Automotive aftermarket industry trends global report 2026. South africa is an exporter of auto components, particularly catalytic converters and leather upholstery. Many of the major multinational firms use south africa to source components and assemble vehicles for the local and international markets. The automotive industry is a crucial job creator in the countrys economy and makes a significant contribution to the south african economy as a whole in terms of gdp. Automotive production does and has taken place in africa. Trends driving the african automotive industry in 2016 and. Amidst this landscape, automotive organisations must conduct their business, while at the same time adapting to new regulations, reducing costs, managing capacity and inventory, and controlling healthcare and compensation costs. The automotive industry in south africa is a success story owing to the partnership between government and the sector to develop the industry. Automotive industry in the global automotive industry, opportunities and risks are everywhere, but profitable growth is becoming more difficult to achieve. The automotive industry is south africas leading manufacturing sector and contributes approximately 4. Toyota, volkswagen, and ford have all grown their investment in south africas automotive sector, expanding their operational. Indeed, south africa exports a far greater proportion of its automobile production than china, india, or brazil. Potential and challenges anthony black, brian makundi, and thomas mclennan1 jel.
The automotive industry in south africa provided by taiwan trade center, johannesburg the automotive industry in south africa is represented by various associations in the manufacturing and retail side, namely the national association of automobile. A report of the south african automotive masterplan project. The automotive production and development programme. Major industries in south africa types information. The south african automotive industry september 2010 roger pitot. The industry employs around 120,000 people in vehicle and component production and witnesses an annual investment of more than r12 billion. Get more details on this report request free sample pdf. Deloitte africa automotive insights navigating the african. The automotive industry in each of these countries is at. Nevertheless, in future, south africas automotive retailers may eventually be in the position to change their approach to markets by applying the same or different control mechanisms to change the strategy and contractual agreement they have with a manufacturer or particular oem. Grow south african vehicle production to 1% of global output.
South africas manufacturing industry south african. The apdp will extend support to the south african automotive industry until 2020. This is one of the fastgrowing industries in south africa, these industries focus on the production of various chemicals, clothing materials, spare parts for various automobile, insecticides, electronics, footwear, and. Strengthening the local automotive industry deloitte. What is clear from the image above is the fact that the wage rate inflation growth in south africas manufacturing industry has been declining significantly over the last couple of years, and at its current year on year rate of 5. South africa automotive, car, vehicle analysis and data. It is meant to provide the foundation on which the countrys post2020 policy, as announced by minister rob davies in november 2018, is created. South africas automotive industry masterplan to 2035. South africa automotive industry analysis, data and forecasts from the eiu to support industry executives decisionmaking. Pdf developing a south african automotive masterplan to 2035 in. Ethiopia has been among africa s most impressive growth performers over the past decade averaging 10. The south african automotive industry accounts for about 10% of south africas manufacturing exports, contributes 7.
The south african automotive industry is beset with numerous. Home to an estimated 170 million people, over 40 million of who are in the growing middle class, the continents largest. Justin barnes ba hons, msocsci, phd natal anthony black ba uct, ba hons sussex, msocsci natal, phd uct douglas comrie beng ind, mba usb. The south african automotive masterplan as presented in this report is intentionally aspirational. Includes list of automotive dealers in africa, auto parts dealers in africa. See and search our comprehensive research from north and latin america, the caribbean, africa, europe and the middle east. Home to an estimated 170 million people, over 40 million of who are in the growing middle class, the continents largest economy is increasingly seen as an attractive destination for investors across all sectors. What percentage of the full south african gross domestic product is made up by. The south african automotive industry employed around 110 000 people directly and contributed 6. No other industry is making the transformation to industry 4. Africa in recent decades and briefly explores the various industrialisation options.
Ambe and others published south african automotive industry. Nigeria has the potential to become the hub of africas automotive industry. Automotive industry key to future of south africas. But while possibilities are plentiful, profitable growth is becoming more difficult to achieve and challenges from the supply chain to the retail environment. The south african department of trade and industry the dti. An overview of the south african automotive industry. Ethiopia, kenya and nigeria 3 foreword the deloitte global automotive team has a leading presence in the automotive industry across the world, providing services to 80% of the fortune 500 automotive companies. Creamer medias automotive 2019 report examines the current market conditions in south africas automotive industry, including local. The automotive sector in south africa is the mainstay of the national industrial base and accounts for 6.
