The automotive industry is one of the important sectors for South Africa and accounts for 30.1% and 6.9% of the country’s manufacturing output and GDP respectively. The country has presence from at least 7 vehicle manufactures (BMW, Nissan, Ford Motor Company, Toyota, VW, Daimler), 9 medium and heavy vehicle manufacturers (including Tata, Iveco in Tshwane) and over 300 Tier 1 to Tier 3 suppliers. The country produced over 600 000 complete built units (CBU) in 2017 and expected to reach 1.39 million by 2035, based on the new industry masterplan. Over 120 000 people are directly and indirectly employed by the sector and this figure is expected to double to over 220 000 by 2035. The sector accounts for 16.2% of the country’s overall annual exports with revenue of over R171 billion in 2017.
The European Union and North America are the dominant export markets for the South Africa automotive industry accounting for a combined over 70% of the SA exports buy value in 2017. Germany is the single most important market for the SA exports accounting for 28% by value in the same year.
Tshwane accounts for over 40% of the passenger, medium and vehicles produced in the country, with the production plants for BMW, Nissan, Ford, Tata and Iveco located in the City.
The country’s new automotive Industry masterplan envisages further growth of the industry that will lead to increased investment opportunity from localisation and integration into the global supply chains. Some of the key features of the plan include: