Isuzu navigates African growth amid global headwinds

While global automotive markets grapple with electric vehicle transitions and supply chain turbulence, Isuzu Motors South Africa is charting a different course — one anchored in diesel-powered pragmatism and intra-African ambition.

The company’s recent strategy reveals reveal a brand doubling down on its commercial vehicle stronghold while cautiously eyeing continental expansion, even as South Africa’s automotive sector faces existential pressures.

Local Leadership in a Shifting Market
Isuzu’s dominance in South Africa’s commercial vehicle segment remains unshaken, with 12 consecutive years as medium/heavy truck market leader. Despite a 3% dip in national new vehicle sales for 2023, the brand maintained an 18,5% share in light commercial vehicles and 28% in trucks — a resilience executives attribute to fleet operators prioritising total lifecycle costs over flashy tech.

“We’re a truck company that also sells bakkies,” remarked CEO Billy Tom during a recent briefing, referencing commercial vehicles’ 59% contribution to global revenues. This focus has proven strategic: while passenger vehicle imports now dominate 44% of South Africa’s market (34% from India, 10% China), Isuzu’s truck-centric portfolio insulates it from the worst of this consumer shift.

The African Opportunity Puzzle
Africa accounts for just 9% of Isuzu’s global sales but represents its fastest-growing region. The company now ships 25% of its Port Elizabeth (Gqeberha) plant output to neighbouring states, with plans to deepen ties in East and West Africa. Yet barriers persist:

- Trade Tangles: A 76-day coffee shipment from Kenya to Ivory Coast exemplifies intracontinental logistics hurdles. Only 15% of South Africa’s automotive exports stay within Africa — 75% of which go to immediate neighbours.
- Assembly Gaps: While Egypt, Morocco, and Algeria emerge as regional hubs, South Africa’s share of continental vehicle production has slid from 63% (2020) to 53% today.

Tom advocates for shared assembly plants: “Why can’t multiple manufacturers use combined facilities, like India’s small-car hubs?” This approach already underpins Isuzu’s X-Rider bakkie — a budget model partially assembled locally using imported kits.

EVs vs. Energy Transition Realities
While testing electric trucks in Norway and the UK, Isuzu’s African strategy prioritises transitional fuels:

- Dual-Fuel Diesel/CNG Trucks: Operational for two years in SA, offering 20%-30% emissions cuts without infrastructure overhauls.
- Euro 5 Diesel: Simplified after-treatment systems avoiding AdBlue dependency.
- Dual Fuel: Locally developed gas-diesel blend gaining traction in logistics fleets.

“Africa can’t be rushed into EVs,” he says. “Our data shows hybrids account for 85% of SA’s 3% ‘new energy’ vehicle uptake — customers want compromise, not revolution.”

Battling the Import Wave
The real threat comes from Asian imports. Indian-built vehicles now claim 34% of SA’s market (up from 17% in 2018), while Chinese brands grab 10%. Isuzu responds with:

- Localised Production: 75% of Port Elizabeth’s output stays in Southern Africa.
- Tactical Imports: Using export credits to bring niche models like the D-Max-based MU-X SUV.
- Skills Investment: Maintaining 116 000 automotive jobs through technical training programmes.

Looking North
Isuzu’s endgame hinges on Africa’s logistics evolution. Tom cites stalled progress on the African Continental Free Trade Area (AfCFTA): “We need dedicated cargo corridors — not passenger planes doubling as freight carriers.”

Recent tests of regional assembly in Zambia and Mozambique aim to reduce dependency on SA’s strained ports.

As the company marks 60 years of truck manufacturing in South Africa, its path forward balances gritty realism with guarded optimism. In a market where 44% of vehicles sold are imported, Isuzu’s truck-led pragmatism may yet prove the template for African industrial survival.

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Africa Automotive - All eyes on Algeria for IATF2025

Algiers is set to become the epicentre of Africa’s automotive industry as it hosts the Africa Automotive Show, a flagship event at the Intra-African Trade Fair (IATF) 2025. From September 4 to 10, 2025, the Democratic People’s Republic of Algeria will welcome industry leaders, innovators and policymakers to what promises to be a transformative gathering for the continent’s automotive sector.

Organised by Afreximbank, the African Union, and the African Continental Free Trade Area (AfCFTA) Secretariat, the event builds on the momentum of IATF 2023 in Cairo, where trade deals worth a staggering $43,8-billion were sealed, attracting more than 28 000 visitors and 1 939 exhibitors.

