Speed up AfCFTA and industrialise

Zimbabwe’s Finance, Economic Development, and Investment Promotion Minister, Professor Mthuli Ncube, has underscored the urgency of advancing industrialisation and expanding Special Economic Zones (SEZs) across Africa to accelerate the implementation of the African Continental Free Trade Area (AfCFTA). Speaking at the 57th Session of the Conference of African Ministers of Finance, Planning, and Economic Development in Addis Ababa, Ncube positioned these measures as vital for unlocking the bloc’s economic potential.

Zimbabwe, which ratified the AfCFTA agreement in May 2019, is among the early adopters of the initiative designed to create a unified continental market. The pact, established in 2018, seeks to dismantle trade barriers, harmonise regulations and boost intra-African commerce, which currently lags behind other regions. With a population of 1,4-billion and a collective GDP exceeding $3,4-trillion, the AfCFTA could elevate intra-African trade by 45% by 2045 — if infrastructural and regulatory challenges are resolved.

During his address, Ncube outlined key priorities drawn from discussions with the Committee of Experts. Strengthening regional value chains in agriculture, manufacturing, and services was highlighted as a priority to reduce reliance on raw commodity exports.

“Enhancing trade infrastructure and addressing non-tariff barriers will be central to maximising value addition,” he said, pointing to the need for harmonised regulations and improved access to finance.

The outgoing conference chair echoed these sentiments, advocating for innovative financing mechanisms such as blended finance and thematic bonds to support businesses. Digital transformation was also flagged as a catalyst for growth. Ncube stressed that integrating e-commerce platforms, digital trade tools, and fintech solution into the AfCFTA framework could lower transaction costs and broaden market access.

Zimbabwe’s Automotive Sector Opportunity
Zimbabwe’s recent approval of provisional tariff concessions by the AfCFTA Secretariat positions it to begin preferential trading under the agreement. This milestone aligns with the nation’s ambitions to leverage its mineral wealth, particularly in lithium and steel, to participate in regional value chains.

A recent study by Afreximbank, the AfCFTA Secretariat, and the African Association of Automotive Manufacturers identified several Zimbabwean firms — including Chloride Zimbabwe and United Springs — as potential contributors to Africa’s automotive sector.

With global demand for electric vehicles rising, Zimbabwe’s lithium reserves, critical for battery production, could see it emerge as a hub for component manufacturing. Ncube noted that such opportunities align with broader efforts to diversify economies and reduce dependency on volatile commodity markets.

As South Africa assumes the G20 presidency, Ncube urged African leaders to seize the platform to advocate for reforms in global financial architecture. He called for inclusive frameworks to improve access to climate finance and support sustainable development goals.

“Green industrialisation must be prioritised,” he added, emphasising the potential for renewable energy investments and climate-resilient trade policies to position Africa as a leader in sustainable growth.

While progress on the AfCFTA advances, concerns linger over external trade pressures. In South Africa, automotive sector stakeholders convened at the National Union of Metalworkers’ Bargaining Conference to discuss the potential fallout from losing access to the US African Growth and Opportunity Act (AGOA). Toyota CEO Andrew Kirby warned that exclusion from AGOA could cost the company 7% of its manufacturing output, underscoring the fragility of export-dependent industries.

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Meanwhile, Russian automaker AvtoVAZ announced plans to expand into Nigeria, targeting West Africa’s largest economy with a spare parts hub in Lagos by 2025. The firm, known for its Lada vehicles, is also exploring partnerships to establish a compressed natural gas conversion plant, aligning with Nigeria’s push for alternative energy solutions. With annual vehicle demand in Nigeria estimated at 720 000 units — far outstripping local production of 14 000 — the move signals growing international interest in Africa’s underdeveloped automotive markets.

As the ministerial conference closed, Ncube urged delegates to translate dialogue into tangible policies. “Macro-economic stability, debt management, and domestic resource mobilisation are non-negotiable for building investor confidence,” he asserted, stressing the need for coordinated national and regional strategies.

The outgoing chair reinforced this call, noting, “This conference must drive concrete commitments—not just aspirations—to realise Africa’s economic transformation.” With Zimbabwe poised to commence AfCFTA trading and regional partnerships gaining momentum, the bloc’s ability to address structural hurdles will determine whether its ambitious vision translates into equitable prosperity.

As global automakers and African industries navigate shifting trade dynamics, the continent’s path to industrialisation remains a complex yet pivotal endeavour—one requiring collaboration, innovation, and an unwavering focus on sustainable growth.

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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.”

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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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Auto industry needs to gear up says Toyota boss

To fully cement the viability and sustainability of the South African auto industry new vehicle sales volumes need to exceed 600 000 units a year according to Andrew Kirby, President and CEO of Toyota South Africa Motors (TSAM) who made the statement at his annual State of the Motor Industry address recently – at which event Toyota also revealed six new models for launch in the first quarter.

