President Cyril Ramaphosa has expressed strong confidence in South Africa's automotive industry, stating it is making crucial investments to build resilience and lead the transition to green mobility despite mounting global pressures.
In his weekly newsletter this week, Ramaphosa emphasized protecting existing automotive jobs as paramount, particularly with looming US tariffs threatening the sector. He stressed the urgent need to diversify export markets, committing to work with industry players to expand their continental presence and leverage existing trade relationships within the Southern African Development Community (SADC) region.
The sector's economic impact is substantial, supporting more than 115 000 direct manufacturing jobs and over 500 000 positions across the value chain, while contributing approximately 5.3% to the country's GDP. Currently, exports account for around two-thirds of local vehicle production.
However, Ramaphosa acknowledged significant challenges ahead, including new emissions regulations in key markets like the European Union and fresh USA tariffs. The global shift from internal combustion engines toward hybrid and electric vehicles has made green mobility increasingly critical for manufacturers.
The recent launch of BMW's new X3 plug-in hybrid at the company's Rosslyn plant in Tshwane highlighted this transition. South Africa serves as the exclusive global production site for this model, representing what Ramaphosa called "a welcome signal to investors that South Africa remains a favourable place to do business."
Dunlop Tyres South Africa has completed a R1.7 billion investment programme at its uMnambithi (Ladysmith) manufacturing facility, introducing new manufacturing technology and expanding production capabilities at the plant.
Mahindra & Mahindra has unveiled the Scorpio Lifestyler, a midsize lifestyle bakkie derived from the Global Pik Up concept first shown in Cape Town in 2023.
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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You can't buy happiness but you can buy cars and that's kind of the same thing.
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Dunlop Tyres South Africa has completed a R1.7 billion investment programme at its uMnambithi (Ladysmith) manufacturing facility, introducing new manufacturing technology and expanding production capabilities at the plant.
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.
General Motors (GM) has renewed its joint venture with China's SAIC Motor Corp for another 20 years, enabling the United States (US) automaker to use China as an export hub amid rising competition from Chinese brands in and outside their home market.
