President acknowledges that auto industry is under growing pressure
South Africa’s automotive sector is under “growing pressure”, writes President Cyril Ramaphosa in his weekly newsletter.
He states that incrementally stricter vehicle emission regulations in the country’s biggest export destinations, particularly the EU, as well as the introduction of import tariffs in the US, are all factors that are “expected to have a significant impact on the sector”.
“With exports currently accounting for around two-thirds of local vehicle production, it is critical that we strengthen the sector to not only overcome current headwinds, but to ensure its long-term sustainability.
“As government, we are working to ensure there is an enabling regulatory and policy environment to support the growth of this burgeoning industrial activity.”
Government’s Automotive Production and Development Programme is officially set for a mid-term review in 2026.
Ramaphosa emphasises that it is paramount to protect the existing jobs in the sector particularly in the light of the looming US tariffs.
“The need to diversify our export base has become all the greater.
“We are committed to working with the sector to expand its continental footprint, building on the already strong growth of exports to the Southern African Development Community . . . and leveraging the trade relationships that exist.”
South Africa has a well-established auto manufacturing industry that is more than a century old.
Toyota, Ford, Nissan, Volkswagen, BMW, Isuzu and Mercedes-Benz all have plants that produce vehicles for the local and export markets.
The sector currently supports more than 115 000 direct manufacturing jobs and more than 500 000 jobs across the value chain. It also contributes about 5.3% to South Africa’s GDP.
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