Ramaphosa confident in SA Auto Industry's future amid global challenges

President Cyril Ramaphosa has expressed strong confidence in South Africa's automotive industry, stating it is making crucial investments to build resilience and lead the transition to green mobility despite mounting global pressures.

Screenshot 2025 08 04 154555

In his weekly newsletter this week, Ramaphosa emphasized protecting existing automotive jobs as paramount, particularly with looming US tariffs threatening the sector. He stressed the urgent need to diversify export markets, committing to work with industry players to expand their continental presence and leverage existing trade relationships within the Southern African Development Community (SADC) region.

The sector's economic impact is substantial, supporting more than 115 000 direct manufacturing jobs and over 500 000 positions across the value chain, while contributing approximately 5.3% to the country's GDP. Currently, exports account for around two-thirds of local vehicle production.

However, Ramaphosa acknowledged significant challenges ahead, including new emissions regulations in key markets like the European Union and fresh USA tariffs. The global shift from internal combustion engines toward hybrid and electric vehicles has made green mobility increasingly critical for manufacturers.

The recent launch of BMW's new X3 plug-in hybrid at the company's Rosslyn plant in Tshwane highlighted this transition. South Africa serves as the exclusive global production site for this model, representing what Ramaphosa called "a welcome signal to investors that South Africa remains a favourable place to do business."

More Industry News stories

Dealers encouraged to attend DealerCon 2025

Dealers encouraged to attend DealerCon 2025

In anticipation of DealerCon 2025, Brandon Cohen (photo), Chairperson of the National Automobile Dealers’ Association (NADA) of South Africa, emphasised the critical role of the upcoming summit in empowering automotive dealers amid significant market shifts.

  • 28 August 2025
Mercedes-Benz Pension Fund offloads its entire Nissan stake

Mercedes-Benz Pension Fund offloads its entire Nissan stake

The pension fund of German car manufacturer, Mercedes-Benz, has disposed of its entire shareholding in Japan's Nissan Motor for 47.83 billion yen (£255 million) on 26 August, according to a source familiar with the transaction.

  • 28 August 2025