South Africa: Where People Defy the Numbers - The Paradox of SA's Automotive Industry

Detractors point out that automotive manufacturing accounts for just 3,2% of South Africa's gross domestic product, and argue that the incentives given to the sector could be better spent. That misses a vital point. Without the motor industry we would not be globally competitive in robotics, mechatronics, programming, logistics and tool making.

It was in 1981 that I started writing about the South African motor industry, as editor of a motor trade publication, MotorWorld. By 1982, I was predicting its demise -- the maths did not work out in terms of the size of the South African market and the volumes being produced.

They still don't. According to Naamsa, the Automotive Business Council (which is now 90 years old), South Africa's share of global vehicle production was 0,65% in 2024, ranking us at number 21. We do better on bakkies and are ranked 15th, with a global market share of 1,05%. Local sales in 2025 were 515,850 units, or 0,56% of the world new vehicle market of 92 million vehicles.

My question then (and now) is why would the managing director and board of the likes of Volkswagen, Mercedes-Benz, Stellantis, Ford or BMW bother to spend any time on such a small market -- to the point of regularly getting on an aeroplane and visiting the facilities?

General Motors management upped and left, and there has been no real Chinese investment despite many promises and concessions by the government and its agencies, so we are left largely with the European manufacturers keeping...

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