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The Africa Automotive Show is more than just an exhibition; it’s a strategic platform designed to accelerate the growth of Africa’s automotive industry. With intra-African trade currently accounting for just 14% of the continent’s global trade, the event aims to boost collaboration, innovation and investment in a sector that is increasingly seen as a cornerstone of Africa’s economic future.

Africa’s automotive potential is no longer a distant dream but a tangible reality. The continent is fast becoming a hub for both local and international players, with the African Association of Automotive Manufacturers (AAAM) leading the charge.

Victoria Backhaus-Jerling, AAAM’s newly appointed CEO, describes the moment as pivotal: “Our goal is to elevate the African market demand to between three and five million units by 2035,” she says. “This is a significant leap from where we are today, but it’s achievable with the right collaboration and investment.”

Victoria Backhaus-Jerling

The Africa Automotive Show will feature a two-day forum alongside a dedicated exhibition, creating a space for dialogue, partnership and progress. The event will bring together stakeholders from across the automotive value chain, including raw material suppliers, manufacturers, dealers and financial partners. It will also serve as a platform to showcase Africa’s achievements in the sector while laying the groundwork for future growth.

The 2023 edition of IATF in Cairo set a high bar, demonstrating the power of collaboration and the potential of intra-African trade. The Africa Automotive Show at IATF 2025 aims to build on this success, with a particular focus on advancing the continental automotive strategy approved by AfCFTA member states earlier this year.

This strategy, developed with input from AAAM, Afreximbank, and the AfCFTA Secretariat, aims to strengthen regional supply chains, boost local manufacturing, and promote African-made solutions.

One of the key challenges facing the industry is the dominance of used vehicle imports, which currently account for a significant portion of Africa’s automotive market.

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Backhaus-Jerling emphasises the need for a phased approach to reducing these imports. “The volume of used vehicles dilutes the opportunity for local manufacturing and after-sales services,” she explains. “By investing in local production, we can create jobs, empower communities, and build a resilient intra-African supply chain.”

As the host nation, Algeria is poised to play a leading role in shaping the future of Africa’s automotive industry. The country has recently implemented policy reforms to attract investment and boost local manufacturing. Major assembly plants, such as those operated by Stellantis, have already been established, signalling Algeria’s commitment to driving industrialisation and inspiring similar developments across the continent.

Algeria’s strategic location and growing infrastructure make it an ideal host for the Africa Automotive Show. The event will not only showcase the country’s progress but also highlight its potential as a key player in Africa’s automotive ecosystem.

The Africa Automotive Show is more than just a trade event; it’s a gateway to an integrated African market of some 1,3-billion people and a combined GDP exceeding $3,5-trillion. Enabled by the AfCFTA, this market represents a wealth of opportunities for industry players, from raw material suppliers and manufacturers to dealers and aftermarket providers.

Andrew Binning, Director of the Africa Automotive Show, describes the event as the ultimate platform for industry stakeholders. “Our vision is to unite players from every corner of Africa and beyond,” he says. “This is where the future of Africa’s automotive industry will be shaped.”

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The Africa Automotive Show will feature a diverse range of exhibitors, including original equipment manufacturers (OEMs), national assemblers and value chain partners. The accompanying Automotive Forum will bring together thought leaders, global partners, and heads of state to discuss the challenges and opportunities facing the industry.

By fostering collaboration, innovation, and investment, the show has the potential to transform the continent’s automotive landscape, creating jobs, boosting economies, and improving mobility for millions of people.

In the words of Victoria Backhaus-Jerling: “This is more than an event; it’s a catalyst for change. Together, we can build an automotive industry that reflects Africa’s resilience, creativity, and entrepreneurial spirit.”

This article first appeared on CHANGECARS

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Revealed: The True Numbers Behind South Africa's Car Industry in 2025

South Africa's roads now have about 12-million vehicles. This remarkable figure highlights the country's vehicle growth from 10.3 million registered vehicles in 2020.

The automotive sector reveals some intriguing patterns. Only 2,4-million vehicles have financing, while 3-million carry insurance. The industry generates 24-million sales leads yearly but converts these into just 580 000 vehicle sales. New vehicles account for 180 000 sales and used vehicles make up 400 000 of the total.

January 2025 brought encouraging news with vehicle sales hitting 46 400 units - a 10,4% jump from December 2024. This analysis will dive into these numbers deeply. We'll look at market trends and fleet management challenges to give you a detailed picture of South Africa's evolving automotive sector.

