Continental Auto Industry Gathers Momentum Amidst Trade Push, SA Exports Hold Steady

Johannesburg, a historical nexus of commerce and ambition, recently hosted pivotal discussions framing Africa’s automotive future. The gathering served as a precursor to the Africa Automotive Show, integrated within the larger Intra-African Trade Fair (IATF2025), scheduled for Algiers, Algeria, between 4 and 10 September 2025. 

This event is positioned as a critical driver for continental economic integration under the African Continental Free Trade Area (AfCFTA), even as specific challenges, including the noted closure of South Africa's Goodyear tyre factory, underscore persistent hurdles. 

Representatives from the African Export-Import Bank (Afreximbank) and the South African government emphasised the urgent need to translate policy into tangible trade. Afreximbank executives highlighted a fundamental barrier: not tariffs or logistics, but a deficit in actionable market intelligence. 

Illustrative cases were stark: Tunisia, Morocco, and South Africa collectively import over $400 million in leather goods annually from outside Africa, despite significant production capacity in Ethiopia, Kenya, and Sudan. Similarly, West African nations spend upwards of $3 billion importing meat from distant markets like Argentina and Australia, overlooking potential suppliers including Mali, Namibia, Chad, Sudan, Botswana, South Africa, and Zambia. 

"This isn't about capacity," Humphrey Nwogo, Regional Director, Southern Africa for Afreximbankl stressed. "The problem is connectivity. The problem is lack of information." 

These imbalances represent missed chances for job creation, value addition, and economic diversification continent-wide. Assembly operations at the Toyota plant in Prospecton, Durban 

The IATF, now formally designated by the African Union (AU) as the AfCFTA's commercial face and integrated into its framework, is seen as the strategic tool to bridge this gap. Its relevance was affirmed at the 2024 AU Summit, where heads of state acknowledged its role in facilitating cross-border agreements. 

South African Context: 

Exports and ImperativesAgainst this backdrop, South Africa's role in the continental vehicle manufacturing landscape remains significant. According to the latest figures from naamsa | The Automotive Business Council, the country produced approximately 515 000 vehicles during 2024. Combined with substantial output from North African nations, primarily Morocco and Egypt, total continental production reached an estimated 1,2-million units. 

This starkly contrasts with minimal output from West, Central, and East Africa, highlighting significant growth potential. 

"These figures demonstrate the existing industrial base concentrated in the north and south," says Nwogo. "The potential for replication and expansion into other African regions is immense. 

Achieving a continental output target of 5-million units is a feasible ambition underpinned by the AfCFTA." 

However, South African officials acknowledged hurdles hindering deeper integration. Deputy Minister of Public Works and Infrastructure, Sihle Zikalala, pointed to logistics constraints and skills gaps impacting cost-competitiveness for South African exports elsewhere in Africa. 

He cited the example of a Tunisian colleague driving a vehicle manufactured in Thailand rather than South Africa. "That’s why we are in this room," Zikalala remarked, underscoring the need for the AfCFTA to address these frictions. 

Beyond Assembly: The Skills Imperative

The discussion extended beyond mere vehicle assembly to encompass the entire value chain and skills ecosystem. Industry experts emphasised that sustainable growth requires equipping markets with the technical and soft skills needed to service and maintain vehicles post-sale. 

The African Association of Automotive Manufacturers (AAAM) highlighted its Skills Development Working Group, focusing on building capacity from artisan levels to policy-making echelons. Initiatives include executive short courses for trade officials and practical exposure within manufacturing plants, aiming to foster informed policy development and local job creation alongside industrialisation.  

Kenya Positions for AfCFTA Gains

Echoing the continent-wide focus, Kenya used its own IATF2025 roadshow to position itself as a trade, industrial, and innovation hub. Cabinet Secretary for Investments, Trade and Industry, Hon. Lee Kinyanjui, stated, "The solutions to Africa’s problems lie with Africans. It is essential for countries within the continent to strengthen intra-African trade... 

