Automotive industry in South Africa

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Jetour dealership in Cape Town Jetour Dealership in Plumstead, Cape Town.jpg
Jetour dealership in Cape Town
Hyundai dealership in Cape Town Hyundai Dealership in Plumstead, Cape Town.jpg
Hyundai dealership in Cape Town

South Africa has a well-developed automotive industry, and is the leader in Africa in terms of production volume. The country produces more than half a million automobiles annually, of various types. While domestic development of certain vehicles, like trucks and military vehicles, does exist, most are built under license from major foreign brands.

Contents

South Africa has thriving new and preowned car markets, comprising a variety of competing automotive dealerships, including branded franchises for new vehicles, and private preowned dealerships and dealer groups. Some groups maintain exclusive import rights for certain foreign vehicle brands. Major dealership groups include Motus, ROLA, Hatfield Motor Group, CFAO, Fuzion, and Super Group.

Over 500,000 new passenger vehicles [1] and over 120,000 preowned passenger vehicles [2] are sold in South Africa annually.

The National Automobile Dealers’ Association (NADA) is a professional body representing the interests of automotive dealerships in SA, and is one of eight Constituent Associations of the Retail Motor Industry Organization (RMI). [3] The Independent Dealer Association (IDA) also operates in South Africa, and regulates the conduct of its members. [4]

The automotive industry also involves the operations of numerous large vehicle and general insurance companies, including OUTsurance, Naked, Pineapple, King Price, Santam, and Discovery, as well as quote aggregation website Hippo.

In terms of fuel, major players in South Africa are locally-headquartered Engen (SA's largest petrol station chain) and Sasol, and foreign-owned brands Astron Energy, Shell, and BP. Forecourt chains Total and Puma Energy also have a presence, albeit smaller. PetroSA is the national oil and petrol company of South Africa, and is focused on natural gas extraction and production of synthetic fuels, as well as crude oil extraction. The interests of the industry in SA are represented by the Fuels Industry Association of South Africa (FIASA), of which the aforementioned companies are all members.

In 2024, the average purchase price of a new passenger vehicle in South Africa was around R400,000. In the same year, it was estimated that there were around 1,500 distinct passenger vehicle models for sale in South Africa, 1,082 of which cost over half a million rand. The price of new vehicles increased by an average of 4.7% the first quarter of 2024, with the steepest increases in the hatchback and crossover segments. [5]

As of 2025, Toyota remains the top-selling new passenger vehicle brand in South Africa, with its best-selling model being the Corolla Cross compact SUV, which is manufactured locally. Toyota sells almost double the number of units per month than runner-up Suzuki, whose best-selling model is the Swift hatchback. [1]

Crossovers are the most popular new vehicle segment, accounting for 37.7% of sales, followed by hatchbacks at 36.2%. Luxury cars and sports cars each accounting for just 0.1% of sales. [6]

History

Early days

Automotives first came to South Africa in 1896 when a Benz Velo was imported and it was demonstrated on January 4 of 1897 in Pretoria in front of President Paul Kruger.

The early days of the South African motoring industry were focused on the American brands Ford and Chevrolet. In 1922 Henry Ford visited Port Elizabeth and by 1923 Ford had started the first assembly plant in PE. General Motors joined soon afterwards producing Ceves Buicks Oldsmobiles and Pontiacs.

In the mid-1960s, Ford and GM still controlled over 60% of the local car market with Ford's and Chevrolets dominating until the mid-1950s when the German and British small cars began to impact. In the early 1960s Studebaker became VW set up by managers from Ford PE who went on to develop VW- USA for the German company.

By the late 1960s, Toyota, Datsun, and Mercedes were all developing factories in SA, and British makers were being pushed out. In the late seventies, Sigma Motors had planned to merge with British Leyland, known as Leykor locally - when this merger failed, Leyland had to scramble to create an all-new dealer network in only a month. [7] Leyland's South African presence never recovered.

