South Africa Automotive Sector Faces Decline Amid Global EV Shift
- Reports
- 4
- Developments
- 3
- Repetition
- 50%
New informationRepeats or wire copies
What happened
Production in South Africa's motor vehicle, parts, and accessories sector declined by 2.5% in 2025 compared with 2024, according to Minister Stella Ndabeni. The industry, which exports about two-thirds of its output, is seeking a place in global electric vehicle (EV) supply chains as international rivals attract investment. President Cyril Ramaphosa signed a law providing a 150% tax deduction to spur EV and hydrogen production starting in March 2026.
Why it matters
The automotive industry is a major industrial sector in South Africa, contributing 23.8% of manufacturing output in 2025 and 5.2% to the country’s gross domestic product in 2025. Industry leaders warn that the country risks losing future vehicle production and investment unless it secures a position in global EV supply chains.
The global auto industry is facing significant headwinds due to market disruption, increasing tariffs, and intense competition.
Who's involved
- South AfricaThe country whose automotive industry is experiencing a decline and seeking EV supply chain integration.
- Ford Motor CompanyAn American multinational automotive company facing risk from global EV supply chain pressures.
- SMESmall and medium-sized enterprises facing mounting pressure due to the overall economic downturn.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- South AfricaSpeculative
The core industrial sector might see its production costs and overall output decline due to economic headwinds and import reliance.
- SMESpeculative
Small and medium-sized enterprises could face increased pressure on their revenue due to the industry's economic downturn.
How it developed
Newest first. Tap a step to see who reported it.- Data released by industry bodies shows annual productivity decline and commentary on operational efficiency issues in South Africa.Sub-event
SA automotive industry seeks global EV supply chain integration, driven by EU standards.1 source
South African auto industry decline linked to economic headwinds and import reliance.1 source
Keep exploring
The entities involved
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South Africa
country in southern Africa
Related events
- Louis Fourie discussed industry challenges currently facing South Africa.
- Trade issues between South Africa and BRICS partners are causing a trade deficit and slow government action on imports, affecting companies like Sappi.
- Poor state asset management is cited as a cause of economic decline in South Africa.
- South Africa and China are both struggling with adequate growth models, leading to authorities suppressing investment and wages.
- Research examines economic conditions in South Africa.