With a well-educated population, abundant resources, and banks ready to finance investment, Africa has what it takes to elevate itself to the next level." Afreximbank's Executive Vice President, Haytham Elmaayergi, reiterated the information gap challenge at the Kenyan event, using the leather import example, and spotlighted Kenya’s digital innovation sector as having significant export potential under the AfCFTA. 

As nations prepare for Algiers 2025, the focus remains on harnessing regional value chains, accelerating industrialisation, and overcoming informational and infrastructural barriers. The Africa Automotive Show within the IATF stands as a pivotal marketplace and catalyst for converting the AfCFTA's promise into tangible commercial progress across the continent, with South Africa's established export capacity poised to play a key role amidst ongoing domestic challenges. https://bit.ly/4l644vI

Africa Automotive - How Policy and Partnership Are Igniting Africa’s Automotive Revolution

In the heart of Botswana’s Lobatse, a quiet industrial revolution is unfolding. Inside Delta Automotive Technologies’ sprawling factory, skilled hands weave intricate webs of wires and connectors — components destined for Volkswagen and Nissan vehicles across Africa.

Intricate wiring harness assembly in Lobatse, Botswana

This facility, powered by strategic financing and regional collaboration, embodies a transformative vision: Africa as a hub of automotive innovation, not just a market for second-hand imports. But to shift gears from potential to reality, the continent’s governments must accelerate policies that fuel local manufacturing, cross-border trade, and sustainable mobility.

The Road So Far

Africa’s automotive sector sits at a crossroads. In 2024, Sub-Saharan Africa (excluding South Africa) saw just 175 915 new vehicle sales, overshadowed by over a million used imports. Countries like Ghana, Nigeria, and Rwanda remain tethered to ageing fleets, often a decade old, which guzzle fuel, pollute cities and drain foreign exchange. Vehicle penetration lingers at three cars per 100 people — a stark contrast to the global average of 18. Yet, this gap signals untapped opportunity.

“We’re scratching the surface,” says Martina Biene, Chairperson of Volkswagen Group Africa. “But unlocking this potential demands policy alignment, investment in clean energy, and a continent-wide rethink of how we approach mobility.”

Policy as the Engine of Growth

Victoria Backhaus-Jerling

At a recent Volkswagen-hosted event in Kigali, Victoria Backhaus-Jerling, CEO of the African Association of Automotive Manufacturers (AAAM), outlined the non-negotiables for progress. “Political will to implement automotive policies is paramount,” she asserted. “Without legal frameworks, Original Equipment Manufacturers (OEMs) won’t invest.”

Her message resonates across boardrooms and government offices: Africa needs cohesive policies to attract giants like Toyota, Volkswagen, and Renault. South Africa, Morocco, and Tunisia have already demonstrated this. South Africa’s auto sector contributes 4,3% to GDP, supported by incentives like the Automotive Production and Development Programme.

Morocco, now Africa’s top car exporter, leveraged tax breaks and port upgrades to lure Renault and Stellantis. Algeria, too, is drafting an auto policy to position itself as a manufacturing contender.

Filter assembly at Johannesburg's Mann & Hummel facility

But fragmentation persists. Forty-one African countries lack basic automotive standards, from fuel quality to emissions. Ghana’s nascent assembly incentives — tax breaks for local plants — are hamstrung by uneven regional regulations. Backhaus-Jerling’s solution? “One Africa, one automotive standard. Harmonisation reduces costs and builds value chains that stretch from Accra to Addis Ababa.”

AfCFTA: The Continental Catalyst

The African Continental Free Trade Area (AfCFTA) could be the game-changer. Its proposed Rules of Origin (RoO), requiring vehicles to contain 40% local content for tariff-free trade, might reshape supply chains. For Ghana, this could mean component manufacturing booms; for South Africa, expanded markets for its OEMs. Regional collaboration is already budding. Botswana’s Delta Automotive supplies wiring harnesses to South African plants, a synergy Backhaus-Jerling calls “a blueprint for cross-border industrialisation.”

Yet AfCFTA’s success hinges on execution. “It’s not just about agreements,” says Biene. “It’s about ports that clear goods swiftly, roads that connect factories, and grids that support electric vehicle (EV) charging.”

