QwaQwa Secures R5,5-Billion Electric Vehicle Plant in Landmark China-Backed Industrial Deal

PHUTHADITJHABA — President Cyril Ramaphosa recently officially launched the Free State Catalytic Investment and Industrialisation Project, unveiling a suite of Chinese-backed industrial initiatives headlined by a R5,5-billion automotive assembly plant that will produce electric vehicles in the Maluti-a-Phofung municipality.

The Joylong Automotive Manufacturing Project, developed in partnership with Chinese investors Joy Long-YJC, represents the most concrete industrial commitment in a broader package of investments announced at the Phuthaditjhaba Multipurpose Centre. The plant is projected to create 1 500 direct jobs over five years and produce up to 8 000 electric vehicles annually.

The project forms part of a larger R120-billion investment programme that includes a R100-billion renewable energy initiative and a R330-million apple juice concentrate facility. While the Presidency initially described the overall package as approximately R100-billion when announcing the launch, the final figure disclosed at the ceremony exceeded R120-billion.

Overview of Special Economic Zone. Image: Supplied

Chinese Partnership

The involvement of Joy Long-YJC follows a provincial investment mission to China in May, during which Free State officials visited manufacturing facilities and held discussions with potential investors. The Free State government is also preparing memoranda of understanding valued at approximately R20-billion with the YJC Group.

President Ramaphosa framed the initiative as part of a broader reindustrialisation strategy for a province that has suffered significant deindustrialisation. “The province is uniquely positioned to be at the heart of South Africa’s economic growth story,” Ramaphosa said at the launch. “If we prepare projects properly, invest in enabling infrastructure and give people the skills and information they need, that ambition can become a reality”.

The President acknowledged that deteriorating municipal services and infrastructure had driven companies to close or relocate from the area, but positioned the Maluti-a-Phofung Special Economic Zone as the vehicle for reversal. “To attract investment to this area, government is committed to providing reliable electricity and water provision, functioning roads, safe industrial premises, efficient approvals and accountable project management”.

Turning Point

Free State MEC for Finance, Economic Development and Tourism Ketso Makume described the SEZ as a direct intervention against the province’s severe unemployment challenges. “The opportunities that are going to be available are going to make sure that we do not leave anyone behind,” Makume said. “Every person must be able to benefit either directly or indirectly, as there are job-related opportunities including business too”.

MAP Executive Mayor Tumelo Thebe emphasised the long-term stakes for residents. “I have a clear understanding that taking care of such will lead to good long-term returns for the people of MAP,” he said.

Questions Remain

While the announcement carries significant symbolic weight for a municipality long associated with service delivery collapse, several operational details remain undisclosed. The Presidency has not provided a detailed construction timetable, confirmed when the projected jobs will materialise, or explained how the full investment will be financed and implemented. The figures announced represent investment values and employment expectations rather than capital already deployed or positions already created.

President Ramaphosa sought to pre-empt concerns about implementation, stating that government would monitor progress over 30, 60 and 90-day intervals to identify and resolve barriers. “Where there are barriers, we must identify them early and resolve them through the proper channels,” he said. During the ceremony, 130 trainees who had completed instruction in plumbing, construction, environmental practices, and electrical systems management were recognised.

The Maluti-a-Phofung Special Economic Zone, designated in 2017 and situated along the N3 freight corridor connecting Johannesburg and Durban, currently hosts sites for 65 factories of which 58% are occupied. For a municipality where unemployment has reached crisis levels, the announcement represents both an economic opportunity and a test of whether industrial policy can translate into operational factories and sustained production.

Joylong Automotive traditionally specializes in large-scale commercial and passenger transport. Their focus for local semi-knocked-down (SKD) and completely knocked-down (CKD) assembly lines is anticipated to target the transition of South African public and commercial transport to electric platforms, including:

- Electric Minibus Taxis: A vital category tailored directly toward South Africa's high-demand taxi industry.
- Light Commercial Vehicles (LCVs):

Electric panel vans and urban delivery vehicles optimized for logistics along the strategic Johannesburg-to-Durban N3 corridor.

- Electric Passenger Buses: Commuter buses for municipal or fleet use.

