1930s: Early years:
- During the 1930s, the South African vehicle market was small, with most vehicles being imported, primarily from Europe and the USA.
- Ford and General Motors assembled 33 000 units in 1933.
- The Great Depression’s lingering effects limited consumer spending.
1940s: World War II and post-war recovery:
- Vehicle imports and sales plummeted during the war (1939–1945) with vehicle imports and assembly coming to a standstill between 1943 and 1945.
- After the war, vehicle sales rebounded as the economy recovered.
- In 1947, five assembly plants assembled 83 000 vehicles locally.
1950s & 1960s: Growth and domestic assembly:
- The South African government introduced policies to encourage domestic vehicle assembly with Phase 1 to Phase 6 of the local content programmes (1961–1995) being implemented.
- Rising incomes and urbanisation contributed to increased demand, and sales increased to 100 000 units in 1957 when import quotas, to protect the balance of payments, were eliminated, followed by record sales of 143 373 units in 1964.
- In 1958, South Africa was ranked ninth in the world’s passenger car parc (number of registered vehicles).
- Manufacturers like Ford, General Motors and Volkswagen produced 120 000 vehicles in 1960, more than any other developing country in the world.
1970s: Economic challenges and market shifts:
- The 1973 oil crisis caused a decline in vehicle sales as fuel prices surged.
- Increased local content: Policies requiring higher local content supported domestic vehicle manufacturing but increased costs.
- There were 13 OEMs with 39 models supported by 300 automotive component suppliers in 1975, but disinvestments by General Motors and others resulted in OEMs decreasing from 16 to seven in 1979.
1980s: Political and economic turbulence:
- International sanctions and political instability owing to apartheid, affected vehicle sales.
- Despite challenges, OEMs diversified their offerings to include more affordable vehicles, maintaining sales momentum at the time.
- Domestically manufactured engines, gearboxes and axles for commercial vehicles were introduced for 19 commercial vehicle assemblers operating in the domestic market in 1980.
1990s: Post-apartheid recovery:
- The post-apartheid era saw South Africa re-enter the global economy, leading to a surge in vehicle imports and increased sales.
- New global brands entered the domestic market, increasing competition and consumer choice.
- In 1993, seven OEMs produced 39 different passenger car and light commercial vehicle models but price comparisons between South Africa and Germany, Japan, the US, the UK and Australia reflected a South African vehicle price disadvantage of up to 72%.
- In September 1995 the Motor Industry Development Programme (MIDP) was implemented and successfully integrated the South African automotive industry into the global automotive environment.
2000s: Industry boom:
- The early 2000s saw strong economic growth, with record-high sales, and in 2006, an all-time high of 714 315 sales were recorded, a record that still stands in 2024.
- Access to credit and financing has made vehicles more affordable for more people.
2010s: Market maturity and challenges:
- The 2008/2009 global financial crisis led to a significant drop in vehicle sales in the domestic market, but recovery began in the following years.
- Consumer preferences shifted, with SUVs and Crossovers becoming more popular.
- The first new energy vehicle (NEV), the Toyota Prius hybrid, entered the South African market in 2005, though sales remained limited.
- In 2013, the MIDP was replaced by the Automotive Production and Development Programme (APDP).
2020s: COVID-19 and recovery:
- The COVID-19 global pandemic caused a sharp decline in vehicle sales in 2020, with lockdowns and economic uncertainty affecting demand.
- In 2021, the APDP was replaced by the APDP Phase 2 (APDP2) as part of the South African Automotive Masterplan 2035 (SAAM 2035), further strengthening South Africa’s position as a global player.
- By 2021 and 2022, vehicle sales began recovering, driven by pent-up demand and a focus on affordability.
- Annual new-vehicle sales figures since 2023 have shown signs of stabilisation, with NEVs beginning to gain traction, but the segment remained stymied owing to pricing challenges.
(Source: Data from the Automotive Business Council’s (naamsa) newly released Automotive Trade Manual 2025).