The apartheid government asked Ford and GM to advise on policy to develop the local automobile component manufacturing industry. Ford and GM engineers asked to include black people in development to address chronic poverty. This was refused. However between Ford, GM and VW the three largest manufacturers (Ford about 28%, GM about 32% and VW about 15%) they accelerated local component development so rapidly that by 1968 that had destroyed Job Reservation policy in the auto industry allowing black people to work in factories previously reserved for whites.[ citation needed ]

After the fuel crisis, the large American cars which had been very popular dropped in sales drastically. By the end of the 1970s, the Mazda 323 and the Volkswagen Golf were the biggest sellers and American-designed cars were no longer regularly available. For a while, the demand for big saloons had been met by assembling the somewhat more compact Australian Fords and Holdens, but these were discontinued in favour of more compact European designs. [8]

1976 showed the worst sales numbers since 1972. [9] Chrysler SA went belly up soon thereafter, merging with Illings (Mazda) to form Sigma. Chrysler had been very successful in the late sixties, with the Valiant range being the most sold passenger car in 1966, 1967, and 1968, but began a serious slide after that. [10] The acquisition of Mitsubishi gave Chrysler a stay of execution but the severe economic climate of the latter half of the 1970s proved too much.

Growth

The automotive industry catered to 303,000 employees in South Africa in 2003, and in 2004 the country exported fully assembled motor vehicles to 53 countries including many developed countries such as Japan, the United States, the United Kingdom, Australia and Germany, with many of the manufacturers based in South Africa now making it their main production base.

In 2004, South Africa was responsible for the manufacture of 84% of all vehicles produced in Africa, 7 million of which are on the South African roads. Also in 2004, the industry made a 6.7% contribution to the GDP of South Africa and 29% of all South African manufacturers made up the country's automotive industry. 2004 also saw 110,000 vehicles exported from South Africa of which 100,000 were passenger vehicles. [11]

In 2007 and next years the automotive industry grew again, producing over 500,000 vehicles annually reaching peak of 616,000 in 2015. While amounting to a small fraction and 22nd place of the global vehicle production of near 100 million, this made great contributions locally, being supremely first in Africa and making up 7.5% of the country's GDP and about 10% of South Africa's manufacturing exports.

In 2010, the National Association of Automobile Manufacturers of South Africa (NAAMSA) reported that new vehicle sales exceeded their initial expectations of 7%, with large local growth allowing it to reach 24%, providing a big boost after the 2008/09 recession. This was evident in 2010 with 271,000 vehicles being exported, more than double what was seen in previous years. [12]

Recent developments

In 2025, there were reported to be a total of 115,000 individuals working in the South African automotive industry, 80,000 of whom were working in component manufacturing. At the time, the industry accounted for 22.6% of South Africa's manufacturing output, and 5.2% of its GDP. It was further reported that in 2024, the component sector exported R62.5 billion worth of goods. [13]

The local automotive sector is guided by the South African Automotive Master Plan 2035 (SAAM), which aims to grow SA vehicle production to 1% of global output (equivalent to a total of 1.4 million vehicles), increase local content to 60%, double employment in the sector to 224,000 employees, and deepen transformation and value addition, with 25% Black-owned involvement at the Tier 2 and Tier 3 component manufacturer level. [13]

In October 2025, Chinese automaker BYD announced that it would begin a massive rollout of its Super e-Platform fast-charge EV chargers across South Africa, starting with unveiling between 200 and 300 chargers in 2026. The new charging stations are capable of BYD's Megawatt Flash Charging, which boosts compatible EVs by 2 kilometers per 1 second of charging, and can recharge up to 400 kilometers in just 5 minutes. [14] [15] [16] [17]

Supporting 10C charging, the chargers are able to charge at over 1,000 volts, with a max output of 1,360 kW. The infrastructure will also more be environmentally-friendly than using the grid, instead making use of solar power and battery energy storage systems for the chargers. [14] [15] [16] [17]

These charging stations are already supported by BYD's Han L and Tang L models, which at the time had already started preorders in China. At the launch event for the new tech, BYD's President and Chairman Wang Chuanfu stated that, "The ultimate solution is to make charging as quick as refueling a gasoline car". [15]

