Looking at the latest Automotive Trade Manual of the Automotive Business Council (naamsa) the export of catalytic converters from South Africa, literally across the globe, caught the eye.
Locally manufactured catalytic converters are by far the single largest export component going from South Africa literally across the globe. It is also a useful method to offset a percentage of the import duties bringing vehicles and components into the country.
According to the Trade Manual, automotive component exports decreased by R3.4 billion, or 5.2%, to R63.4 billion in 2024 from R66.9 billion in 2023, mainly owing to the decline in catalytic converter exports.
However, catalytic converters remain the top automotive component exported from South Africa, comprising 30.4% of total automotive component exports, followed by engine parts, tyres and transmission shafts and cranks.
The global demand and supply patterns that have changed from the dominance of ICE vehicles to a mix that incorporates BEVs, plug-in hybrids and hybrids continue to affect the demand for catalytic converters.
A quick Internet search reveals that the main minerals used in catalytic converters are platinum, palladium and rhodium, tasked with cleaning the air from pollutants in exhaust fumes. The reason why South Africa is at the forefront of manufacturing and exporting converters is because of our healthy reserves of these three minerals.
Electric Vehicles do not use catalytic converters. The batteries used in EVs fortunately contain minerals like lithium, nickel, cobalt, manganese and graphite. South Africa is the leading producer of manganese and the country has healthy deposits of the rest alongside countries like the DRC, Chile, Australia and China.
This means that South Africa could be a key player in the supply chain of the EV (and hybrid) power source alongside switching some of its ICE production over to manufacturing EVs with the growing demand for new-energy vehicles predicted in the coming years.
South Africa’s automotive clusters are strategically located to leverage infrastructure, skilled labour and proximity to major markets, and they play a vital role in its industrial strategy, leveraging regional strengths and global partnerships to maintain competitiveness.
South Africa provides the US with 25% of all its imports of nine critical minerals, including manganese and platinum. Therefore, AGOA (the African Growth and Opportunity Act), is a US trade law enacted in 2000 that provides duty-free access to the US market for eligible sub-Saharan African countries.
(Picture: Ford).
Catalytic converters:
Country |
2020 |
2021 |
2022 |
2023 |
2024 |
Total (R million) |
25 978.1 |
34 890.9 |
33 955.1 |
29 494.0 |
19 263.8 |
Germany |
30% |
36% |
32% |
33% |
42% |
Czech Republic |
26% |
22% |
20% |
22% |
25% |
Thailand |
- |
1% |
3% |
4% |
8% |
Turkey |
3% |
4% |
3% |
3% |
6% |
USA |
12% |
12% |
16% |
14% |
4% |
Chery South Africa says it is accelerating its growth in the local car-rental industry, with its national passenger vehicle market share reaching 6.2% in the past month. As interest in Chery’s range of vehicles continues to grow for consumers and fleet operators, the brand is seeing increasing interest from rental car companies nationwide.
Ulterio Motiv will exhibit a total of three vehicles at this year’s Hankook Land Cruiser Festival. Held annually, the Land Cruiser Festival caters not only to Toyota Land Cruiser enthusiasts, but also to various companies that supply products, upgrades and equipment for these vehicles.
Following the launch of the family-orientated Ford Territory last year, Ford SA is set to raise the bar for its compact sport utility vehicle (SUV) with a decent value-for-money proposition with the imminent release of the Territory Dark Edition.
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Chery South Africa says it is accelerating its growth in the local car-rental industry, with its national passenger vehicle market share reaching 6.2% in the past month. As interest in Chery’s range of vehicles continues to grow for consumers and fleet operators, the brand is seeing increasing interest from rental car companies nationwide.
Ulterio Motiv will exhibit a total of three vehicles at this year’s Hankook Land Cruiser Festival. Held annually, the Land Cruiser Festival caters not only to Toyota Land Cruiser enthusiasts, but also to various companies that supply products, upgrades and equipment for these vehicles.
It is more good news about car sales for May with new-vehicle figures of 45 308 units, which reflected an increase of 8 169 units, or a substantial gain of 22.0%, from the 37 139 vehicles sold in May 2024, buoyed by relatively stable economic fundamentals earlier in the year.