Botswana’s Delta

Delta Automotive Technologies exemplifies this potential. Founded with an $80-million African Development Bank (AfDB) credit line, the company now produces 120 wiring harnesses daily for Volkswagen’s Polo Vivo and Nissan’s H60 models. By 2027, it aims to triple output, employing 1 000 workers — 95% Batswana nationals.

“This isn’t just manufacturing; it’s opportunity,” says Delta’s Director of Manufacturing, Darryn Hattingh. The factory’s impact ripples beyond Lobatse: rural communities gain skilled jobs, women shatter industry stereotypes (75% of Delta’s workforce is female), and Botswana diversifies beyond diamonds.

Clara Kaekane, a Delta engineer, embodies this shift. “We’re challenging perceptions,” she says. “Every harness we build proves women belong in engineering and Africa belongs in global supply chains.”

The EV Opportunity

As the world pivots to electric mobility, Africa can’t afford to lag. Kenya’s electric motorbike boom and Morocco’s EV exports hint at a greener future. Ghana, with its renewable energy mix, is poised to lead in battery assembly and EV production. Initiatives like Volkswagen’s GenFarm — electric tractors deployed in Rwanda — show how local solutions can address global challenges.

But EVs require more than innovation. “Africa needs infrastructure—charging stations, reliable power, and skilled technicians,” notes Biene. Ghana’s planned technical institutes, focusing on EV tech, could become regional talent hubs.

From left, Teddy Mugabo, CEO: Greenfund Rwanda, Michael Frambourg, Executive Manager: Sustainability Solutions, Volkswagen Group Innovation Centre Europe, Martina Biene, Chairperson & Managing Director: Volkswagen Group Africa, Dr Ron Rosati, Vice Chancellor: RICA, Dr Telesphore Ndabamenye, Director General: Rwanda Agriculture Board, Serge Kamuhinda, CEO: Volkswagen Mobility Solutions Rwanda, Hildegard Muller, President: VDA.

The Used Car Conundrum

Grappling with used imports remains thorny. In Ghana, 70% of vehicles are second-hand, often evading emissions standards. Banning them risks public backlash, but gradual reforms — stricter age limits, low-interest loans for new cars — could tilt the balance. Kenya’s 2018 age limit (eight years for imports) offers a model, though enforcement is patchy.

Financing the Future

Development finance institutions like AfDB are critical. Their investment in Delta Automotive unlocked $23-million in exports and positioned Botswana as a component supplier. “This is how you industrialise Africa,” says AfDB’s Moono Mupotola. “Connect communities to global value chains.”

Yet private-sector partnerships are equally vital. Volkswagen’s collaboration with Ghana’s Universal Motors to assemble Tiguan SUVs shows how OEMs can seed local industries.

Africa’s automotive journey isn’t about catching up — it’s about redefining mobility on its own terms. From Algeria’s emerging factories to South Africa’s OEM hubs, the pieces are falling into place. But without political drive, even the best policies stall.

As Backhaus-Jerling puts it, “Africa has the market, the youth, and the resources. Now, we need the will to build an industry that doesn’t just assemble cars but engineers solutions for the world.”

In Lobatse, that future is already taking shape. With every wire harness Delta’s workers craft, they’re weaving a new narrative — one where Africa isn’t just open for business but is building the vehicles that will drive it forward.

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Chery's 19 New Hybrid Models Unveiled for 2025

Chinese automaker Chery has announced plans to launch 19 hybrid vehicles across multiple categories — including hybrid electric (HEV), plug-in hybrid (PHEV) and range-extender electric (REEV) models — in 2025. The first of these will be showcased under its newly established Chery Super Hybrid (CSH) brand at Auto Shanghai 2025, with the Tiggo 7 CSH, Tiggo 8 CSH and Tiggo 9 CSH set to premiere publicly at the event.

The next-generation CSH models will feature a hybrid engine achieving a thermal efficiency of 46,5%, paired with a transmission system operating at 93% efficiency. This combination is expected to enable fuel consumption rates as low as 3 l/100 km.

