The growing uncertainty regarding the future of South Africa’s automotive manufacturing sector is serious cause for concern and raises the question of whether government is deliberately dragging its feet with making critical policy decisions, or simply lacks the capacity to act timeously.
The automotive manufacturing sector remains one of South Africa’s most important industries. It contributes 22,6% to the country’s total manufacturing output, provides more than 115 000 direct job opportunities and supports approximately 500 000 positions in the value chain.
In addition, nearly 70% of locally manufactured vehicles are exported, making a significant contribution to the country’s export earnings.
Despite its significant role, government is slow to provide clarity on the sector’s future, while new challenges are quickly emerging. The rise of so-called “WICKD” production, where complete vehicle parts are imported and only the final assembly is done locally, poses a serious threat to local component manufacturing, job creation and technological development.
This uncertainty, combined with poor infrastructure, unreliable electricity supply, logistical problems, high crime levels and rising operating costs, is accelerating South Africa’s de-industrialisation. Meanwhile, government’s industrial policy is failing to keep up with rapid global changes, and competing countries are aggressively investing in and safeguarding their own automotive sectors.
The fact that 2026 is regarded as a make-or-break year for the sector underscores the urgency of the situation. If government does not act quickly and decisively, South Africa risks losing further investment, thousands of jobs and its position as Africa’s leading automotive manufacturing hub.
South Africa urgently needs a clear, competitive and sustainable automotive manufacturing policy that prioritises local manufacturing, technology development and job creation.
If government does not possess the political will needed to take these decisions, it will not only have a detrimental impact on the automotive sector, but will also seriously affect South Africa’s economic future and industrial capacity in general.
Freedom Front Plus Electoral Representation: The FF Plus aims to represent the interests of the Afrikaner community.
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