South Africa’s homegrown EV brand, Mmutla Electric Vehicles, which is setting up its CKD/SKD assembly and chassis testing labs within the exact same MAPSEZ infrastructure, has publicly announced a specific lineup engineered for African roads:

- Electric Minibus Taxis (with dedicated taxi-rank DC fast-charging configurations)
- Bakkies & Small Bakkies (Electric utility pickups)
- City Cars & Compact SUVs
- Luxury Sedans (specifically configured in right-hand drive)

Because the plant is built to support flexible SKD/CKD setups, the manufacturing infrastructure will be capable of handling both heavy commercial fleets (like minibuses) and smaller consumer passenger models as local supply chains mature.

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Africa credit rating agency launched

The African Export-Import Bank has welcomed the launch of the Africa Credit Rating Agency, calling it a defining moment for the continent's financial architecture and its ability to produce credible, independent analysis of African credit risk.

The agency was unveiled recently in Balaclava, Mauritius, with its head office in Port Louis. It is an African Union initiative, overseen by the African Peer Review Mechanism, and structured as a private, self-funded entity. No government may hold a stake, a safeguard meant to keep politics out of the ratings it produces.

The chairperson of the African Union Commission, Mahmoud Ali Youssouf, told those gathered that when risk is judged through a political lens, the resulting cost of capital keeps investors and states from putting money into infrastructure, health, education, energy and industrialisation.

Denys Denya, senior Executive vice president of Afreximbank addresses guests during the launch oftheAfrica credit Rating Agency in Port Louis, Mauritius

That burden, he said, feeds directly into the debt distress many member states are already battling. The numbers bear him out. Africa's external debt service bill climbed from US$61-billion in 2010 to US$163-billion in 2024, and in most countries interest payments now outstrip spending on public health or education. Of the 55 member states, only 32 carry a rating from one of the big three international agencies. A large share of African issuers remain unrated altogether.

Denys Denya, senior executive vice president at Afreximbank, used the occasion to spell out what the new agency must get right. "The rating methodology AfCRA develops must recognise the uniqueness of our environment and its institutional structures," he said. "The Agency must set its own standards and not follow those set elsewhere." He went further: "Most importantly, AfCRA must set a new benchmark for the continent, maintain its independence, and remain wholly owned and controlled by Africans."

Afreximbank has been careful to frame the agency as an addition to the market rather than a replacement for the established international houses. Its worth, the bank says, will not be judged on whether it hands out friendlier scores, but on the credibility of its analysis, the quality of its data and the transparency of its methods.

That matters most where coverage is thinnest, in local-currency debt and in the sub-sovereign space, where cities, provinces and state-owned entities often borrow with no rating at all. Better coverage there would give investors more to work with and help domestic and regional capital markets grow deeper roots.

What this means for the car industry

The timing is hard to ignore. Africa's vehicle assembly sector is pushing through a period of real ambition. The continent built roughly 1,23-million vehicles in 2025, a sliver of the 96,4-million produced worldwide.

South Africa accounted for about 618 077 of those units, while Morocco announced in December 2025 that it had reached 1-million vehicles. Between them, the two countries make up more than 91% of African output. The long-range target is to lift the continent to between 4-million and 5-million vehicles a year by 2035, with battery-electric and hybrid models and their component supply chains included in the plan.

Money is the sticking point. The AfCFTA Automotive Fund already draws on a US$10-billion facility from Afreximbank aimed at developing local content. The African Association of Automotive Manufacturers and the AfCFTA Secretariat signed a memorandum of understanding in October 2026 covering rules of origin, trade facilitation, standards, supplier development and value chain integration.

South Africa's trade, industry and competition minister, Parks Tau, used the Africa Automotive Investment Forum to call for the plan to move from paper to practice, urging governments, financiers, assemblers, suppliers and investors to build bankable projects together.

There is a structural hurdle standing in the way. Corporate ratings on the continent tend to be capped by the sovereign rating of the country where the company is headquartered.

Mercedes-Benz South Africa, for instance, saw its rating pulled down from (P)A3 to (P)Baa1 in step with South Africa's own sovereign downgrades. The effect is that a plant with sound finances still pays a premium for risk it did not create. Denya's point cuts straight to this: large African companies and banks operating across several countries should not have their financial strength tethered to the rating of their home base.