A dedicated 2.0 TGDI hybrid engine, integrated with DHT230 and DHT280 transmissions, will deliver total system outputs of up to 280 kW, supported by a hybrid motor capable of reaching 24 000 r/min. Designed for adaptability, the technology includes custom power configurations for off-road scenarios, allowing drivers to navigate challenging environments such as deserts and rocky landscapes.

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Chery’s hybrid technology will be deployed across multiple platforms: the Super Hybrid Off-road Platform, Super Golden Extended-Range Platform, High-performance Electric Platform and standard Super Hybrid Platform. This modular approach aims to cater to varied consumer needs and driving conditions.

Jay Jay Botes, Chery’s General Manager for South Africa, emphasised the company’s focus on innovation and sustainability: “By advancing hybrid technology, we aim to promote eco-friendly mobility solutions that align with global environmental goals. Markets like South Africa, where we plan to introduce electrified models later this year, represent significant growth opportunities.”

The CSH brand was formally unveiled at Chery’s Hybrid Night & Open Source Initiative event in Wuhu, China, earlier this month. The launch signals the company’s transition from adopting existing technologies to spearheading developments in hybrid systems. Chairman Yin Tongyue outlined the strategy’s foundation in sustainability, prioritising eco-conscious design, affordability, safety and extended driving ranges to meet diverse consumer demands.

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With more than 20 years of research and development, Chery has established in-house control of core hybrid technologies, stringent safety protocols and an open-source ecosystem developed alongside international partners. The company began exploring hybrid systems as early as 2001, positioning itself among China’s early pioneers in the field.

To demonstrate the capabilities of its CSH technology, Chery will undertake a 1 600-kilometre evaluation drive from the Three Gorges to Shanghai via Wuhan and Wuzhen. The four-day journey, featuring the Tiggo 9 CSH, aims to highlight the durability and efficiency of the hybrid system under varied conditions.

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Africa Automotive - Billy Tom Leads AITF Driving Change in Automotive Equity

The Automotive Industry Transformation Fund (AITF), established in 2020 to drive equity and growth in South Africa’s automotive sector, has appointed Isuzu SA CEO Billy Tom as its new chair, succeeding independent chair Dr Sizeka Magwentshu-Rensburg.

The fund, backed by major manufacturers including BMW, Ford, Isuzu, Mercedes-Benz, Nissan, Toyota, and Volkswagen, operates as a collective Equity Equivalent Investment Programme (EEIP) under BBBEE codes. Each contributing firm allocates a portion of annual earnings to foster black-owned automotive enterprises through funding, market access, and mentorship.

Billy Tom

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Under Tom’s leadership, the AITF has transitioned to a rotational chair system, enabling OEM executives to leverage industry expertise directly. Since its inception with an initial R596-million investment, the fund has supported 70 black-owned companies — surpassing its 2029 target of 90 — and facilitated R5-billion in market access. A further R1-billionn has been earmarked to develop tier 2 and 3 black-owned suppliers, alongside R500-million reserved for new energy vehicle (NEV) infrastructure, despite hybrids dominating 85% of the niche 3% NEV market share.

Tom highlighted challenges such as inefficiencies at South African ports, where logistical bottlenecks and security issues disrupt supply chains. These hurdles have intensified the push for localising components, a strategy reinforced by pandemic-era lessons. He cited a success story where a black female-owned supplier, initially providing R40-million in parts to Isuzu, secured R200m in contracts after AITF and Industrial Development Corporation support.

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However, external pressures loom. US tariffs on automotive imports, introduced under former President Donald Trump, threaten South Africa’s R35-billion annual vehicle exports to the US — its third-largest market.

Trade, Industry, and Competition Minister Parks Tau confirmed the government is considering expanding the Automotive Production and Development Programme (APDP), which offers production-linked incentives, to mitigate tariff impacts. Naamsa, representing local OEMs, warned the 25% levy could raise costs for US consumers and reduce export viability for brands like BMW and Ford.