Vehicle sales

According to the South African Automotive Business Council (naamsa), in 2024, total new vehicle sales in the country totaled 515,712, a 3% decrease year-over-year. Vehicle sales by category are as follows: [18]

New vehicle sales in South Africa
Category20202021202220232024
Passenger246,541304,338363,682347,379351,302
Light commercial110,912133,078135,711151,490133,254
Medium commercial6,7357,5208,3088,2527,714
Heavy Trucks, and Buses16,01819,55521,84124,65423,442
Total combined sales380,206464,491529,542531,775515,712

Export sales in 2024 totaled 308,380; a decrease of 22,8% year-over-year. Historical export sales figures are as follows: [18]

Export vehicle sales in South Africa
Category20202021202220232024
Passenger178,788173,773238,631258,266192,542
Light commercial91,942123,667112,312140,529115,192
Trucks and Buses557579841841646
Total export sales271,287298,019351,784399,594308,380

Top-selling brands

As of April 2025, the top-selling new vehicle brand in South Africa is Toyota, by a significant margin. In that month, Toyota was selling almost double the number of vehicles as runner-up Suzuki. Of the 42,401 new vehicles sold in South Africa in April 2025 (an increase of 11.9% year-over-year), Toyota had around a quarter (24%) of the market share. Sales figures by brand for May 2025 are in the table below. [1]

10 best-selling new passenger vehicle brands in South Africa
ManufacturerApril 2025
Toyota 10,363
Suzuki 5,977
Volkswagen Group (combined)3,973
Hyundai 3,007
Ford 2,398
GWM 1,943
Chery 1,852
Isuzu 1,383
Renault 1,281
Mahindra 1,278
Total sales42,401

Top-selling new models

The Toyota Corolla Cross is SA's best-selling passenger vehicle, by a large margin Toyota Corolla Cross ZVG10 FL 1.8 V HEV Celestite Gray Metallic.jpg
The Toyota Corolla Cross is SA's best-selling passenger vehicle, by a large margin

In August 2025, the best-selling new passenger vehicle in South Africa was the Toyota Corolla Cross, which is competitively-priced in part due to its local manufacture. The Corolla Cross compact SUV has moved quickly up the top-10 list since it launched in SA. The 3 best-selling passenger vehicles in South Africa accounted for almost half (47%) of the sales in the top-10 list.

With 1st, 7th, and 10th place in the same month, Toyota vehicles accounted for 31% of total top-10 sales. The best-selling passenger vehicles are in the table below. [2]

10 best-selling new passenger vehicle models in South Africa
VehicleAugust 2025
Toyota Corolla Cross 2,743
Volkswagen Polo Vivo 2,314
Suzuki Swift 2,101
Chery Tiggo 4 Pro 1,339
Hyundai Grand i10 1,270
Suzuki Fronx 1,210
Toyota Starlet 1,160
Haval Jolion 1,123
Suzuki Ertiga 1,055
Toyota Vitz 885
Total sales15,200

Top-selling preowned vehicles

In August 2025, around 10,000 preowned passenger vehicles were sold in South Africa. The best-selling amongst those was the Ford Ranger pickup ("bakkie"), by a notable margin. Toyota performed strongly once again, holding 2nd, 5th, 9th, and 10th places in the top-10 list. The average price of a preowned vehicle sold in that month, amongst the top-10, was R339,422.

In contrast to new passenger vehicle sales, cars in the preowned list trend larger, potentially denoting a preference for larger vehicles in the South African market, but a desire or necessity for many to wait for prices to reduce from retail to preowned values before purchasing. Sales figures for the top-selling preowned passenger vehicles in SA are below. [19]

10 best-selling preowned passenger vehicle models in South Africa
VehicleAugust 2025
Ford Ranger 2,025
Toyota Hilux 1,636
VW Polo 1,400
VW Polo Vivo 1,322
Toyota Fortuner 815
Suzuki Swift 690
Isuzu D-Max 578
Hyundai Grand i10 546
Toyota Starlet 508
Toyota Corolla Cross 486
Total sales10,006