For manufacturers and suppliers with operations spread across South Africa, Morocco, Egypt and Kenya, a rating agency that reads regional supply chains and cross-border production arrangements properly could mean the difference between a project that stacks up and one that does not.

The same goes for the proposed SACU-Egypt automotive pact and similar arrangements, which depend on capital markets pricing risk in a way that reflects how these businesses actually operate.

None of this happens on its own. AfCRA will have to earn its place by being useful, not by being lenient. But for an industry trying to move from assembling kits to building vehicles at scale, a ratings house that sees the continent clearly could turn out to be part of the groundwork.

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Isuzu to launch updated N-Series range in South Africa

Isuzu Motors South Africa will officially introduce the next-generation N-Series light and medium-duty trucks to the market in November, marking a significant milestone in the company's history in the local commercial vehicle market. This comprehensive model change represents the culmination of extensive research, development, and a commitment to addressing the increasingly sophisticated and complex needs of South African fleet operators and businesses.

The new N-Series range, now in its seventh generation, is not merely an update but a strategic reimagining of the commercial vehicle platform, built upon the all-new Isuzu Modular Architecture and Component System (I-MACS). This global platform is engineered to accommodate future technologies and an expanding vehicle range, providing the flexibility to incorporate multiple powertrain options, including alternative energy solutions. While the immediate focus for the South African market remains on advanced, clean diesel technology, Isuzu is actively testing compressed natural gas and battery electric vehicle variants, with bio-compressed natural gas also under evaluation as a future-ready fuel solution.

“Our customers demanded a vehicle that can withstand harsh terrains while actively contributing to the profitability of their businesses. These new models are a result of that research, blending robust engineering with cutting-edge intelligence,” says Mpho Nkhumeleni, Department Executive for Commercial Vehicle Sales at Isuzu Motors South Africa.

“Technology only adds value when it works for the business. With the Next Generation range, we have focused on practical improvements that can support the driver while giving operators better tools to manage efficiency, safety and vehicle performance.”

A Range Engineered for Every Application

The initial lineup introduces key models designed for a variety of operational requirements, all equipped with cleaner Euro 5 emission-compliant engines:

- NMR 250 AMT: Available in short wheelbase and crew cab configurations, offering enhanced manoeuvrability for urban deliveries.
- NPS 300 AMT: Offered in single and crew cab derivatives, this model has been specifically optimised with a new Automated Manual Transmission (AMT) for superior off-road capability and driver guidance.
- NPR 400 CNG: The compressed natural gas variant, available with manual or AMT, is scheduled for introduction shortly after the launch, providing a lower-emission solution for urban and regional routes.
- NQR 550: This new model is strategically positioned at the upper end of the medium-duty segment, delivering increased payload capacity and enhanced operational efficiency.

Technology and Safety at the Forefront

The new N-Series is equipped with a host of technological advancements aimed at enhancing driver experience, fleet management, and safety:

- Advanced Powertrain and Transmission: The introduction of Euro 5-compliant engines with advanced exhaust after-treatment systems ensures significantly reduced emissions without the need for AdBlue or other additives, simplifying operation for fleets. The new AMT models, particularly on the NPS 300, feature built-in warnings and smoother control logic, providing enhanced durability and driver guidance, especially in demanding off-road conditions.
- Isuzu Insight Telematics: Each truck comes standard with a two-year subscription to the Isuzu Insight fleet management portal. This system provides comprehensive business intelligence dashboards, vehicle servicing reminders, and proactive alerts to optimise fleet efficiency. The service is opt-in by default, ensuring transparency and control for the customer.
- Uncompromising Safety Standards: Safety remains a cornerstone of the new N-Series. The cab is built to the rigorous ECE-R29 safety standard, providing superior occupant protection in the event of a collision. Enhanced visibility is provided by standard Bi-LED headlamps with Daytime Running Lights (DRL), LED fog lamps, and a new ‘wet wiper’ system that improves washability and visibility. Furthermore, the cab’s front panel incorporates energy-absorbing space to reduce injury to pedestrians and other vulnerable road users in low-speed impacts.
- Enhanced Driver Comfort and Ergonomics: The newly designed cab offers a more comfortable and productive work environment. Improvements include a more efficient air conditioning system, a smaller diameter steering wheel for better control and easier ingress/egress, a suspended accelerator pedal to improve foot clearance, and a new mechanical suspension seat for optimal driver support. The multi-information display in the instrument cluster provides key vehicle data, including fuel economy and an integrated engine hour meter, eliminating the need for aftermarket units.