Amid these headwinds, Tom advocates bolstering intra-African trade, referencing Algeria’s shift from importing 23 000 South African vehicles in 2011 to pursuing local production via partnerships with 13 international firms, including Hyundai and China’s Great Wall Motor. Algeria’s import ban and push for 500 component factories mirror broader continental strategies to enhance self-reliance.

Tom emphasised Africa’s need to “bulletproof” itself against global disruptions, drawing parallels to vaccine inequity during the pandemic. While acknowledging progress, he noted the AITF’s journey was far from complete, balancing ambition with systemic challenges.

As South Africa navigates trade uncertainties and infrastructural reforms, the fund remains pivotal in shaping an inclusive, resilient automotive future.

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US Tariff Impact on South African Automotive Industry

The recent announcement of a 30% tariff by the United States on goods imported from South Africa has created significant concern within the global motoring industry. This substantial increase in tariffs is expected to have far-reaching implications for South African car manufacturers, exporters, and the broader economy. The auto industry is now preparing for the substantial adjustments that this policy shift will necessitate.

Key stakeholders are paying close attention to how these changes will play out, as the new tariff introduces a host of challenges for South Africa's automotive sector, impacting everything from production costs to market competitiveness.

South Africa's automotive exports to the United States have been a crucial component of the country's export portfolio. In fact, the export of vehicles and parts from South Africa to the US is valued at over $2-billion. The introduction of the tariff is poised to disrupt this flow significantly. Notably, automobile exports accounted for 64% of South Africa's exports under the US African Growth and Opportunity Act (AGOA) in 2024. With such a substantial reliance on the American market, the potential impact of the tariff cannot be underestimated.

Industry experts and economists are weighing in on the situation. Some predict a decrease in South African vehicle exports to the US, which could lead to surplus inventory and financial losses for manufacturers. Additionally, South African cars could become less competitive in the US market due to increased costs, further exacerbating the situation.

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The new tariff brings numerous difficulties for South African car manufacturers. An immediate concern is the rise in production costs, which stems from higher expenses for raw materials and components. This escalation in costs could lead to increased vehicle prices, potentially dampening demand in both domestic and international markets.

Manufacturers might need to reconsider their production strategies to stay competitive. This could include relocating manufacturing to countries with more favorable trade terms or investing in technologies that cut costs. However, such shifts require significant time and resources, adding to the industry's existing challenges.

Additionally, the uncertainty surrounding international trade relations could make it harder for manufacturers to plan for the future. The industry may face financial strain and operational disruptions as it navigates these complex issues.

Effects on the South African Economy

The broader South African economy is poised to experience significant repercussions due to the new US tariff. The automotive industry is not only a major contributor to South Africa's GDP but also a substantial employer, so a decline in exports could trigger widespread economic consequences. Potential job losses in the auto industry are a serious concern, as reduced production and export volumes may compel manufacturers to downsize their workforce.

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Additionally, the uncertainty surrounding trade relations with the US might dampen investor confidence in South Africa's automotive sector. This could lead to reduced investment, stalling the industry's growth and innovation. Companies may also face increased financial strain, making it harder to maintain operations and fund new projects.

The knock-on effects could extend to related industries, such as suppliers and logistics providers, amplifying the economic impact. Overall, the new tariff introduces a layer of complexity that the South African economy will need to navigate carefully, affecting everything from employment rates to future investment opportunities.

Responses from Industry Stakeholders

Industry stakeholders are actively addressing the tariff announcement, with varied reactions across the sector. Renai Moothilal, CEO of the National Association of Automotive Component and Allied Manufacturers, emphasized the need for more details, stating that the association will await further information on the specific components affected by the tariff proclamation.

Government officials and industry leaders are expected to pursue diplomatic discussions to negotiate the tariff's terms with the US, aiming for potential exemptions or revisions. Some stakeholders are urging the South African government to strengthen trade agreements with other countries to offset the impact of the US tariff.

There is also a call for increased investment in domestic technologies and alternative markets to reduce dependency on US exports. This multi-pronged approach could help mitigate some of the tariff's adverse effects on the South African automotive sector.