Kirby’s, keynote address titled “The Year That Was”, offered a deep dive into the challenges and opportunities facing South Africa’s motor industry and emphasised the urgent need to boost vehicle sales to attract increased foreign investment. He also stressed the critical role of government policies noting, while recent incentives for battery electric vehicle (BEV) production were a step forward, they remain insufficient to secure the industry’s future.

Andrew Kirby

“South Africa’s automotive sector is grappling with de-industrialisation and a decline in local content, which has dropped below 40% for domestically produced vehicles,” he said. However, he maintained cautious optimism, projecting a 3,7% growth in sales for 2025, reaching 535 000 units, attributing this to potential interest rate cuts and stabilising fuel prices.

Adding to the discussion, Mikel Mabasa, CEO of NAAMSA, highlighted South Africa’s political stability as a rare advantage in the region, expressing hope for what he termed a “year of abundance.”

Emerging Automotive Trends

Kirby identified five major trends reshaping the industry:

- Shifting Consumer Preferences: South Africans are increasingly opting for smaller, more affordable vehicles, with a 2,27% drop in the average passenger car price between 2023 and 2024.
- SUV Dominance: SUVs now account for over half of passenger car sales, with the number of available models rising from 114 in 2018 to 166 in 2024.
- Demand for In-Car Technology: Features such as customisation, connectivity and voice control are becoming standard, even in entry-level models.
- Rise of Indian and Chinese Production: Chinese and Indian vehicle imports have surged, making up 37% of local sales in 2023, compared to just 18% in 2018. Meanwhile, locally produced vehicle sales have dropped from 46% to 43%.
- The NEV Transition: The adoption of hybrid and electric vehicles is gaining traction, however, widespread adoption of BEVs in South Africa is unlikely before 2029 without stronger government incentives.

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“The industry’s growth will depend on collaboration, adaptability and a supportive policy framework – paving the way for a brighter future in the years ahead,” he says.

Steel Woes

South Africa's automotive industry has emphasised the urgent need for a robust and sustainable local steel supply chain, citing its critical role in vehicle production, particularly in safety-critical components. Kirby expressed concern about challenges facing the steel sector, including policy issues, logistical inefficiencies, and electricity costs, all of which are contributing to rising uncertainty.

"We cannot rely on scrap metal with impurities, which some local suppliers currently provide. This makes the stability of local steel production absolutely vital for us," he says. "The recent announcement regarding the risks to Newcastle’s operations is very serious for us. It’s encouraging that open discussions are underway, and there may be positive outcomes, but the underlying challenges are clear."

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Three key issues were identified as critical to resolving the steel industry’s struggles:

- Policy Concerns: The decentralisation of scrap metal exports has created an imbalance in the local market, with industries indirectly subsidising this system.
- Transport Costs: High logistical expenses are significantly driving up the cost of steel production.
- Electricity Prices: The sector continues to grapple with exorbitant energy costs, which undermine competitiveness.

Steel constitutes approximately 25%–30% of the local content in South African-manufactured vehicles, a figure that remains constant even with the transition to battery electric vehicles (BEVs). This highlights the importance of ensuring the sustainability of the steel industry for the future of the automotive sector.

"While we acknowledge the complexity of these challenges, we believe structural issues in the steel sector must be addressed by experts in the field. As an automotive industry, we are committed to supporting and collaborating where we can guide these efforts in the right direction," added Kirby.

A meeting with the CEO of ArcelorMittal South Africa (AMSA) further underscored the importance of increasing local demand for steel. AMSA urged original equipment manufacturers (OEMs) to source more steel domestically to help stabilise and grow the sector. Out of the seven OEMs operating in South Africa, four currently source most of their steel locally, with ongoing discussions aimed at encouraging further uptake.

"We need to create an environment where local steel production is competitive and sustainable. Investment in infrastructure and achieving scale is critical, not just for the steel sector but for the broader automotive industry," he says.

Looking back, Kirby said 2024 was anticipated to follow a predictable trajectory, with a softer first half and stronger second half. However, this pattern failed to materialise. While the resolution of the energy crisis – with 300 days of uninterrupted electricity supply provided much-needed economic relief, ongoing challenges in transport and logistics hampered recovery efforts.

“The national elections also played a pivotal role. Although they concluded smoothly, pre-election tensions impacted consumer and business confidence, delaying economic recovery. By year-end, vehicle sales reached 515 000 units, falling short of the forecasted 540 000. The taxi sector’s dramatic 60% contraction, driven by fraud and financing issues, exacerbated the decline. Adjusting for this anomaly, the market would have only dropped by 1,3%.

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“The South African automotive industry remains below pre-pandemic levels, with sales still trailing 2019 figures. For sustainable growth, experts suggest the market must exceed 600 000 annual units. Falling short of this benchmark makes it difficult for the sector to achieve scale and long-term stability,” he says.