Chassis and Electrical Upgrades for Superior Performance

The new N-Series platform features a strengthened, yet lightweight, chassis frame with a wider 850mm width and increased height for models from the NPR 275 upwards, contributing to greater stability and payload capacity. A new power-assisted braking system has been introduced to deliver more consistent and reliable braking performance across all models.

A New Chapter for Isuzu in South Africa

With the introduction of the seventh-generation N-Series, Isuzu Motors South Africa is not only reinforcing its leadership in the light and medium-duty truck segments but also demonstrating its long-term commitment to the South African market. This model change represents a significant investment in local operations and a clear vision for the future of commercial transport, balancing current performance needs with the forward-looking demands of decarbonisation and digital transformation.

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Major investment by Isuzu

Isuzu Motors South Africa has invested just under R30 million in its commercial vehicle assembly plant in Gqeberha, a move the company says will strengthen local manufacturing capability and support its long-term commitment to South Africa's industrial and economic future.

The investment covers a range of upgrades across the commercial vehicle assembly operation. According to the company, the changes are intended to improve manufacturing capability and efficiency, strengthen quality control and digital traceability, improve employee safety and ergonomics, and support more sustainable production. Together, these improvements are expected to strengthen the plant's ability to manufacture commercial vehicles efficiently and competitively while responding to the changing needs of customers in South Africa and across the continent.

"This investment is about more than preparing our plant for a new generation of trucks. It reflects our long-term vision for manufacturing in South Africa and our confidence in the country's people, industrial capability and potential," said Johan Vermeulen, Executive Vice President: Manufacturing and Product Engineering at Isuzu Motors South Africa. "By continuing to invest in our Gqeberha operations, we are strengthening the capability and capacity needed to remain competitive and respond to the evolving mobility needs of customers across Africa."

Upgrades to the chassis and engine sub-assembly areas, as well as cab marriage, have strengthened the plant's manufacturing capability and operational flexibility. The extended chassis line allows the facility to accommodate additional stations for added content, while updated tooling and revised production layouts improve the plant's ability to support a broader range of commercial vehicle applications.

The investment also includes production and technology enhancements aimed at improving manufacturing efficiency and maintaining consistent build quality. Improved processes, tooling and digital traceability provide greater visibility across production and strengthen quality control, helping the plant manufacture vehicles more efficiently while maintaining Isuzu's build standards.

Employee wellbeing formed part of the plant upgrades, with safety and ergonomics considered in equipment selection, workstation design, lighting and workflow improvements. New equipment, including a fuel-tank gripper, lift-assist devices, a cab-marriage hoist, electronic torque tools and enhancements to the engine-dress process, is designed to reduce physical strain and support safer, more efficient working conditions for employees.

Sustainability considerations have also been incorporated into the upgrades through energy-efficient tools and motors, improved equipment and revised workflows designed to support more efficient use of resources. These improvements contribute to the company's broader focus on reducing the environmental impact of its manufacturing operations while improving operational efficiency.

The investment also strengthens the plant's progress in preparing for evolving commercial vehicle technologies. The implementation of the upgrades involved employees and cross-functional engineering teams across the business, bringing together manufacturing expertise, technology and continuous improvement to ensure the enhancements respond to both current operational requirements and future manufacturing needs.

Through continued investment in its Gqeberha operations, Isuzu Motors South Africa says it is strengthening the manufacturing foundation required to support its long-term growth while contributing to a competitive, resilient and increasingly sustainable automotive manufacturing sector in South Africa.

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UD Trucks adds service exchange deal

UD Trucks Southern Africa has introduced a Service Exchange Programme as part of a broader effort to strengthen its aftermarket offering. The programme gives customers an additional option when replacing major components, alongside repairing an existing part or buying a new one.