Chairperson of the federal council of the Democratic Alliance (DA), Helen Zille says the global tariffs unleashed by US President Donald Trump spell disaster for South Africa, amid the souring bilateral relationship.

“What can one say? It is going to be disastrous for our automotive industry in particular if they have 30%  tariffs slapped on our motor vehicles that are made in the facilities of Pretoria and Nelson Mandela Bay. Obviously, it is going to be terrible for us,” she said.

“The government won't learn. There is tension between the ANC and just about every democracy in the world, and there is certainly profound tension between the ANC and democrats in South Africa.”

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In the long run, South African car manufacturers will need to rethink their strategies to adapt to the new trade environment. They might start exploring untapped markets and diversifying their export destinations to reduce their reliance on the US This could involve strengthening trade relations with other countries and regions, potentially opening new avenues for growth. 

Additionally, investing in advanced manufacturing technologies and improving efficiencies could help mitigate the increased production costs imposed by the tariff. Collaborations with local and international partners could further enhance competitiveness and innovation within the industry. The South African auto industry's ability to navigate these changes will significantly influence its future trajectory.

The 30% US tariff on South African goods presents substantial challenges for the nation's automotive sector. The immediate consequences include a rise in production costs and potential job reductions, putting significant pressure on manufacturers to adapt swiftly.

Over the long term, the industry will likely need to diversify its export markets to lessen dependence on the American market. This shift could open new opportunities but will also require strategic investments in technology and efficiency improvements.

Stakeholders, including government officials and industry leaders, are working on responses to mitigate these impacts. Efforts are underway to negotiate better trade terms with the US and strengthen trade agreements with other countries. Additionally, there's a push for increased investment in domestic capabilities to reduce external dependencies.

The resilience of South African car manufacturers will be critical in navigating these changes. By exploring new markets and investing in advanced manufacturing technologies, the industry can adapt to the evolving trade landscape. While the road ahead is fraught with challenges, the potential for innovation and growth remains. The South African automotive sector's ability to pivot and respond strategically to these new conditions will significantly influence its long-term success and stability.

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BYD Expands EV Lineup with Innovative Models for South Africa

Global new energy vehicle manufacturer BYD has unveiled three models — the Shark 6, Sealion 6 and Sealion 7 — in South Africa, broadening its local lineup to six vehicles. The launch underscores the brand’s focus on delivering tailored, sustainable transport solutions amid growing demand for efficient mobility options.

Steve Chang, Managing Director of BYD Auto SA, expressed enthusiasm about the expansion: “South African drivers now have access to advanced technology that prioritises efficiency and adaptability. These models align with our vision of combining innovation with practicality, ensuring a greener future without compromising performance.”

The introduction follows the 2023 arrivals of the Atto 3 compact SUV, Dolphin hatchback, and Seal sedan. The latest additions complete BYD’s dual strategy of offering both plug-in hybrids (PHEVs) and electric vehicles (EVs), catering to diverse driving needs.

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BYD Shark 6
Marking BYD’s debut in South Africa’s pick-up segment, the Shark 6 pairs rugged capability with hybrid efficiency. Built on the DMO Super Hybrid Off-road Platform, the model merges off-road durability with SUV-like comfort.

A dedicated rear-drive powertrain, combined with a 1,5-litre rurbo engine and EHS electric hybrid system, generates over 320 kW — akin to a conventional 4,0-litre V8 — while accelerating from 0-100 km/h in 5,7 seconds. Intelligent electric all-wheel drive adjusts torque distribution in real time, optimising traction across varied terrains.

The plug-in hybrid offers a combined WLTP range of 670 km, including 85 km in pure electric mode. Even when relying solely on fuel, consumption remains at 9,6 l/100 km. Safety features include BYD’s Blade Battery, integrated via CTC technology to enhance structural rigidity by 22%, alongside a high-strength steel frame for added protection.

