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.
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."
Motor industry leaders are anticipating a sharp fall in American electric vehicle sales after the elimination of a vital R135 000 tax incentive for purchasers.
BNA Motors in Cape Town is celebrating its tenth birthday this year with five separate dealerships in Goodwood and Parow and some major expansion plans for the near future.
The Chinese electric vehicle manufacturer, Leapmotor, has entered South Africa and its vehicles will soon be available at selected Stellantis dealerships across the country.
Advertisement
Advertisement
Have you ever noticed that anybody driving slower than you is an idiot, and anyone going faster than you is a maniac?
George Carlin
Motor industry leaders are anticipating a sharp fall in American electric vehicle sales after the elimination of a vital R135 000 tax incentive for purchasers.
South Africa ranks as the fourth riskiest country to drive in, according to the World's Best Drivers Index 2025, a study by Compare the Market, which tracked 56 countries, according to a report on GadgetWheels.
The Automotive Business Council (naamsa) says the broader economy surprised one and all on the upside in the second quarter, with GDP expanding by 0.8% q/q and household spending showing resilience, in its reaction to the release of the monthly new vehicle sales for September this year.