Under the programme, customers can exchange eligible worn or damaged components for professionally restored units. The offering launches with engines, gearboxes and injectors. UD Trucks plans to extend it to components such as cylinder heads, starters, alternators, turbochargers and retarders in later phases.

For operators of commercial vehicles, replacing a major component affects vehicle availability, operating costs and productivity. Service Exchange is intended to give customers another option to weigh up when making that decision.

Filip Van den Heede, Managing Director of UD Trucks Southern Africa, said the company's focus is on delivering value beyond the initial vehicle purchase and supporting customers throughout the life of their trucks.

When a component qualifies for replacement, a UD Trucks dealer assesses the vehicle and establishes whether a Service Exchange unit is available and suitable. The customer's worn component, referred to as the core, is returned according to programme requirements so it can potentially be restored and used again.

The option sits between repairing an existing component and buying a new replacement. Depending on the application, component availability and repair needs, UD Trucks says Service Exchange can help customers manage maintenance spending and vehicle downtime. Service Exchange components carry a one-year warranty, subject to the applicable terms and conditions.

Sanjay Naipal, Aftermarket Director at UD Trucks Southern Africa, said customers work in different environments and have different business priorities, so the aftermarket offering cannot be one-dimensional. He said Service Exchange adds another solution to the company's portfolio and allows it to engage with customers earlier in the repair decision.

The programme also affects the dealer network. Service advisors and workshop teams can now discuss a wider range of options when a major component needs replacing. Instead of treating a replacement as a single transaction, dealers can help customers assess options based on vehicle application, component eligibility, availability, operating requirements and overall value. UD Trucks says this supports the dealer's role as a long-term business partner rather than only a point of repair.

Deon Fourie, General Manager: Commercial Parts at UD Trucks Southern Africa, said the programme gives dealers another way to show the value of the UD Trucks aftermarket and creates an opportunity for more meaningful discussions with customers about their operational needs. The aim, he said, is to help customers make informed decisions while keeping their vehicles productive. The programme also creates further opportunities for dealers to stay engaged with customers over the vehicle lifecycle.

Service Exchange also supports a more circular approach to component management. Suitable cores can be recovered, professionally restored and returned to service, which reduces the need for every replacement to result in a new component. UD Trucks says this supports both the commercial and sustainability objectives of its aftermarket proposition.

The introduction of Service Exchange forms part of the company's Ultimate Dependability offering, which brings together its aftermarket capabilities around three areas: Ultimate Value, Ultimate Partnership and Ultimate Performance.

The programme initially covers engines, gearboxes and injectors, with more components planned for future phases. Customers who need a replacement engine, gearbox or injector can contact their nearest UD Trucks dealer or service advisor to find out whether a Service Exchange solution is available for their vehicle. Dealers can provide information on component eligibility, availability, pricing, core-return requirements and warranty coverage.

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UD Trucks positions itself as long-term partner for Southern African fleet operators

Transport operators in Southern Africa continue to face a difficult operating environment, with rising costs, driver shortages and mounting pressure to run leaner, more efficient fleets. In response, UD Trucks Southern Africa has outlined a broader approach to customer support, built around what it calls Ultimate Dependability, aimed at assisting operators for as long as their vehicles remain in service.

The company frames the initiative around three areas: partnership, performance and value, each intended to address a different part of a transport business's day-to-day operations.

On the partnership side, UD Trucks says it works to understand how individual fleets function rather than applying a one-size-fits-all approach. Tools such as My UD Fleet, Vehicle Health Monitoring and its Eco Coach Report and Fuel Consultancy service give operators data on vehicle performance, driver behaviour and fuel use, which the company says can help with decisions around utilisation and cost control. This is supported locally by UD Trucks' dealer network.

Filip Van den Heede, managing director of UD Trucks Southern Africa, said the needs of transport operators went beyond the vehicle itself. "Our customers operate in some of the most demanding transport environments, and their needs go far beyond the truck itself," he said, adding that the company's aim was to support customers throughout the working life of a vehicle, not only at the point of sale.