Consumer Trends: Affordability and Preference Shifts

Affordability emerged as a dominant theme in 2024. The average selling price of passenger vehicles declined, reflecting a clear shift towards more budget-friendly options, particularly in the B-segment. This trend, driven by rising economic pressures and tighter credit conditions, was also evident in increased used car sales.

SUVs and crossovers continued their meteoric rise in popularity, now accounting for 53% of passenger vehicle sales. The introduction of new models has further bolstered this segment, particularly in premium categories. Consumer preferences have also evolved, with in-car experiences such as advanced infotainment systems, connectivity, and luxury features becoming key purchase drivers, even for mid-range vehicles.

“The automotive sector faces significant structural hurdles. Despite the existence of a national automotive master plan since 2018, little progress has been made in optimising the local market. The failure to implement key elements of the plan has stifled growth, while efforts to integrate regional markets through the African Continental Free Trade Agreement remain incomplete.

“Additionally, the lack of incentives to promote new energy vehicles (NEVs) is hindering South Africa’s ability to attract investment in this area. While a new tax mechanism offers a 35% incentive for capital investment in NEVs, the local market for these vehicles remains negligible, creating a barrier to growth in domestic production and exports.”

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Globally, Chinese and Indian vehicle manufacturers are asserting dominance, with China now accounting for 29% of global vehicle production. This trend is reshaping competition in South Africa, as both nations expand their influence in emerging markets.

At the same time, global conflicts, from the Russia-Ukraine war to Middle East tensions, have added to supply chain disruptions and market volatility. Climate-related challenges have also begun to impact South Africa, further complicating the operating environment.

“To thrive, the South African automotive industry must overcome structural inefficiencies and prioritise market integration and innovation. Affordability will remain a key factor influencing consumer behaviour, alongside a growing preference for SUVs and advanced in-car experiences.

“The sector’s future also hinges on its ability to embrace new energy vehicles, align with global trends, and secure regional trade agreements. With these measures in place, South Africa could unlock the growth potential necessary to surpass the critical 600 000-unit threshold and secure long-term sustainability.”

Vehicle Reveals

The event wasn’t just about industry insights. TSAM’s Senior Vice President for Sales and Marketing, Leon Theron, unveiled sic new models including:

- The updated Corolla Cross, featuring a refreshed design and enhanced safety features.
- The powerful Fortuner GR-S, now boasting 165kW and 550Nm of torque.
- The refined GR Yaris Upgrade, with an impressive 210kW output and a new eight-speed automatic option.
- The distinctive Hilux Legend 55, showcasing wide-body styling and performance upgrades.
- The enhanced Lexus LX and its newly introduced hybrid variant, the 700h.
- The all-new Lexus GX, a rugged yet luxurious off-roader debuting with an adventurous Overtrail variant.

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Africa Automotive - 2024 Growth of Africa's Automotive Sector

In 2024, Africa's automotive sector witnessed notable progress, primarily spurred by increased local production and advantageous trade policies. The continent is attracting a variety of automakers, both international and local, who recognise the potential within the region. This interest has led to a rise in automotive manufacturing plants across multiple African countries, reflecting a deliberate move towards regional production. The industry is also seeing a diversification of vehicle models being produced, catering to both local market demands and export opportunities.

Efforts to bolster the automotive industry are evident in the investments being made in infrastructure and technology. Countries such as South Africa, Nigeria, and Morocco are key players, offering a blend of skilled labour and favourable business environments. This development is creating job opportunities and fostering skills transfer, contributing to broader economic growth.

Another critical factor in this growth is the increasing collaboration between governments and industry stakeholders to create supportive policies and initiatives. These include tax incentives for manufacturers, streamlined customs procedures, and efforts to harmonise vehicle standards across the continent. Such measures are aimed at making Africa an attractive destination for automotive investment.

Furthermore, the push towards sustainability is also shaping the sector, with an increased focus on electric vehicles and green manufacturing practices. This trend is aligning with global shifts towards environmentally friendly motoring solutions, positioning Africa as a forward-thinking player in the global automotive arena.

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Impact of the African Free Trade Agreement

The African Continental Free Trade Agreement (AfCFTA) has the potential to transform the automotive industry across the continent. By connecting more than1,3-billion people into a single market, the AfCFTA provides significant opportunities for automakers to expand their reach and streamline operations. Additionally, a World Economic Forum report anticipates that global business under this agreement could boost the African automotive industry by $12-billion by 2027. These developments promise a more integrated market, reducing tariffs and improving trade efficiencies among African nations.

The removal of trade barriers under the AfCFTA is expected to ease the movement of automotive components and finished vehicles across borders. This will likely result in lower costs for manufacturers and consumers alike, fostering a more competitive market environment. Additionally, the agreement encourages regional value chains, allowing different African countries to specialise in various stages of vehicle production. This approach can lead to increased efficiency and higher-quality outputs.

Moreover, the harmonisation of regulations and standards across member states will simplify compliance for automakers, making it easier for them to operate in multiple countries. This is particularly beneficial for small and medium-sized enterprises looking to enter the automotive market. The AfCFTA's emphasis on economic integration and industrialisation aligns with the broader goal of sustainable development, positioning Africa as an increasingly attractive destination for automotive investment.