Top-selling alternative fuel vehicles

BMW iX1 EV at a charging station in Constantia, Cape Town BMW iX1 EV in Constantia, Cape Town.jpg
BMW iX1 EV at a charging station in Constantia, Cape Town
BYD ATTO 3 EV in Cape Town BYD ATTO 3 EV in Constantia, Cape Town.jpg
BYD ATTO 3 EV in Cape Town

The market for hybrids and EVs in South Africa is small, but growing, as is the country's charging infrastructure. Notably though, 36% of new Toyota Corolla Cross models sold are hybrids. The Corolla Cross has 74% of the South African new hybrid vehicle market share. Sales figures for the top-selling hybrids, plug-in hybrids (PHEVs), and EVs in SA are below. [6]

Best-selling new hybrid (mild and full) passenger vehicle models in South Africa
VehicleAugust 2025
Toyota Corolla Cross 1,001
Chery Tiggo 4 Cross 122
Haval Jolion 57
Toyota RAV4 52
Haval H6 35
Total sales1,357
Best-selling new plug-in hybrid passenger vehicle (PHEV) models in South Africa
VehicleAugust 2025
Haval H6 70
Chery Tiggo 7 50
Jaecoo J7 49
Chery Tiggo 8 33
Omoda C9 32
Total sales318
Best-selling new electric passenger vehicle (EV) models in South Africa
VehicleAugust 2025
Mercedes-Benz EQE 10
Volvo EX30 8
Volvo XC40 7
Mercedes-Benz EQA 5
Total sales60

Preowned hybrids (combined)

During the first 6 months of 2025, major South African automotive sales site, AutoTrader, 1,504 preowned hybrid passenger vehicles were sold. Among those, 1,158 (%) were Toyotas (of which the Corolla Cross was the top seller by a significant margin). A further 45 were Lexuses.

The average sold price of a used hybrid car on the website during the same period was R696,169, representing a 3% increase from the R678,669 average a year before. All vehicles in the list were either 2024 or 2023 models (i.e., under 2 years old). The top-selling preowned hybrid passenger vehicles on AutoTrader SA, for the first 6 months of 2025, are in the table below. [20]

10 best-selling preowned hybrid passenger vehicle models in South Africa
ManufacturerJanuary through June 2025
Toyota Corolla Cross 700
Toyota RAV4 177
Toyota Hilux 120
Haval H6 107
Toyota Corolla 96
Haval Jolion 80
Toyota Fortuner 65
GWM Tank 300 62
Volvo XC90 52
Lexus NX 45
Total sales1,504

South Africa has numerous non-manufacturing automotive companies, including:

Petrol stations

There are 4,000 petrol stations across South Africa, run by multiple competing local and foreign companies, some of which are also involved in petroleum refinement and chemical manufacturing in the country. [21] [22]

Major companies operating retail petrol stations in South Africa are:

Local companies

Foreign companies

Other operators

PetroSA is the national oil and fuel company of South Africa, and is focused on natural gas extraction and production of synthetic fuels, as well as crude oil extraction.

The country has two crude oil refineries in operation. The larger of the two is the inland Natref Refinery, located in Sasolburg, which is a joint venture between Sasol and UK-based Prax Group. The other is the Astron Energy Refinery in Cape Town, which is wholly owned by Astron Energy.

The interests of the industry in SA are represented by the Fuels Industry Association of South Africa (FIASA), of which the aforementioned companies are all members.

EV charging

At-home charging

At-home alternating current (AC) charging can be done using two methods; standard plug sockets or dedicated, wall-mounted chargers (for faster charging speeds).

SA operates a 230V electricity network, and regular outlets are limited to 16A, as per SANS-164 and newer SANS 164-2 standards.

For a regular power outlet, charging is therefore limited to 3.7 kW (with the exact number depending on the amperage of the socket).

Dedicated at-home EV chargers are available locally with speeds ranging from 7.4 kW to 22 kW. These require the installation of a dedicated a connection supporting over 16A of current (i.e., an "industrial outlet"). [23]

Public charging infrastructure

South Africa has a small, but growing EV charging station network. There is no direct government infrastructure spending on EV charging, and SA therefore has a patchwork of private charging sites. Investment in infrastructure is increasing.

