- Government and Industry Collaboration for Automotive Growth: Deputy President Paul Mashatile calls for enhanced cooperation among government, industry leaders, and workers to bolster South Africa’s automotive sector, emphasizing the sector’s significant contribution to GDP and manufacturing output.
- Challenges Facing the Automotive Sector: The sector contends with increased import dependence, production strains, a 30% tariff hike on U.S. exports, and job losses from company closures, raising concerns about employment and economic stability.
- Government Support Measures: The government is promoting employment, education, and entrepreneurship initiatives, while providing investment incentives, local production support, and development programs through entities like the Automotive Industry Development Centre.
Deputy President Paul Mashatile delivered a keynote address at the 2025 NAACAM Show in Nelson Mandela Bay, urging collaboration between government, industry leaders, and workers to grow South Africa’s automotive sector. Speaking at the Boardwalk ICC on 14 August, Mashatile praised NAACAM’s role in promoting localisation and transformation and highlighted the industry’s contribution of 5.2% to GDP and 22.6% of manufacturing output.
He warned of challenges, including rising import dependence, strained production, and a 30% tariff hike on exports to the United States. Mashatile noted that the automotive sector employs 115,000 people, with over 80,000 in components, but job losses remain a concern, especially after 12 company closures affecting 4,000 workers. The sector exported R62.5 billion in 2024 but now faces uncertainty due to external trade pressures.
To address unemployment, now at 33.2%, Mashatile said government is backing public employment programmes, education, and entrepreneurship. Support for the automotive industry includes investment incentives through the Automotive Investment Scheme, local production incentives, and development via the Automotive Industry Development Centre.
The Deputy President emphasised the Automotive Masterplan 2035, which targets 1.4 million vehicle production, 60% local content, 224,000 jobs, and increased Black ownership. He cited future opportunities in electric vehicle components and local procurement valued at R30 billion.
Mashatile also noted recent investments by Shatterprufe and Ebor Automotive Systems in the Eastern Cape. Ebor, a B-BBEE Level 4 company, benefits over 200 employees through an ownership scheme.
He concluded by stressing unity and shared prosperity, urging the industry to embrace inclusive business models and innovation to secure a globally competitive and sustainable future for South Africa.