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BYD Sealion 6

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Designed for families, the Sealion 6 plug-in hybrid SUV balances power and practicality. Its Super DM-i technology enables seamless transitions between electric and hybrid modes, with an all-wheel-drive variant achieving 0-100 km/h in 5,9 seconds (238 kW power, 550 Nm torque). The front-wheel-drive model prioritises efficiency at 5,5 l/100 km, offering ranges of 1 080 km (FWD) and 870 km (AWD).

Tech highlights include a 15,6-inch adaptive infotainment screen, voice control and a head-up display projecting real-time driving data. The cabin’s intuitive layout aims to enhance connectivity, making it suited for both urban errands and cross-country journeys.

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BYD Sealion 7

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As BYD’s fourth pure EV in South Africa, the Sealion 7 sport-coupé SUV combines rapid acceleration with luxury. Its rear motor — featuring dual V-shape magnets and a 92% slot-fill rate — spins at up to 23 000 r/min, enabling a 0-100 km/h sprint of 4,5 seconds (Performance edition) or 6,7 seconds (Premium edition). The 82,56 kWh Blade Battery delivers up to 482 km (WLTP), while 150 kW DC fast-charging restores 20%-80% capacity in 30 minutes.

Cell-to-Body (CTB) architecture maximises cabin space, offering 500 litres rear and 58 litres front storage. A rotating 15,6-inch touchscreen, compatibility with Android Auto and Apple CarPlay, and a 12-speaker Dynaudio system elevate in-car entertainment.

In a brief shimmy around a Sandton car park in the car, what really stood out besides the blissful acceleration and seemingly endless power was the massive rear seat space that still left room in the luggage department for more than a weekend getaway.

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The new models will debut across eight BYD dealerships in South Africa, with plans to expand sales and service networks. Each vehicle includes tailored charging solutions, such as a 7 kW wall box and portable charger for the Sealion 7.

Established in 1995, BYD has evolved from a battery producer to a global leader in renewables and transport, operating in over 400 cities worldwide. Its automotive division, BYD Auto, specialises in EVs and PHEVs, pioneering technologies like the Blade Battery and CTB construction. The firm ceased production of internal combustion engines in 2022, focusing solely on zero-emission mobility.

Pricing:

Sealion 7 Premium FWD           R1 099 900

Sealion 7 Performance AWD     R1 299 900

Sealion 6 Comfort FWD             R   639 900

Sealion 6 Dynamic FWD            R   689 900

Sealion 6 Premium AWD           R   789 900

Shark 6                                     R   959 900

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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.

Lada Iskkra

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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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.

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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.

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Africa Automotive: All go for IATF 2025 with eyes on Auto Sector

With the ‘go’ button having been pressed on the Intra-Africa Trade Fair 2025 taking place in Algiers, Algeria in September next year, the countdown has begun towards an event expected to result in trade an investment deals exceeding US$44-billion.

Although only a sub-set of the entire IATF event, the Africa Automotive Show will play a large – and significant – part in the proceeedings given the intense activity in the automotive sector taking place throughout Africa that, together with full acceptance and implementation of the African Continental Free Trade Are (AfCTA) is helping to turn the continent into one large automotive hub.

Some 35000 attendees from more than 140 nations are expected to gather in Algiers for the Intra-African Trade IATF2025 and the week-long exhibition will feature 2 000 exhibitors from Africa and around the globe, showcasing goods and services to potential buyers and industry professionals.

Organised by the Government of Algeria under the theme ‘Gateway to New Opportunities’, the event will leverage the AfCFTA, which comprises around 1,4-billion people and a combined GDP of more than US$3,5-trillion. The biennial fair is run by the African Export-Import Bank (Afreximbank) in collaboration with the African Union and AfCFTA Secretariat.

Chief Olusegun Obasanjo, Chair of the IATF Advisory Council and former Nigerian president, highlighted the fair’s impact: “The IATF has become a vital platform for fostering intra-African trade and investment by facilitating business interactions and providing access to trade and market information. With more than 70 000 visitors and more than 4 500 exhibitors at the last three editions, the fair has contributed $100-billion in trade deals. We encourage African businesses to seize this opportunity to expand their markets and engage with peers."