On performance, the company points to preventative maintenance, servicing and diagnostics as ways of reducing unplanned downtime. This includes UD Genuine Service, UD Certified Technicians, and UD Genuine Parts and Lubricants, along with services such as Remote Vehicle Diagnostics and Smart Service Planning that are intended to flag problems before they escalate. 

Driver training also features, with UD Driver Training aimed at improving how vehicles are operated on the road. The company has also introduced UD Smart Cam, currently available on selected Quester Truck Tractor models, as an added layer of driver support.

Sanjay Naipal, director of aftersales at UD Trucks Southern Africa, said the intention was for vehicles to keep delivering value well after purchase. "Our role is to help customers protect uptime through the right combination of genuine parts, professional service, maintenance expertise, diagnostics and technical support," he said.

The value component centres on total cost of ownership and return on investment. UD Trust Service Agreements offer structured maintenance planning, while UD Road Support provides roadside assistance and Mobile Workshop services bring technical support closer to where operators are based. Genuine parts and selected remanufactured components are positioned as a way of managing repair costs and turnaround times.

Naipal said the value a truck offered a customer was not limited to its purchase price. "It is about what that truck delivers for the customer over its entire working life," he said, describing the company's aftersales approach as centred on managing total cost of ownership while keeping vehicles on the road for longer.

Taken together, the three areas reflect an attempt by UD Trucks Southern Africa to position itself as more than a vehicle supplier, extending its role into maintenance planning, driver development and ongoing technical support. The company says this approach forms part of its broader positioning as a total transport solutions partner in the region.

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Volvo Trucks Wins International Award for Electric Model

Volvo Trucks has received an international industry award for its electric truck range. The recognition marks the company’s eighth win of the accolade and the second time its FH Electric model has been named International Truck of the Year. The award acknowledges electric transport as a workable option across a growing number of applications.

The heavy-duty electric line-up, which includes the Volvo FH, FM, FMX Electric and FH Aero Electric, was selected as International Truck of the Year 2027. According to the company, the range offers a driving distance of up to 700 km, along with improved payload capacity and shorter charging times than earlier models. It is intended for regional and long-haul transport, city distribution, construction and utility work.

The jury noted how Volvo has expanded its electric portfolio beyond a single vehicle or use case. It highlighted the combination of longer range, different cab and chassis configurations, and various solutions that can be adapted to different transport tasks.

Florian Engel, chairman of International Truck of the Year, said the winning range represents a significant development in the company’s battery-electric heavy-duty offering. He added that it shows how quickly battery-electric heavy-duty transport is shifting from individual applications towards a broader transport solution.

Roger Alm, president of Volvo Trucks, received the award during a ceremony at IAA Transportation in Hanover, Germany. He said the recognition confirms the company’s position in electromobility and noted strong demand for the new electric trucks, with the order book almost full. According to Alm, the range allows more operations to choose transport with zero tailpipe emissions.

Since 2019, 7,000 electric Volvo trucks have covered 500 million kilometres worldwide. Close to 2,000 customers in more than 50 countries currently use electric Volvo trucks in their daily operations.

Volvo Trucks offers eight electric truck models designed for a range of transport assignments. Over seven years of electrification, the company has developed expertise in optimising energy usage, charging and service for electric trucks.

The International Truck of the Year organisation was established in 1977 and consists of 24 commercial vehicle journalists from major trucking magazines across Europe. The annual award goes to the truck introduced to the market in the previous 12 months that has made the most significant contribution to road transport efficiency. Judges assess criteria including technological innovation, comfort, safety, drivability, energy efficiency, environmental impact and total cost of ownership.

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Africa Automotive: ARC Ride Launches Electric Motorcycle Fleet with $33M

Kenyan electric mobility company ARC Ride has closed a US$33,3-million funding round, equivalent to approximately R538-million and confirmed its entry into the South African market alongside planned expansions into Ghana, Tanzania and Uganda.

The equity and debt round was led by Norrsken22 and Novastar Ventures, with participation from the International Finance Corporation, British International Investment and Proparco. Existing investors Musashi Seimitsu and Talanton also committed further capital, while debt financing came from BII's Kinetic programme and Mirova.

