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Industry Study: Auto Manufacturing 2023

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TIPS industry studies aim to provide a comprehensive overview of key trends in leading industries in South Africa. For each industry covered, working papers will be published on basic economic trends, including value added, employment, investment and market structure; trade by major product and country; impact on the environment as well as threats and opportunities arising from the climate crisis; and the implications of emerging technologies. The studies aim to provide background for policymakers and researchers, and to strengthen our understanding of current challenges and opportunities in each industry as a basis for a more strategic response.

The automotive industry is one of South Africa’s core industries, accounting for almost 12.8% of total manufacturing output in 2022. Although considered a marginal player in the global automotive industry, South Africa is Africa’s leading passenger vehicle manufacturer and exporter of vehicles. In 2022, South Africa produced 555 889 units of passenger cars and light commercial vehicles, accounting for 54.4% of Africa’s total vehicle production, although only 0.7% of total global production (OICA, 2023). South African-based vehicle original equipment manufacturers (OEMs) and component suppliers’ manufacture predominately for the export market. Approximately 70% of all vehicles produced in South Africa are exported.

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Additional studies for other industries will be added when finalised