Data from the Automotive Business Council’s (naamsa) newly released Automotive Trade Manual 2025 shows us just what a force the Chinese automotive sector is in the world with leading sales and consumption and as the top manufacturer of New Energy Vehicles (NEVs), especially Electric Vehicles (EVs).

Globally, the growth in EV production has been remarkable in recent years, as the industry has entered a period of transition, striving to reduce emissions and to meet the increasing demand for more sustainable transport options.

In 2024, 16 countries exceeded the one million vehicle production mark (ICE - Internal Combustion Engine and NEVs, comprising EVs and hybrids), which is regarded as the international benchmark.

China continued to strengthen its position as the world’s automotive powerhouse in 2024 owing to expanding EV production, with total vehicle production of 31.3 million units, comfortably remaining the world’s biggest market, followed by the US with 10.6 million units, Japan with 8.2 million units and India with 6 million units.

Roughly one in every five vehicles produced in 2023 was an EV according to the International Energy Agency, with the majority by far originating from China.

ICE vehicle production is starting to face challenges in China, with overcapacity at many plants, especially at non-Chinese OEM brands (Original Equipment Manufacturers). Another challenge within the Chinese automotive industry is that it is seeing a second wave of EV manufacturers, with several newcomers joining the market.

Three brands dominate the Chinese EV market, namely, Tesla, BYD and Seres, while 134 brands compete for balance of this highly competitive segment. Global NEV manufacturing capacity stood at more than 22 million units in 2024, with two-thirds in China, 20% in Europe, 10% in North America, and the remainder mainly in South Korea and Japan.

South Africa forms part of the group of global second-tier countries producing below one million vehicles per annum and although it’s manufacturing hybrids, it’s not building any EVs locally yet.

South Africa’s total vehicle production decreased by 5.2%, from 632 362 units in 2023 to 599 755 units in 2024 dipping under the total vehicle production of 1%. The maturity of the country’s automotive industry, its developed logistics infrastructure, and the mix of existing trade agreements with key economic centres and regions, all position South Africa favourably as a potential EV manufacturer.

New energy vehicle sales in South Africa – 2020 to 2024

Source: naamsa/Lightstone Auto

*Including heavy commercial vehicles