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

BAIC to assemble B30 at Gqeberha plant in Eastern Cape

BAIC to assemble B30 at Gqeberha plant in Eastern Cape

BAIC South Africa has confirmed that the all-new BAIC B30 SUV will be assembled locally at the company’s Coega facility in Gqeberha. This step, says BAIC, marks another significant step in the brand’s long-term commitment to the South African market.

  • 29 October 2025
From Kyalami to the World

From Kyalami to the World

Messe Frankfurt expands its roster of shows with a Festival of Motoring in Australia and industry shows in Jakarta and Azerbaijan.

  • 28 October 2025
Protecting your lifeline through servicing and maintenance

Protecting your lifeline through servicing and maintenance

In South Africa, a car is more than a convenience, it’s a lifeline. For many, it’s how they get to work, take children to school, or keep small businesses running, especially when public transport often falls short.

  • 28 October 2025