ARC Ride operates a battery-as-a-service model for two and three-wheeler transport. Rather than purchasing batteries outright, riders exchange depleted units for charged ones at swapping stations, reducing upfront costs. Its clientele includes Yadea, one of the world's largest electric vehicle manufacturers.

The company has already begun operations in South Africa following a pilot in Cape Town, with a vehicle rollout underway in Gauteng. The funding will support the addition of 5 000 motorcycles to its fleet and expansion of its battery-swapping network.

ARC Ride founder Jo Hurst Croft said the funding would allow the company to scale the infrastructure required to support the transition to electric mobility across the continent.

The expansion into South Africa comes as the country's automotive export sector confronts a regulatory deadline in its largest market.

The Motor Industry Staff Association has warned South Africa risks losing access to its largest automotive export market unless government urgently enacts an end-of-life vehicle regulatory framework.

Approximately three out of every four vehicles exported from South Africa are destined for Europe. According to Naamsa's 2026 Automotive Trade Manual, the total export value of vehicles and automotive components reached R291-billion in 2025, with R182,8 billion, or 62,8%, going to the European Union and the United Kingdom.

The EU's Regulation 2026/1738 on circularity requirements for vehicle design and management of end-of-life vehicles entered into force on August 13 and introduces requirements covering circular vehicle design, recyclability, digital documentation and recycled material content.

New vehicles will have to contain at least 15% recycled plastic from September 2032, increasing to 25% from September 2036.

MISA argues a domestic ELV framework would help the local automotive industry recover recycled materials and align with the EU's requirements. The union maintains that establishing a formal framework would also create an industrial opportunity to protect existing employment and create new jobs.

South Africa's automotive sector contributes 5,2% to gross domestic product and supports around 500 000 formal jobs across the wider automotive value chain.

The Department of Trade, Industry and Competition has established a task team to evaluate the terms of reference for an end-of-life vehicle strategy, though timelines for implementation remain unclear.

BYD, which has a growing footprint in South Africa appears to looking for investment opportunities in Tunisia, including the possible creation of companies and development of activities beyond the manufacturer's current commercial presence.

BYD is distributed in Tunisia by Hélios Cars. The manufacturer recorded 857 cumulative registrations between January and July 2026 across plug-in hybrid and fully electric segments, leading the former with 564 units and placing second in the latter with 293 units.

The Tunisian side highlighted the country's position as a logistics crossroads between Europe, Africa and the Arab world, its automotive sector already integrated into international value chains, and an experienced workforce. Discussions covered automobile production, electrical infrastructure for electric and hybrid vehicles, and possible technology transfers in energy.

Chinese companies have announced approximately US$6-billion in investments in Morocco since the pandemic, according to the Financial Times. Projects span from Tangier to Kenitra, covering battery materials, tires and vehicle components.

Battery manufacturer Gotion High-Tech is building a US$1,3-billion factory in Kenitra. Guizhou Tire is establishing a passenger vehicle tire facility in Tangier Tech City with a planned investment of approximately US$298,7-million.

Wake up South Africa!

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Ford SA Marks Centenary with Pledge to Drive Industrialisation Forward

Ford Motor Company of Southern Africa has marked its 100th year in the country with the release of a corporate manifesto that reaffirms its commitment to local manufacturing, skills development, and policy reform. The document, unveiled by Africa Operations President Neale Hill, signals a shift from commemorating the past to shaping the next phase of the company’s role in the domestic economy.

Hill described the manifesto as a deliberate statement of intent, rather than a commemorative exercise.

“When you reach a milestone, the tendency is to look back. But that is not what the economy or the automotive sector needs right now,” he said. “We are facing significant changes, and our focus must be on clarity about the future.”

The company has called on government, industry bodies, and other stakeholders to collaborate on creating conditions that allow local manufacturers to compete effectively against imported vehicles. Hill noted that while many companies position themselves as invested corporate citizens, few have a track record spanning generations.

“This is not a marketing exercise. It is a signal that we are moving from a moment of celebration to a sustained focus on national momentum,” he said.

Policy Concerns and Competitive Balance

Beyond its symbolic value, the manifesto carries a clear policy message. Ford has raised concerns about the structural advantages enjoyed by importers who do not carry the same capital, employment, or skills development obligations as local producers. Hill stressed that the company has long functioned as more than a manufacturer, describing Ford as a builder of industry capability, community infrastructure, and national skills.