South Africa's automotive sector continues to thrive in early 2025 as growth spreads through many segments.

Total Vehicle Population Statistics 2025

The automotive industry plays a vital role in South Africa's economy and factors in 4.9% of the GDP (2,9% manufacturing and ,02% retail). South Africa ranks as the 22nd largest vehicle producer worldwide with a 0,65% share of global vehicle production. The country's automotive manufacturing makes up 21,7% of domestic manufacturing output.

New Vehicle Sales Growth Trends

January 2025 started strong as the total domestic new vehicle sales reached 46 398 units. This represents a rise of 4 375 units or 10,4% compared to January 2024. The passenger car segment performed well with 34 530 units, an 18,3% jump from the previous year. On top of that, car rental sales made up 19.,% of new passenger vehicle sales.

AI generated image

Regional Market Distribution

The market reveals interesting regional patterns. SADC countries lead South Africa's export market. Namibia, Botswana, Zimbabwe and Zambia have become the main export destinations – Kenya and Ghana now just need more South African vehicles.

The domestic market shows new trends in import sources. India's share of vehicle imports grew from 11% in 2012 to 28% in 2022 . Chinese manufacturers have gained ground too, and their market share expanded from 1% to 11% between 2010 and 2022. They achieved an annual growth rate of 7.2%.

Credit Application Success Rates

The credit market of 2025 shows mixed signals. Vehicle loan originations grew 1,1% in Q3 2024, and average new account amounts increased by 2,4%. The total number of active Vehicle Asset Finance (VAF) accounts stands steady at 2,1-million. The market remains strong as 80% of new cars and over 50% of used cars secure financing.

Alternative Financing Options

The changing market has led to new financing solutions for #carbuyers:

- South African roads now have 25 000 vehicles under long-term rentals and subscriptions
- Lease agreements come with flexible terms and optional end-of-term purchase rights
- Rent-to-buy models have become popular alternatives to traditional financing

The financing world shows a clear generational change. Gen Z's share of new vehicle loans has grown from 13,7% to 16,6%. Millennials lead the pack with 40% of new vehicle purchase. Q2 2024 saw the average loan value reach R400 000, showing how financial pressures continue to shape #carlifestyle choices.

Fleet Management Transformation #fleetmanagement

South African fleet managers are moving faster toward digital transformation, and 91% plan to increase their investment in digital fleet technologies over the next five years.

The fleet management sector continues to show resilient growth, and active systems should reach 3,8-million units by 2028. Five domestic players control 70% of the market share. January 2025's commercial vehicle sales demonstrate this growth, with medium trucks showing an 11.6% increase.

Digital Fleet Solutions Impact

AI leads the state-of-the-art fleet solutions, with 23% of fleet managers already using AI solutions. These managers expect AI adoption to reach 58% within the next five years. AI technology shows its effects in several areas:

- 62% expect AI to optimize route planning
- 56% anticipate improved driver safety
- 55% look forward to better predictive maintenance

Operational Cost Trends

Total Cost of Ownership (TCO) remains crucial in fleet management decisions. Fleet expenses split between fixed and variable costs, with maintenance and fuel making up the largest variable expenses. Fleet managers now emphasize proactive maintenance strategies to reduce unplanned downtime and extend vehicle lifespans.

Fleet management software makes real-time expense tracking and TCO calculation possible. IoT sensors monitor vital components and detect potential problems early. This comprehensive strategy helps avoid expensive repairs while keeping optimal fleet availability.

South Africa's e-commerce market has reached R71-billion in 2023, which has led to a surge in the logistics sector's vehicle needs. This represents a 29% growth from the previous year.

The commercial vehicles market continues to expand strongly. Fastway Couriers has grown their delivery fleet by 132% in Gauteng alone in the last decade. The manufacturing segment leads as the fastest-growing sector in the South African freight and logistics market and projects a growth rate of 7% during 2024-2029.

These key factors shape delivery vehicle sales:

- Increased urbanization and e-commerce volumes
- Implementation of route optimization technologies
- Growing need for electric and hybrid commercial vehicles
- Rising need for urban delivery solutions

E-commerce Impact on Fleet Requirements

Online retail sector's expansion reshapes fleet requirements completely . Road transport now handles 85% of all exports to ports or airports. The wholesale and retail trade segment leads the freight and logistics market with a 39% market share in 2024.