Indicators of Growth in the Automotive Industry

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The positive trajectory of Africa's automotive sector can be seen through various indicators. Afreximbank, in collaboration with the African Association of Automotive Manufacturers, is actively supporting industry growth. By harmonising automotive standards, developing training programmes, and providing financing, they aim to facilitate industry growth, with Afreximbank committing $1 billion to these efforts.

Vehicle production and sales figures are on the rise, reflecting increased consumer demand and manufacturing capacity. The establishment of new manufacturing plants in various African nations demonstrates robust confidence from both international and local investors. These investments are not only boosting production but also generating employment opportunities and enhancing skill development.

Furthermore, the automotive sector is benefiting from a rise in partnerships and joint ventures aimed at leveraging local expertise and global technology. This collaborative approach is leading to improved production processes and the introduction of innovative vehicle models tailored to the African market.

Another crucial indicator is the development of supply chain networks that are becoming more sophisticated, ensuring the efficient movement of automotive components and finished vehicles. These advancements are essential for meeting the growing demand for cars and motoring solutions across the continent.

In summary, these indicators highlight the increasing dynamism within Africa's automotive industry, showcasing a sector poised for sustained growth and development.

Industry Challenges

The African automotive industry, despite its promising growth, faces a range of challenges that could impede its progress. One of the most pressing issues is the inadequacy of infrastructure. In many regions, road networks and port facilities are not sufficiently developed to support efficient supply chain operations. This situation creates bottlenecks that can delay the movement of automotive components and finished vehicles, thereby increasing costs and affecting competitiveness.

Economic instability in some African nations also poses significant risks to the industry's growth. Fluctuations in currency values and inflation rates can create an unpredictable business environment, making it difficult for automakers to plan long-term investments. Additionally, political instability in certain areas can deter potential investors and disrupt existing operations.

Another challenge lies in the regulatory landscape, which can vary significantly from one country to another. This lack of uniformity complicates compliance for automakers, particularly those looking to operate across multiple African nations. While efforts are being made to harmonise vehicle standards under initiatives like the AfCFTA, achieving comprehensive regulatory alignment remains a work in progress.

Furthermore, access to financing is a critical hurdle for many local enterprises looking to enter the automotive sector. High interest rates and limited availability of credit can stifle innovation and restrict the growth of small and medium-sized enterprises that are essential for a vibrant automotive ecosystem.

Labour issues, such as the availability of skilled workers, also present obstacles. While some countries are investing in training programmes, the overall skill level of the workforce needs to be elevated to meet the demands of advanced automotive manufacturing.

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Technological Progress and Innovation

Technological advancements are playing a pivotal role in Africa's automotive evolution. There is a noticeable rise in electric vehicle production and adoption, driven by the continent's commitment to sustainable development. Pilot projects for sustainable vehicles are already underway in Rwanda, Egypt, and South Africa, with e-mobility startups emerging across the continent. The introduction of smart technologies in vehicles, such as advanced driver-assistance systems and connectivity features, highlights Africa's readiness to embrace innovation and align with global automotive trends.

Market Potential and Consumer Preferences

Africa's automotive market is burgeoning, spurred by emerging economies and an expanding middle class. These factors are significantly reshaping consumer preferences across the continent. There's a noticeable shift towards vehicles that prioritise sustainability, reflecting broader global trends towards environmentally conscious motoring. This change in preference offers automakers a valuable opportunity to introduce eco-friendly models that align with the increasing environmental awareness among African consumers.

In addition to the demand for sustainable vehicles, there's a growing appetite for advanced features and technologies in cars. African consumers are becoming more discerning, seeking vehicles equipped with the latest in safety, connectivity, and comfort. This trend is pushing automakers to innovate and adapt their offerings to meet these evolving expectations.

Moreover, the rise in disposable income among the middle class is leading to a higher demand for a diverse range of vehicles, from economical models to luxury cars. This diversity in consumer demand is encouraging manufacturers to broaden their portfolios to cater to different segments of the market. The interest in luxury and premium vehicles, in particular, is indicative of a market that is maturing and becoming more sophisticated.

The burgeoning interest in electric vehicles is another critical aspect of the changing market dynamics. Governments and private entities alike are increasingly promoting electric mobility as a sustainable alternative to traditional combustion engines. This is not only in line with global sustainability goals but also addresses local issues such as urban air pollution and fuel dependency.

Overall, the evolving market potential and consumer preferences in Africa present a promising landscape for the automotive industry. By responding to these trends, automakers can tap into a market that is both growing and increasingly sophisticated in its demands.

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Future Outlook and Opportunities

Looking ahead, Africa's automotive sector is poised for further advancement, driven by a combination of strategic investments, policy reforms, and technological innovation. The region's commitment to enhancing infrastructure and reducing trade barriers sets the stage for a more integrated and efficient automotive industry. Continued collaboration between governments and industry stakeholders will be crucial in creating an environment conducive to growth and innovation.

