G20 Summit sets the stage for growth in SA’s tyre industry

Independent retailers are now in a prime position to benefit from stronger local supply chains, major investment in electric vehicle production and the opening of a unified African market, all supported by international funding and government incentives.

Dylan Petzer, National Vice-Chairman of the Tyre Equipment Parts Association (TEPA), part of the Retail Motor Industry Organisation (RMI), believes the summit has shifted attention to a sector that has long been overlooked. For years, automotive development discussions focused on manufacturers and global corporations, while the businesses that keep vehicles on the road received little recognition. The G20 outcomes now offer an opportunity to rethink how this vital industry can thrive.

One of the most significant developments is South Africa’s strengthened role in the global critical minerals economy. The G20’s new framework encourages local processing rather than exporting raw materials, which will make supply chains more resilient, reduce costs and improve access to high-quality tyres and components. Dylan notes that when materials are refined locally, manufacturers enjoy lower input costs, allowing retailers to offer competitive pricing and maintain healthy margins.

The electric vehicle revolution is another area of opportunity. With €750 million in European investment and tax incentives running until 2036, EVs are creating a premium market that demands specialised tyres, braking systems and diagnostic tools. Retailers who invest early in training and stock tailored products will secure a strong foothold before larger chains move in.

The African Continental Free Trade Area (AfCFTA), supported by the G20, is also paving the way for regional expansion. South African retailers can now tap into broader supply networks, establish franchises across the continent and even operate as distributors beyond national borders, thanks to a regulatory framework designed to enable growth.

Skills development is another key focus. Commitments to vocational training and apprenticeships will allow retailers to nurture local talent and create career pathways in a sector that is gaining momentum. Sustainability adds further value, with South Africa’s waste tyre management plan opening new revenue streams through retreading and responsible disposal. Corporate clients increasingly prioritise environmentally responsible solutions, offering retailers both ecological and financial benefits.

The G20 Summit has made it clear that independent retailers are essential to Africa’s mobility. Opportunities abound, from EV adoption to cross-border expansion and green business practices. The time to act is now, and South Africa’s tyre and parts retailers are ready to lead the transformation.