Strong demand drives SA to decade-high vehicle sales
The South African motor industry continues to defy expectations by posting another month of exceptional growth.
- Industry News
- 4 November 2025
This past Friday (14 October), the National Union of Metalworkers of South Africa (NUMSA) signed an above-inflation wage agreement with the Automobile Manufacturers Employers Organisation (AMEO) that will see workers in the automotive industry receive an 8.5% increase.
AMEO represents motor manufacturers such as Mercedes Benz, BMW, Nissan, Toyota and Volkswagen, while NUMSA is the country’s biggest union with over 400 000 members.
According to the deal that was signed at the National Bargaining Forum, the workers will receive the 8.5% increase in the first year followed by a 7% increase in both the second and third year of the three-year deal, which will be valid until 30 June 2025.
In addition, each employee will also receive a taxable one-off gratuity payment of R10 000.
The union said that workers could expect back pay from July to September at the end of this month.
In August, NUMSA rejected AMEO’s offer of a 6.2% increase in year one, followed by an increase of 5.6% in year two and 4.7% in year three.
In the statement NUMSA released to announce the agreement, they said that it was “significant that we have maintained the standard for the sake of workers and their families, when other unions are encouraging members to sign agreements and settle with (sic) 3%”.
The South African motor industry continues to defy expectations by posting another month of exceptional growth.
According to a Reuters report, Renault is engaged in active discussions with several automobile manufacturers, including China's Chery, as the French company explores opportunities for collaborative production and distribution agreements.
South Africa’s new-vehicle market continued its upward trajectory in October 2025, supported by easing inflation, a firmer rand, continued signs of improving consumer sentiment and demand recovery in key export markets.
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If you are not taking care of your customer, your competitor will.
Bob Hooey
The South African motor industry continues to defy expectations by posting another month of exceptional growth.
According to a Reuters report, Renault is engaged in active discussions with several automobile manufacturers, including China's Chery, as the French company explores opportunities for collaborative production and distribution agreements.
South Africa’s new-vehicle market continued its upward trajectory in October 2025, supported by easing inflation, a firmer rand, continued signs of improving consumer sentiment and demand recovery in key export markets.