One of the most promising opportunities lies in the development of electric vehicles, with several countries already pioneering initiatives in this space. The shift towards sustainable motoring not only aligns with global trends but also addresses local challenges such as air quality and fuel dependency. This focus on green technology could position Africa as a leader in the adoption of environmentally friendly automotive solutions.

Additionally, the rising middle class and increasing urbanisation are expected to drive demand for a diverse range of vehicles, from budget-friendly models to premium cars. This expanding market offers a lucrative opportunity for automakers willing to tailor their offerings to meet the specific needs and preferences of African consumers.

Partnerships and joint ventures between local firms and global automakers are likely to enhance the transfer of knowledge and technology, fostering innovation and boosting production capabilities. As these collaborations flourish, they will contribute to the overall competitiveness of Africa's automotive sector on the global stage.

In summary, the future of Africa's automotive industry holds significant promise, with numerous opportunities for growth and development as the continent continues to embrace modernisation and innovation.

Originally published on CHANGECARS

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Africa Automotive: Doing it for ourselves

CAIRO: The African automotive sector is surging ahead with new projects and new plans for both assembly and the manufacture of parts to feed what is hoped will become a voracious beast – provided even more cooperation and support can be gained from governments across the continent.

Steady progress towards realising an African Free Trade Agreement (AfCFTA) is being made with countries such as Nigeria, Ghana, Kenya, Morocco and Egypt fully committed to making it work while, simultaneously, energising their own auto programmes.

The President of the African Association of Automotive Manufacturers (AAAM) and Managing Director of Volkswagen South Africa, Martina Biene, said at the opening of the Africa Automotive Show in Cairo: “There are multiple opportunities for everyone in Africa to be a part of the combined value chain.

Martina Biene

“A comprehensive automotive policy creates the framework for trade and will build new car demand but remains dependent on economies of scale and any policy framework must serve to increase that demand.”

Presenting the results of a ‘roadmap’ study done in Egypt on powertrain evolution, Dylan Jessup, Automotive Sector Incentives Manager at EY South Africa, said battery electric vehicles (BEV) was “not the panacea” and that each segment in the possible alternative power source options needed to be evaluated separately and specifically for each country to “determine economic, environmental and social benefits”.

“South Africa’s auto industry is very built on a trade based policy but we need to look at regional integration and establish a healthy supply chain (that could involve beneficiating the raw materials mined in various countries rather than sending them away only to be re-imported).

“Each country needs to look at it strengths and work on those and the actual implementation of the AfCFTA will then make trade easier.”

Of the issues demanding urgent attention is the one on fuel quality with much of Africa still running Euro II specification whereas Europe is moving to Euro VII.

Rynhardt Rall, Regional Product Manager for Nissan pointed out the automaker had two plants in Africa – South Africa and Egypt – saying: “It is very expensive to run internal combustion engine (ICE) vehicles on Euro VII fuel but Africa does not need to go head-to-head or play catchup.

“Africa is rich in natural resources so it makes good sense to utilise that,” he says.

Biene concurred and added the low level fuel meant Volkswagen could not introduce some of its latest generation hybrid vehicles that simply could not run on Euro II fuel.

“The South African government has to become more pro-active on this issue.”

The Intra Africa Trade Fair (IATF) is a massive multi-cultural event covering many aspects of trade and industry and, while a large and very significant element, the Auto Show is just a part of an entity where deals worth billions of Dollars are being done by Africans for Africans.

In a keynote speech read on his behalf, Morocco’s King Mohammed VI said: “Africa needs now more than ever bold, innovative initiatives to encourage private entrepreneurship and unleash the full potential of our continent.

“Over the past two decades, Morocco has made infrastructure development a priority in all economic sectors and is pushing toward its goal of deriving more than 52% of its national electricity mix from renewable energy by 2030.”

The King also stressed African countries should enhance “coordination and cooperation mechanisms to drive regional integration”,  citing the Morocco-Nigeria Gas Pipeline Project he says will “enable all countries along the pipeline route to have access to reliable energy supplies and to be more resilient to exogenous energy price shocks”.

There is a slender thread that links all of the different activities and interests at IATF and literary superstar Chimamanda Ngozi Adichie and Narrative Landscape Press announced the launch of The CANEX Prize for Publishing in Africa.

Why does this matter?

“Stories can give us the confidence to own our aspirations,” says the writer. “CANEX is about hope – the hope of many more African stories. We need more African countries. Stories matter. Stories can take away dignity, but they can also restore dignity. Stories shape politics and perceptions.”

And that is the thread – reshaping politics and perception to benefit all Africans – and in his keynote address, Dr Akinwumi A Adesina, President of the African Development Bank Group, highlighted Africa’s prospects as a prime investment destination.

“The continent is not as risky as perceived, is growing and showing resilience despite global challenges. As investors, put your monies where the future is — the future is Africa.”

