The National Automobile Dealers' Association (NADA) and the Southern African Vehicle Rental and Leasing Association (SAVRALA) have signed a Memorandum of Agreement (MOA), marking the formalisation of a relationship that has existed informally for many years.
"There are so many common areas that NADA and SAVRALA focus on, but until now, we’ve tackled them separately. This agreement changes that," says Brandon Cohen, Chairperson of NADA. "By working together, we become stronger in our engagements with key stakeholders such as government and financial institutions. Road safety is a primary concern for both organisations, given that our members are responsible for supplying and using vehicles on South African roads—whether rented, leased or sold.
SAVRALA has always been a key stakeholder in the automotive sector, with its members sourcing vehicles directly from manufacturers and dealer networks. Over the years, NADA and SAVRALA have collaborated on various industry matters, frequently engaging with government, financial institutions and other critical stakeholders. However, their joint efforts have never been formally structured—until now.
"Our members source their vehicles both directly from manufacturers and through the dealer network, so our relationship with NADA has always been key," says Sandile Ntseoane, General Manager of SAVRALA.
"We’ve worked together for many years, sitting on similar platforms and engaging in negotiations with government. But this has always been informal. Now, with a structured and strategic approach, we can formally align on key industry issues and maximise our collective influence. NADA has always been a key strategic partner for SAVRALA, and this formalisation ensures we can work together even more effectively."
The agreement also aligns with the strategic vision of the Retail Motor Industry Organisation (RMI) to lead the sector with a proactive, structured approach. "This is an exciting and long-overdue development," says Ipeleng Mabusela, RMI CEO of Strategy and Corporate Support. "Our engagements last year set the foundation for this structured and formal approach, and from an RMI perspective, this agreement aligns perfectly with our strategy to lead the industry.
From a business perspective, the cooperation agreement makes absolute sense. SAVRALA plays a significant role in the South African economy, and when combined with RMI’s substantial influence in the aftermarket - contributing approximately 2% to GDP - the collective strength of these organisations will provide a more powerful voice in policy discussions.
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The South African automotive industry has gained some breathing space following the latest move by the United States Senate to extend the African Growth and Opportunity Act, or AGOA, to the end of 2028.
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