Cars.co.za report offers interesting insights
Cars.co.za recently launched Industry Report 2026 at its DealerCon summit, offers insight into the forces shaping South Africa’s vehicle market.
- Dealer News
- 22 September 2026
South Africa has been urged to move quickly to protect and strengthen its automotive manufacturing sector as uncertainty around Volkswagen’s global operations highlights the growing pressure facing carmakers worldwide.
The call follows reports that Volkswagen is examining major restructuring options that could affect tens of thousands of jobs across its international business. Although no formal announcement has been made regarding Volkswagen South Africa, Sonja Boshoff, Chairperson of Parliament’s Select Committee on Economic Development and Trade, says the situation should not be ignored.
Sonja says the developments show that South Africa can no longer assume that long-standing automotive investment will remain secure without a stronger competitive offering. Global manufacturers are reviewing production locations, future model allocations and investment plans as they respond to rising costs, slower demand in some markets, tighter margins on electric vehicles and intensifying competition.
Volkswagen’s challenges are being felt most sharply in Germany, where political leaders, unions and the company are under pressure to find ways of protecting jobs and keeping factories busy. Olaf Lies, the premier of Lower Saxony, has reportedly suggested that Volkswagen should consider building in Germany some models that are currently linked to China, arguing that this could help safeguard employment and support local innovation.
The wider industry is also being reshaped by the rapid rise of Chinese manufacturers. Companies including BYD, Geely, Chery and SAIC have expanded their influence in both China and Europe, forcing established vehicle groups to rethink pricing, production costs and long-term investment decisions.
For South Africa, she says the message is that automotive investment must be actively retained and expanded. The sector plays a major role in the economy, supporting jobs not only in vehicle assembly but also in components, logistics, retail, services and small businesses connected to the motor industry.
Sonja says South Africa needs faster and more practical reforms to improve confidence among investors. These include a more reliable electricity supply, efficient ports and rail networks, clearer policy direction, reduced regulatory obstacles and quicker implementation of programmes designed to support industrial growth.
Cars.co.za recently launched Industry Report 2026 at its DealerCon summit, offers insight into the forces shaping South Africa’s vehicle market.
Nissan has introduced the Tekton, a new compact SUV for the South African market. The model is built on the Renault‑Nissan alliance’s CMF‑B platform and is closely related to the Renault Duster, sharing engines and mechanical components.
At the recent DealerCon 2026, hosted by Cars.co.za automotive excellence was celebrated by honouring top executives in the automotive retails industry.
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