The automotive industry is a relatively sophisticated. Automotive manufacturing in south africa industry profile provides topline qualitative and quantitative summary information including. South africas automotive industry is a global, turbocharged engine for the manufacture and export of vehicles and components. Developing a south african automotive masterplan to 2035 in the context of global value chain drivers. Downloading database of importers of auto parts in africa. Naamsa represents the collective,noncompetitive interests of the new motor vehicle manufacturing industry in south africa and comprises twentytwo companies involved in the production of cars and commercial vehicles. South africa improved its global ranking to 22nd 24th in 2014 in the world with a production market share of 0. Trends and challenges in the supply chain find, read and. The south african government provided support to its automotive industry via the motor industry development programme midp since 1995. Dublinbusiness wirethe 2018 south africa automotive industry emerging dynamics and future of south africa passenger cars and commercial vehicles report has been added to. The south african automotive industry will not realise its critical objective of achieving 1. South africa has an active automotive sector which contributes to around 6. The potential of manufacturing and industrialization in africa. Morocco has become an auto hub, surpassing south africa as the leading automotive producer.
Africa automotive market growth, statistics, industry. Creamer medias automotive 2019 report examines the current market conditions in south africas automotive industry, including local demand, trade and investment, competitiveness and sector support, transformation, environmental considerations, and the outlook for the sector. South africa s automotive industry is a global, turbocharged engine for the manufacture and export of vehicles and components. Trade and industry minister dr rob davies has stressed that south africa does not have the luxury to stop supporting its automotive sector, as has been the case in australia, where the industry. Global automotive consumer study exploring consumers. To improve sa automotive industrys international competitiveness to. Africa automotiveinsightsethiopiakenyanigeriaapr16. It then goes on to use the example of the automotive industry to examine both the possibilities and pitfalls facing the development of this important sector.
South africa an already relatively welldeveloped autos market in the region will be the next frontier for growth for the automotive industry, with a lens on three countries, namely ethiopia, kenya and nigeria. Deloitte africa automotive insights navigating the african automotive sector. Pdf learning, upgrading, and innovation in the south african. The midp ended in 2012, and is being replaced by the automotive production and development programme apdp from 20. From 19952012, it was subject to the motor industry development programme midp which has perhaps been the most significant industrial policy intervention since 1994, both. The automotive industry is the largest manufacturing sector in the sa economy and in 2014 the industry contributed approximately 7. Automotive aftermarket, frequently referred to as secondary market, manufactures and supplies spare parts, accessories and other components for various automobiles. As the largest manufacturing sector in south africas economy, vehicle and. Felu, declare that i am the author of the masters thesis entitled the automotive industry in the republic of south africa. The industry is nearly 100 years old in south africa.
Advisory and tax services are provided to the majority of the major leading automotive companies in south africa. The automotive industry is one of south africas largest manufacturing sectors and has a long history of government support. Given economies of scale in the auto industry, south africas domestic market, while significant, is not large enough for production there to be. When it comes to africas automotive industry, morocco and south africa get all the headlines, but other countries are now attracting the attention of. The south african automotive industry employed around 110 000 people directly and. The south african automotive retail industry is the end of. This discussion document examines structural changes in the south african motor trade industry between 2006 and 2015. Pdf developing a south african automotive masterplan to. Trends driving the african automotive industry in 2016 and 2017. Complex value chains, justintime production and networked manufacturing demand intelligent components, the right handling technologies and flexible, integrated solutions using pneumatics, electrical systems or a mix of both technologies. However, it is not located in all economies and is not often associated with african economies something that is about to change. Edd parliamentary portfolio committee presentation on sa. Africas next automotive hub pwc nigeria automotive industry.
In the global automotive industry, opportunities and risks are everywhere, in emerging and mature markets alike. As the largest manufacturing sector in south africa s economy, vehicle and component production accounted for 33% of south africa s manufacturing output in 2016, while the contribution of the broader automotive industry to gdp was 7. Industrialisation, africa, regional integration, automotive industry 1 policy research in international services and manufacturing, and school of economics, university of cape town all authors. Clients receive indepth industry knowledge and expertise as a result of our experience with these leading companies which ensure our experts are able to add value immediately. The africa automotive directory is a list of importers in africa, buyers in africa of automobile spare parts and accessories. Under ssas structural adjustment programmes of the 1980s, protection of the infant automotive industries in.
The first fundamental market change relates to south africas future growth. The automotive manufacturing industry is a key component of modern manufacturing in an economy. South african automotive industry performance therefore resembles that of a developed economy, as opposed to a developing economy with low levels of vehicle ownership, and a growing population. See our granular analysis from around the world and access fitch solutions reports and insights by region and country. The motor trade industry in south africa has seen a transition over the past few years, driven by various factors that have contributed to changes in the south african economy. This report examines the state of south africas automotive sector and the changes taking place in the industry in the aftermath of the global economic crisis. Annual production in 2007 was 535,000 vehicles, out of a global production of 73 million units in the same year. The social and economic contribution of the automotive industry to. Limited in the south, anambra motor manufacturing company. Economic contribution the automotive industry is the largest manufacturing sector in the sa economy and in 2014 the wider industry contributed approximately. The automotive and components industry is well placed for investment opportunities. Automotive manufacturing in south africa automotive.
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