptomatic of industrial value erosion. He stressed that a relatively modest 5% increase in local content could unlock R30 billion in new procurement, far outweighing the potential loss of the R4,4-billion US export market.

Tau detailed specific policy responses. Reforms to the Automotive Production Development Programme Phase 2 (APDP2) are underway, including shifting incentive structures to favour manufacturing over mere assembly.

A critical minerals and metals strategy will prioritise beneficiating platinum group metals, copper, and manganese for high-value NEV components like fuel cells and batteries. Significant tax incentives are also being deployed; the Taxation Laws Amendment Act gazetted in December 2024 introduces a 150% capital allowance for qualifying investments in EV and hydrogen vehicle production assets, applicable between March 2026 and March 2036.

On skills development, Tau confirmed collaborations with Tshwane University of Technology, Cape Peninsula University of Technology, and Unisa to develop new EV manufacturing curricula and certification programmes, culminating in a 100-student pilot project next year. He also reaffirmed commitment to transformation targets, including the SAAM 2035 goal of establishing 130 new black-owned manufacturers.

Addressing the broader investment climate, Tau announced plans for a general laws amendment bill designed to fast-track high-impact investments within 90 days, aiming to reduce red tape. A study via the International Trade Administration Commission (ITAC) will examine the impact of imports on local production.

"Our policy response prioritises offering the carrot, not wielding the stick," Tau concluded, "to attract investment and increase the value-add of our component manufacturers."

The collective message from Gqeberha was clear: the government recognises the severe headwinds facing the auto components sector, from energy instability and logistics failures to global market shifts and job losses.

The pledges made at Naacam 2025 represent a concerted, albeit complex, effort to stabilise the industry through infrastructure investment, policy reform, skills development, and targeted financial support, aiming to navigate the transition towards a more resilient and technologically advanced future. The success of these undertakings will be measured in the coming years by their ability to translate commitment into concrete results on factory floors and in export figures.

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UD Trucks: Driving Positive Change in South Africa

For more than six decades, UD Trucks Southern Africa (UDTSA) has established itself as a fixture within the region, known both for its Japanese-engineered sustainable transport solutions and its active role in community development. The company underscores its 'Better Life' purpose through a range of initiatives focused on skills building, job creation, women's advancement, and safety.

Managing Director Filip Van den Heede emphasised the company's local roots: "South Africa is home for our brand. Our commitment extends well beyond manufacturing trucks; we are dedicated to making a positive contribution to the societies we serve. Our flagship CSR projects reflect this, aiming to create lasting impact in the transport industry and people's lives for a better future."

Shared Purpose Drives Industry Collaboration

A key example is UDTSA's ongoing partnership with SaferStops, united by a vision to improve safety, wellness, and working conditions for truck drivers nationwide. In 2025, UDTSA was a major sponsor of the SaferStops Truck Driver Safety and Wellness Symposium. The event drew 384 delegates, including 191 truck drivers, and 28 sponsors. It prioritised driver wellbeing through health check-ups, vision tests, and workshops covering physical, financial, and emotional wellness on the road.

SaferStops also launched the "Leaders in Motion" series at Stellenbosch University, collaborating with the Department of Logistics. This initiative connected young people with the logistics and transport industry. Van den Heede participated, sharing insights on operational and strategic challenges as a Japanese manufacturer in South Africa and offering students hands-on product experience.

Honouring Mandela Through Community Action

Reinforcing its commitment during Mandela Month, UDTSA supported local communities. The team visited Sinqobile Primary School in Soshanguve, donating school shoes, socks, and fresh fruit to enhance student wellbeing and confidence. UDTSA also assisted SOS Children’s Village Mamelodi, providing vulnerable children with essential items like comforters, fitted sheets, oil heaters for winter warmth, and pine desks and chairs, reflecting the spirit of Ubuntu.

Prioritising Road Safety Nationwide

UDTSA partnered with Fleetwatch as a leading sponsor at the 54th Brake & Tyre Watch event in Potchefstroom. This industry-led initiative educates traffic officials on roadside safety inspections. The 2025 event saw a 97% attendance rate among traffic officials, the highest in three years. Eighty-two officials received training, leading to the inspection of four vehicles (one discontinued, three with tyre faults). UDTSA showcased the advanced safety features of its trucks, highlighting the value of collaboration for safer roads.

Investing in Skills for the Future

Skills development and job creation are central to UDTSA's strategy. The company actively participates in the Youth Employment Service (YES) programme, providing hands-on experience, mentorship, and training to over 40 young South Africans in sales and manufacturing this year. This supports national efforts to address youth unemployment.

Further, as an extension of its Ultimate Women Program with the Commercial Transport Academy (CTA), UDTSA is training ten young women from the YES cohort to become professional truck drivers, empowering them with skills and confidence.

Sustaining the Commitment

Janet Frost, HR Director at UD Trucks Southern Africa, outlined the path forward: "As a significant regional brand, we integrate our Better Life purpose and community needs into our core business. We remain committed to investing in and empowering individuals who will shape the future of our industry and South Africa." Through its CSR initiatives and partnerships, UDTSA pledges to continue sharing its success with the communities supporting it.

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