Part of the South Africa Pavilion at IATF

The President of Comoros, Azali Assoumani, pointed out manufactured African exports account for just 1% of world exports.

“We export them to developed countries and these countries re-export them to us processed and sell them back to us at ten times the price. Despite the obstacles, there are enormous opportunities for the development of value chains in Africa.”

Alec Erwin, former Minister of Trade and Industry now a driving force in the efforts of AAAM remarked the early 90’s in South Africa brought new challenges and the realisation the economy had to grow.

“Simply put, South Africa’s auto industry could not survive the way it was and that led to it changing to a volume production scenario which it managed very successfully. For Africa a similar system is needed that will let us all grow and, while there may be some policy differences, it will all be based on trade – and that is why AfCFTA is so vitally important.”

In a video address Anand Pather, Vice President Customer Services at Toyota South Africa, said: “Africa needs a comprehensive safety policy across the auto industry, something like the South African Bureau of Standards that will oversee all of the parts supply chain to ensure equal and high standards are maintained.”

If some of what AAAM and various African governments are talking about seems a bit ‘pie-in-the-sky’, think on this – the Start/Stop button so common in cars today started life as an Egyptian patent.

Colin Windell – proudly CHANGECARS

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Africa Automotive - All go for Cairo

As Egypt and, more specifically, Cairo gears up to host the Africa Automotive Show as part of the week-long Intra Africa Trade Fair, the country is also celebrating being ranked 28th in a global e-mobility index regarding the preparedness of the country is to transition to electric vehicles (EVs), and was categorized as a starter market after scoring 32 points out of 100.

Out of 35 countries studied in the new Global Electric Mobility Readiness Index (GEMRIX) 2023 by US consulting firm Arthur D Little, 13 countries from the MENA region were included, with Egypt ranked 10th in the Middle East.

“Despite the relatively low presence of EVs, the Egyptian government has been expressing strong ambitions to push for the promotion of EVs. A key reason for this ambition is the government’s commitment to achieving its sustainable development goals, which are elaborated in Egypt Vision 2030,” said the report – and this as South Africa still awaits clarity of the ANV Government as what it plans for the future.

According to the report, a starter market is one with a strong potential for new start-up-style entrants and early infrastructure development in a “blue ocean environment.”

It also noted that many of these markets would have some progress in establishing local EV manufacturers and an EV ecosystem.

In much the same time frame the Africa Association of Automotive Manufacturers (AAAM) announced Volkswagen’s Martina Biene is taking over the role of President from newly-named head of Stellantis South Africa, Mike Whitfield.

Martina Biene

Her goal – to play a “key role through AAAM to grow the automotive manufacturing industry from the 1,1-million vehicles a year today to 3,5-million or even 5-million by the year 2035”.

The AAAM was founded in November 2015 and is the only African entity with a focus on both widening and deepening the automotive industry across the continent by working with governments to develop investor-friendly policies as well as seeking to align a global stakeholder network, to free up Africa’s economic potential, via the automotive sector.

As the large South African of delegates and exhibitors heads for Cairo, it is with the hope the electric vehicle strategy for the country will have been outlined and, as Billy Tom, naamsa President and CEO of Isuzu Motors South Africa said recently: “As an industry reliant on exports to markets such as Europe, which has shifted away from ICE vehicles, we have to be able to adapt and meet these stringent demands to continue delivering vehicles there and to other similar markets.”

Colin Windell – proudly CHANGECARS

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Africa Automotive - The clock is ticking

As the clock counts down to the Intra Africa Trade Fair (IATF) taking place in Cairo, Egypt in November, the pace of African automotive development is picking up pace. . .rapidly.  

In new recent developments, Chinese automaker BYD – which recently launched in South Africa – announced its launch plans in Morocco in an alliance with Auto Nejma, a key player in automobile distribution in Morocco.  

Still in Morocco – The Minister of Industry and Trade, Ryad Mezzour, and Frank Huber, Forvia Group’s Executive Vice-President of Seating, recently launched the construction of the group’s new production facility in Sale near Rabat.  

The new industrial plant, which will expand the Group's industrial activity in Morocco, will specialise in the cutting and production of textile and leather covers for automotiveseats, to meet the demand of numerous European automakers.  

The equipment manufacturer will invest $15,4-million in this industrial initiative, which will generate 1 400 new jobs.   

“This fourth Faurecia plant reinforces our positioning as a destination of choice for investment in the automotive sector. It is a clear sign of the confidence of renowned players in our industrial potential and assets,” Mezzour says, adding, “this project will bring an added value to the Rabat-Sale-Kenitra region, reinforcing its position as a benchmark industrial hub in the automotive industry.” 

“We've been present in Morocco for nearly fifteen years, and we're delighted to open a new chapter in this country, where we already employ nearly 4 000 people, by expanding our plant in Sale,” Hubert stated.   “Morocco has seen significant growth in the automotive sector in recent years. We are delighted to be strengthening our position in this ecosystem today, and would also like to thank the local authorities for their support from the outset of this project,” he added.  