“We will continue to invest, build, and employ. But we also need policy and regulatory conditions that allow us to compete fairly,” he added. The company is advocating for the continued refinement of programmes such as the second phase of the Automotive Production and Development Programme (APDP2) to ensure that investors are not placed at a disadvantage relative to those who do not share the same level of commitment to South Africa.

Hill emphasised that the push for fairness is not about protectionism. “It is about protecting the substantial investments already made in this country, and those still to come, from being undermined by uneven operating realities,” he said.

A Call for Collective Action

Ford has extended an invitation to policymakers, industry partners, and fellow manufacturers to support a regulatory framework that encourages local industrialisation, safeguards existing investment, and fosters continued growth. The company believes that a balanced playing field benefits not only manufacturers but also the hundreds of thousands of South Africans whose livelihoods depend on a stable automotive sector.

The manifesto will be distributed across brand, dealer, and internal communications channels. It forms part of Ford’s broader strategy to reinforce its long-term commitment to local production, export growth, and community investment. According to Hill, the document represents the company’s clearest public pledge to build on its century-long heritage while advocating for an industry that remains competitive, sustainable, and rooted in South African capability.

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Mercedes-Benz Delivers Low Entry Buses for Putco

In a significant step towards inclusive public transport, Putco has taken delivery of six Mercedes-Benz Low Entry buses designed specifically with universal accessibility as a core principle from the outset.

The vehicles, built on the Mercedes-Benz OH 1826 LE Euro 5 Low Entry Bus Chassis and fitted with the Marcopolo Tourino G7 Low Entry Body, represent the first universally accessible buses to join the Putco fleet. Their design makes boarding and alighting considerably easier for elderly passengers, people living with disabilities, parents travelling with young children, and commuters with limited mobility.

The new buses come equipped with fitted ramps and dedicated space for wheelchairs, along with priority seating for passengers who may require it. The buses can also lower themselves closer to pavement level to further improve accessibility. Importantly, Putco engaged with organisations including the South African Disability Alliance and the National Council for Persons with Disabilities throughout the design process to ensure the vehicles responded to the real needs of passengers living with various disabilities.

"This handover is about more than delivering buses," said Deon de Vries, General Manager for Mercedes-Benz Buses in Southern Africa. "It reaffirms Mercedes-Benz Buses and Putco's shared commitment to delivering safe, dependable and customer-focused transport solutions that support South Africa's public transport network." 

Deon de Vries and Mandy Latimore

Franco Pisapia, Chief Executive Officer of Putco, described the occasion as a significant day for the company. "These low-entry buses are the result of a true partnership between an operator, a chassis manufacturer and a body manufacturer. What started as an idea evolved into a design, then a prototype, and today that prototype has become the foundation for a new generation of more accessible buses for Putco," he said.

The project is part of a broader trend in South Africa towards more accessible public transport. In the Western Cape, GO GEORGE has also made significant strides, with every bus in its fleet – whether mini, midi or standard – fitted with ramps or hydraulic hoists to ensure dignified boarding for passengers with mobility impairments. The service reports that passengers with disabilities make up 0,85% of total ridership, amounting to more than 4 000 trips monthly. Western Cape Mobility Minister Isaac Sileku has described accessibility as "not an add-on; it is a fundamental right”.

Putco already runs two buses accommodating people with disabilities in the Soshanguve and Mpumalanga regions, with the Mpumalanga bus transporting disabled learners to schools and the Soshanguve bus providing daily transport to the Tshwane CBD for work purposes.

Disability inclusion specialist Mandy Latimore, who took part in consultations, said the introduction of the buses marked a major step towards greater accessibility in public transport, while noting that truly accessible mobility also depends on infrastructure at bus stops, interchanges and destinations.

"For Putco, accessibility is not just about buses," Pisapia added. "It is about connecting people to opportunities and ensuring that no one is left behind”.

The six buses are expected to enter service on Putco routes shortly. The company, which transports more than 230 000 commuters daily across Gauteng, Mpumalanga and Limpopo, has not yet indicated which routes will be served by the new vehicles.

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