E-commerce growth creates unique challenges for delivery fleets. Fuel costs and security expenses affect operational efficiency substantially. Last-mile delivery costs range between R90 to R900 per package. This has led companies to explore innovative solutions like aggregator platforms and crowdsourced delivery services.

Rhenus South Africa shows how the logistics industry adapts through expansion. They opened a 3 000 square meter warehouse near Pretoria and a 2 000 square meter facility in East London. M24 Logistics revealed a 30 000 square meter warehouse in Montague Gardens. These developments show how the sector responds to growing e-commerce needs.

South Africa's automotive sector continues to evolve rapidly. Vehicle financing companies now offer groundbreaking options such as long-term rentals and subscription models that match what customers just need. Fleet managers lead the way in digital advancement, and 91% of them plan to invest more in technology over the next five years.

E-commerce growth propels the logistics sector forward, especially when you have rising delivery vehicle demands. The R71-billion e-commerce market value and expanding warehouses in major cities reflect these economic changes.

Regional trends paint a clear picture. SADC countries continue as key export partners while India and China increase their vehicle imports to the domestic market. These developments create a more diverse and competitive automotive landscape.

The country ranks as the world's 22nd largest vehicle producer and contributes 4,9% to the GDP. This shows the automotive sector's crucial role in the national economy. The industry's flexibility and expansion point to a bright future through 2025 and beyond.

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Meet South Africa’s Youngest Long-Haul Fleet Owner – And She’s Driving Change

Durban, South Africa – At just 21 years old, Kiara Baijnath has already achieved what many in the trucking industry spend decades working towards. She’s the proud owner of five brand-new Volvo FH extra heavy trucks, each decked out in bold pink branding and matching double-link trailers. These eye-catching vehicles mark the launch of HerWay Logistics, Baijnath’s new long-haul transport company set to shake up the male-dominated industry.

Her passion for trucking was sparked at an early age, riding alongside her grandfather in his old truck as he delivered crops to the local farmer’s market. “Even back then, I told him that one day I wanted to drive my own truck,” she recalls.

Kiara Baijnath (centre) takes ownership of five brand-new FH extra heavy trucks, presented by Herman Steyn, Volvo Trucks Sales Executive (left) and Anders Friberg, Director of New Truck Sales at Volvo Trucks South Africa (right). 

That dream never faded. After finishing school, Baijnath began crafting a business plan focused on establishing a female-led haulage operation that would train and employ women drivers. With the backing of her supportive parents—who helped her with initial funding—she approached Volvo Trucks in Durban, expecting a tough sell.

“I was bracing myself for rejection, but to my surprise, the team was just as excited as I was,” she says. “They immediately started brainstorming and setting up timelines, which only fuelled my own enthusiasm.”

Her bold vision soon grew bigger, with a fleet of high-tech trucks that could compete for major contracts from day one. HerWay Logistics’ vehicles come equipped with Volvo Connect, a fleet management system that allows her to monitor everything from mechanical performance to driver behaviour remotely.

Herman Steyn, Sales Executive at Volvo Trucks Durban, explains, “Volvo Connect helps operators run a more efficient and profitable transport business. It’s a perfect match for forward-thinking entrepreneurs like Kiara.”

Anders Friberg, Volvo Trucks South Africa’s Director of New Truck Sales, agrees. “The new generation of fleet owners understand the power of technology in trucking. Kiara, for example, has already calculated that driving just a little more efficiently—saving 400 metres per litre—could cut fuel costs by R100,000 per truck per year. That’s the kind of smart thinking we love to see.”

HerWay Logistics officially hits the road on 1st February, starting with long-haul deliveries between Durban and Johannesburg, one of South Africa’s busiest routes. But Baijnath and her team have even bigger plans, aiming to expand into neighbouring countries with the support of Volvo Trucks’ service network across sub-Saharan Africa.

“We’ve structured our business and service agreements to allow cross-border operations,” she explains. “Beyond that, we’ll be working on our driver-training programme. Women’s empowerment and road safety are non-negotiable for us.”

And those bright pink trucks? They won’t just stand out on the road; they’ll serve as a statement. “They’ll be hard to miss, and that’s the point,” Baijnath says. “We want people to know we’re here, we’re serious, and we’re doing things differently.”

HerWay Logistics’ headquarters is based in Prospecton, Durban, with plans to establish depots across South Africa as the business grows. With its fresh approach and strong backing, it’s clear that this young entrepreneur is set to drive change in more ways than one.

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