Locally-produced vehicles sales drop in South Africa as Indian- and Chinese-sourced vehicle sales increase.South Africa’s automotive market is moving into an unequal playing field.Chinese government directly incentivises and supports the production of vehicles and parts.South Africa is facing a threat from a shift towards imported vehicles.SA’s auto industry is also being impacted by the entry of Chinese brands into the market.Localisation and local content targets under the SA Automotive Master Plan have not been met.SA’s automotive industry also faced three other structural challenges.National Association of Automotive Component and Allied Manufacturers (Naacam) CEO confirmed that last year there were significant volume reductions.SA's automotive industry is at an early stage of deindustrialisation due to shift towards imported products.The industry requires a stable foundation for industrialisation, particularly in energy, logistics and infrastructure.