Africa's automotive sector is experiencing a significant transformation, with Morocco emerging as a rising star while traditional leader, South Africa, faces mounting challenges.
Production Performance:
South Africa's automotive industry struggled in 2024, producing 599 755 vehicles, a 5% decline from the previous year. This performance, while maintaining the country's 20th global ranking, fell well short of the 784 509-unit target set by the South African Automotive Masterplan 2035.
In contrast, Morocco demonstrated impressive growth, manufacturing 559 645 vehicles, a 5% increase that propelled the North African nation to 23rd place globally. This upward momentum establishes Morocco as an increasingly important player in continental vehicle production.
South Africa's mounting challenges:
Despite hosting seven major international automakers (Volkswagen, Toyota, Ford, BMW, Isuzu, Nissan and Mercedes-Benz), South Africa's automotive sector faces severe headwinds. The industry has been battered by surging Chinese vehicle imports, a weak domestic demand and insufficient local content integration. Imported vehicles now account for 64% of all new vehicle sales locally.
South Africa’s Trade Minister, Parks Tau, revealed the sector's struggles have resulted in 12 manufacturing plant closures and over 4 000 job losses in the past two years. Export challenges compound these domestic issues, particularly after President Donald Trump's import tariffs eliminated preferential access to the USA market under the African Growth and Opportunity Act (AGOA).
Global context and competition:
The global automotive landscape remains dominated by manufacturing giants, with China leading at over 31 million vehicles produced in 2024, more than the USA and Japan combined. This represents part of the 92 million vehicles manufactured worldwide.
China's dominance stems from strong domestic demand, rapid electric vehicle adoption and expanding export capabilities. Meanwhile, the US focused on commercial vehicles, producing 9.1 million commercial units versus just 1.4 million passenger cars.
Looking forward:
The automotive industry's shift toward emerging markets continues, driven by increasing consumer purchasing power, favourable trade agreements and manufacturers seeking competitive production locations. While South Africa maintains significant industrial infrastructure, Morocco's growth trajectory suggests a rebalancing of Africa's automotive manufacturing landscape.
The concentration of global production among China, the US and Japan, which represents 54% of total output, highlights the competitive pressures facing other producing nations as they compete for market share in an increasingly challenging environment.
Hyundai Automotive South Africa officially opened Hyundai Midrand, a new dealership aimed at strengthening the brand’s presence in Gauteng and responding to growing customer demand in one of the province’s fastest-growing commercial corridors.
The compact SUV market in South Africa has gained a new contender with the arrival of the GAC Emzoom Nova. It joins the existing Emzoom Executive and Emzoom R‑Style models, broadening the range offered by Salvador Caetano South Africa, the official distributor of GAC Motor.
Chinese vehicle brand Changan has strengthened its South African retail presence with the opening of a new flagship dealership in Umhlanga, KwaZulu-Natal, as the company pushes ahead with plans to establish about 45 dealerships nationally during 2026.
Advertisement
Advertisement
You can't buy happiness but you can buy cars and that's kind of the same thing.
Unknown
A South African dealership has been instructed to remove or amend an advertisement for a new Jetour T2 after the Advertising Regulatory Board (ARB) ruled that the listing created the impression that a specific vehicle was immediately available for purchase when it was not.
If you were hoping to experience the roaring streets of the Isle of Man TT in 2026, you are already too late. This event, with practice sessions starting on 25 May 2026 and racing commencing on the 30th, requires at least six to twelve months of planning, along with a substantial budget.
Pinewood.AI has added two new embedded modules to its Business Intelligence Solution, giving dealers and OEMs greater insight into financial performance and the customer journey, it says.
