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Automotive 2025: Challenges and Innovation
Creamer Media’s ‘Automotive 2025: Challenges and Innovation’ report outlines the current status and outlook of South Africa’s automotive sector, which remains a key contributor to GDP and exports. The report highlights the continued resilience of local manufacturers despite macroeconomic headwinds, including persistent loadshedding, logistics gridlock, and increasing import threats. While vehicle exports reached record levels in 2023, domestic new-vehicle sales continued to contract in 2024. A shift in consumer behaviour toward more affordable models has accelerated the entry and growth of Chinese and Indian brands, contributing to a more competitive landscape.
The report also explores the transition to the new-energy vehicle market, noting progress such as the release of the Electric Vehicles White Paper and new investments in hydrogen and electric vehicle production. However, policy uncertainty and limited local incentives are constraining wider adoption. The manufacturing and investment section covers the significant capital expenditure by major original-equipment manufacturers to modernise facilities and expand model lines, while the components and skills gap sections draw attention to areas needing support to ensure long-term competitiveness.
Published on 16 May 2025.