The event will host numerous key activities, including a trade exhibition, the Creative Africa Nexus (CANEX) programme, featuring exhibitions and summits on African fashion, film, music, literature, sport, and more.

An example of the burgeoning automotive activity is the recent announcement by Stellantis to expand its Middle East and Africa (MEA) footprint by launching the locally assembled Jeep Grand Cherokee L in Egypt. This milestone, achieved at the Arab American Vehicles (AAV) plant in Cairo, is a pivotal part of the automaker’s ‘Dare Forward 2030’ strategy.

“This marks a crucial moment for Stellantis in Egypt,” said Samir Cherfan, Chief Operating Officer of Stellantis MEA. “By restarting production at AAV, we are reaffirming our commitment to Egypt's industrial growth and aiming to solidify our leadership in the region. Our goal is to capture over 22% of the market by 2030.”

Cherfan revealed Stellantis’ ambitions to become the top player in the region, selling 1-million vehicles annually by 2030, with 35% of those being electric. The plan also includes achieving 90% local production autonomy, reinforcing the company’s position as the most regionally integrated automotive manufacturer.

The local assembly of the Jeep Grand Cherokee L not only supports Stellantis' vision but also highlights Egypt’s strategic role within its wider operations. This move strengthens the company’s ability to serve markets across the MEA, boosting local job creation and skills development.

While the Egyptian production will be for left-hand drive markets, Stellantis South Africa notes it is not inconceivable this could expand to right-hand drive markets particularly in Sub-Saharan Africa.

Hesham Hosni, Managing Director of Stellantis Egypt, noted: “Our long-standing partnership with the AAV plant is key to our success here. This relaunch reflects our confidence in Egyptian expertise and infrastructure."

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August 2024 Vehicle Sales See Decline Despite Strong July Performance

New vehicle sales in South Africa took a dip in August 2024, following a robust performance in July, according to naamsa | The Automotive Business Council. Despite the positive momentum in July, the market couldn't maintain its upward trajectory into August.

The total domestic new vehicle sales for August 2024 stood at 43,588 units, marking a decrease of 2,266 units or 4.9% compared to the 45,854 vehicles sold in August 2023. The export market saw an even sharper decline, with sales dropping by 14,658 units or 34.3%, resulting in 28,073 vehicles exported in August 2024 compared to 42,731 units in the same month last year.

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Within the total industry sales, 35,503 vehicles, or 81.5%, were sold through dealerships. The vehicle rental industry accounted for 12.4% of sales, government purchases made up 3.3%, and corporate fleets accounted for 2.8%.

On a positive note, the new passenger car market saw growth, with 30,022 units sold in August 2024, an increase of 891 cars or 3.1% from the 29,131 sold in August 2023. Car rental sales were particularly strong, contributing 16.7% of all new passenger vehicle sales for the month.

However, the market for new light commercial vehicles, including bakkies and minibuses, experienced a significant decline, with sales falling by 2,941 units or 21.5% to 10,709 vehicles, compared to 13,650 in August 2023. The medium and heavy truck segments showed mixed results. Medium commercial vehicle sales rose by 8.1% to 748 units, while heavy trucks and buses saw a decrease of 11.4%, with only 2,109 units sold compared to 2,381 in August 2023.

The overall decline in vehicle exports continued, influenced by weak economic activity in Europe. Despite this, vehicle exports to the US saw a significant increase of 132% for the year to date compared to the same period in 2023.

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The naamsa SA Auto Week, scheduled for October 15-18, 2024, at the Cape Town International Convention Centre, will provide a crucial platform for networking and discussions within the South African automotive sector. The event will showcase 100 years of the industry’s history and include the naamsa Accelerator Awards and the Captains of Industry Gala, among other highlights.

Despite the challenges, there are signs of optimism. The stronger rand, lower consumer inflation, decreasing fuel prices, and potential interest rate cuts before the end of the year are expected to boost consumer sentiment and economic activity. While immediate improvements in vehicle affordability may be limited, these factors are anticipated to contribute to a more positive outlook for the remainder of the year.

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