Since 2008, Faurecia, a Forvia Group company and the world's 7th largest automotive technology company has had three production facilities in Morocco: two in Kenitra and one in Sale.  

Algerian Trade and Export Promotion Minister, Tayeb Zitouni, recently announced China has agreed to build an automobile factory in Algeria and Yazaki, a Japanese car parts supplier, has signed an agreement with the Governor of Fayoum in Egypt to allocate land for a new factory that will be constructed by the company's local subsidiary using $33,27-million in investments. 

Although South Africa remains the largest automobile manufacturing country in Africa, the gap is narrowing and particularly in the establishment of investment in the supply chain sector.  

A quick snapshot of some of the activity around Africa shows:  

Ghana: Kantanka Automobile Company: Founded by Kwadwo Safo Kantanka, this indigenous automaker has been producing vehicles since the early 1990s. Kantanka’s production facilities in Ghana assemble a range of vehicles, including sedans, SUVs, pickups, and luxury cars. The company focuses on designing and manufacturing vehicles that cater to the specific needs of the African market.

Nigeria: Innoson Vehicle Manufacturing (IVM): Innoson Vehicle Manufacturing (IVM), founded by Innocent Chukwuma, is a leading player in Nigeria’s automotive sector. IVM has established a modern production facility in the city of Nnewi, where it assembles a diverse range of vehicles, including cars, buses, and trucks.

Kenya: Mobius Motors: Mobius Motors, headquartered in Nairobi, is a notable example of Kenya’s commitment to producing vehicles that meet local transportation challenges. The company focuses on creating affordable and rugged vehicles designed for African road conditions and transportation needs. 

The African Automotive Show runs concurrently with IATF2023 from November 9 to November 15 and, based on figures from the last IATF, held in Durban, could generate more than R840-billion in trade deals.  

Besides the 1 600 exhibitors, 79 countries and 35 000 attendees that will be participating at the event, here are another nine reasons you need to register today.  

Automotive companies including commercial (bus and truck) and passenger vehicle manufacturers, assemblers, importers, component manufacturers, dealers, parts & accessories distributors, electric motorcycles and vehicles, infrastructural projects and agencies, other members of the value-chain, including mineral processing, logistic services providers and automotive development agencies will have an opportunity to showcase their products and also interact with potential buyers, suppliers and governments.

The Automotive Forum (conference), spearheaded by the African Association of Automotive Manufacturers (AAAM) addresses the most pertinent issues affecting Africa’s automotive growth. Highlights of the 3-day program include:

- Presentations from global automotive leaders, including multi-national OEMs

- Participation of several Heads of State

- An agenda that seeks to facilitate cooperation and the development of regional auto supply chains (trade between auto hubs) for auto manufacturing on the continent.

- Unprecedented networking with all of Africa’s key role-players and international partners.

A B2B and B2G platform: The platform will provide matchmaking and business exchange opportunities for vehicle manufacturers, vehicle assemblers, OEMs and component suppliers and other automotive industry service providers, leading to the conclusion of business and investment deals across various sectors.

This is supported by a dedicated African Buyers' Programme  Africa (excluding South Africa) currently accounts for only 0,5% of the global automotive market (600 000 units). Its motorisation rate is just 45 vehicles per 1 000 inhabitants - significantly below the global average of 203.   The exhibition will attract continental and global buyers and sellers, including executives and market expansion managers that will engage in business deals in, amongst others:

- Parts Manufacturing, including EV components, batteries and solar

- Raw Materials

- Parts Supply

- Parts Distribution

- Vehicle Manufacturing

- Component Manufacturers

- Vehicle Aftermarket Services

- Logistics Service Providers

- Infrastructural Projects e.g. Special Economic Zones

- Vehicle Accessories:

- Vehicle Electronics

- Vehicle Security

- Vehicle Maintenance

- Electric Vehicle Supply

- Electric Vehicle Accessories

- Vehicle Finance (Including Insurance)

  While challenges exist, the potential impact of a flourishing automotive sector is immense. The growth of the industry can drive economic development, create jobs, facilitate technology transfer and meet the unique transportation needs of African consumers.  

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Africa Automotive - Cairo is a go

The Automotive Expo and Forum is a go for 2023 at the Egypt International Convention Centre in Cairo – this follows a venue change from the original Abidjan site.

As part of the Intra Africa Trade Fair 2023, the Automotive Expo, hosted by the African Association of Automotive Manufacturers (AAAM) gains feature status this year within the fair that runs from November 9 to November 15.

Fully backed by the Department of Trade and Industry in South Africa, many local automakers and assemblers are expected to be visible in Cairo along with a strong showing from assemblers in other African countries such as Morocco.

Indeed, automotive interest and passion at all levels is becoming increasingly evident in the investment plans already in place, or being put into place, in various African countries and, perhaps, is highlighted by the news Kenya will be staging an auto show in September.

