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SA auto industry faces threat from shift towards imported vehicles

  • 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.

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