This will run from September 15 to September 17 at, the Sarit Centre Expo Hall in Nairobi and aims to attract new partners and players in the automotive and associated industries.

The Motorshow's theme this year is ‘The Connection,’ emphasising the seamless integration of automotive technology with our daily lives and the endless possibilities it brings.

The organisers expect 10 000 attendees and the title sponsor is NCBA Bank whose Group Managing Director, John Gachora, says: "As the leaders in asset financing in Kenya and East Africa, we are dedicated to creating sustainable transport options by providing affordable financing solutions."

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Colin-on-Cars - First Ranger off the line

After months of build-up news, a factory ‘unveiling’ and more than plenty hype, Ford Motor Company’s Silverton Assembly Plant in Pretoria, today became the third plant to commence production of the new Ranger for customers around the world.

The start of the production follows a major investment of US$1,05-billion (R15,8 billion) in Ford’s South African operations and supplier tooling to allow exports to more than 100 markets, including Europe.

Ford Motor Company now has three production hubs in the International Markets Group (IMG) region producing Next-Gen Ranger for global markets, including the Silverton plant in South Africa, and two plants in Thailand. The company also has CKD operations in Vietnam and Cambodia to assemble the Ranger, with plants in the US and Argentina to begin production in 2023.

Commitment

“The start of Ranger production in South Africa highlights our commitment to delivering must-have products for our customers, not just in South Africa but around the world,” says Dianne Craig, president of Ford International Markets Group (IMG).

“South Africa is an important part of our global Ranger manufacturing network, and it is fantastic to witness the investment being utilised to modernise and transform the Silverton Assembly Plant to produce vehicles of the absolute best quality for customers around the world.”

The expanded operations in South Africa contribute to job creation and economic development, with 1 200 new jobs added for a third shift to support the increased production volumes. This takes the workforce at Ford South Africa to 5 500 employees. Ford’s supplier network benefits too, with approximately 10 000 jobs added across the value chain.

Of the total investment, approximately US$686-million (R10,3 billion) has gone into the transformation and modernisation of the Silverton plant with the construction of its first on-site Stamping Plant, a new highly automated Body Shop, and the introduction of the latest vehicle assembly operations on the Trim, Chassis and Final line.

Furthermore, the only Ford-owned and operated Frame Line in the world was built in the new Tshwane Automotive Special Economic Zone (TASEZ) supplier park adjacent to the Silverton Assembly Plant. Ford’s investment in tooling at its major supplier companies totalled US$365-million (R5,5-billion).

In addition to the Silverton investment, Ford injected US$34-million (R600-million) into its Struandale Engine Plant in Gqeberha (formerly Port Elizabeth), which produces all the engines used in the new Ranger.

The investment in Struandale Engine Plant has helped Ford introduce the new 3,0-litre V6 Diesel engine program, comprising cylinder head machining and engine assembly. Upgrades for the Ranger were also implemented on the existing assembly line for the 2,0-litre Single Turbo and 2,0-litre B-Turbo diesel engines.

“We have put immense effort, resources, and the latest technologies in place to ensure the Ranger is truly world-class, and that the Silverton plant globally equals the very best,” says Andrea Cavallaro, Director Operations, Ford IMG.

“We took several strategic decisions including the decision to bring the stamping operations and the frame manufacturing in-house, to ensure complete control of the production quality. The process put in today guarantees that the components going onto the assembly line for every Next-Gen Ranger are of the highest quality.”

The Stamping Plant at the Silverton Assembly Plant is in a new 10 320 m2 facility and feeds stamped body panels directly to the adjacent and completely new 44 000 m2 Body Shop, which is highly automated with approximately 493 robots.

Technologies

“To meet our volume and quality objectives, we have the world’s only Ford-owned and operated chassis manufacturing plant at the Silverton plant that uses the most advanced technologies currently available,” Cavallaro added.  

In addition, the 100 000 m2 Frame Line in the Tshwane Automotive Special Economic Zone (TASEZ) supplier park, located next door to the Silverton Assembly Plant, ensures the seamless sequencing of parts directly to the assembly line.

First launched in 2011, the Ranger remained one of the leading contenders in the local market over the ensuing 11 years, earning a long list of accolades in the process.

“The success of the Ranger globally establishes it as one of Ford’s most important nameplates sold in every continent,” said Neale Hill, President, Ford Motor Company Africa. “The Next-Gen Ranger is sure to raise the bar yet again and with the start of production in the Silverton assembly plant, South Africa is proud to play a role in its growth.”

What now remains to be seen is if Ford South Africa will continue to build a range of the older version to service its large corporate market.

To my mind this is a no-brainer, especially considering the final few months of production of the outgoing model were done on the new Ranger line as a kind of tesdt bed production – so there is no reason why both cannot co-exist.

First Ranger off the line: https://www.youtube.com/watch?v=wD3xnh7cHsE

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