Numerous proof of concept high-capacity DC chargers are installed at various sites across SA, including the three 400 kW chargers at Zero Carbon Charge's N12 North West facility, the 200 kW station at the Mall of Africa in Midrand, and the 150 kW one at Canal Walk in Cape Town.

The cost of installing a charging station is estimated to be between R500,0000 and R2 million. To reach profitability, SA will need around 100,000 EVs on the road. [24]

As of 2025, there are around 3,500 new EVs sold per year in South Africa. Sales are expected to grow steadily, as new models are introduced into the market. At the same time, the industry was estimated to already be worth R2.8 billion. [24]

The country's charging network comprises, among other initiatives, the following:

Manufacturing

South African factories have built motor vehicles and light truck models since the 1920s. Manufacturers have historically been concentrated in the provinces of the Eastern Cape, Gauteng, and KwaZulu-Natal.

The modern automotive industry in South Africa was launched in 1995, and has since provided a large number of exports to countries around the world. Over the years, numerous global automotive manufacturers have granted production licenses to South African factories. Companies producing in South Africa can take advantage of low production costs, as well as access to new markets as a result of trade agreements, such as those established with the European Union (EU) and the Southern African Development Community (SADC). [11]

Large component manufacturers with bases in the country include Arvin Exhaust, Bloxwitch, Corning, and Senior Flexonics. There are also around 200 automotive component manufacturers in South Africa, and more than 150 others that supply the industry on a non-exclusive basis.

The Department of Trade and Industry's Motor Industry Development Programme (MIDP), which ran from 1995 to 2012, provided a major boost to auto manufacturing in South Africa. [29] Its successor was the Automotive Production and Development Programme (APDP). [30] [31]

BAIC

Beijing Automotive Group developed a factory in 2018 outside Gqeberha. The facility claims a production capacity of 50,000 units per annum. As of July 2024, no vehicles are in full production, with the facility running a skeleton staff, although it plans to fully assemble the Beijing X55 locally, and begin constructing the Foton Tunland G7 from 2027. [32] [33]

BMW

BMW's Rosslyn Plant in Gauteng was founded in 1968 and plays an important role in the production of equipment used in vehicles [34] .

In 2023, BMW invested R4.2 billion to prepare for the production of the X3 Hybrid [35] .

FIAT / Stellantis

From 1948, Car Distributors Assembly Ltd. started to assemble CKD FIAT vehicles on a contractor basis. In 1962 FIAT decided to leave CDA in East London and move their production to MA (Motor Assemblies Ltd). Their new Managing Director had big plans for establishing themselves firmly in SA, and that the then current 1100, 1500 and 2300 models justified this view.

Soon after this change, assembly was also to be started at MA for Volvo and Lancia [36] . FIAT involvement with Motor Assemblies’s local content programme will assisted considerably with their Argentinean experience permitted them to take a practical engineering-based italian approach. After Toyota's acquisition of MA, FIAT built its own factory in Rosslyn, opened in 1968 and closed in 1978 due to apartheid.

FIAT, which became Stellantis in 2021, began construction of a new plant in Coega in 2024, and production of the Peugeot Landtrek, and possibly the new FIAT Strada, is scheduled to begin in 2026. [37] [38] [39]

Ford

Ford has an assembly plant in Silverton and an engine plant in Gqeberha. In December 2021 it announced a R600 million rand investment for building engines to be used by the new Ford Ranger, in addition to a previously announced R15.8 billion investment for the Silverton assembly plant in Tshwane. [40] The Volkswagen Amarok is also assembled at the plant. [37]

In 2023, Ford announced a R5.3 billion investment in its Silverton factory, for the production of the Ford Ranger Plug-in Hybrid Electric Vehicle (PHEV). The upgrade increased the plant's capacity to 720 vehicles per day. [41] The Ranger is exported to markets including Australia, New Zealand, and the United Kingdom. [42]

Isuzu

Isuzu has a plant in Gqeberha where it produces the Isuzu D-Max. [43] In 2019, it invested R1.2 billion as part of its preparation to manufacture the seventh-generation D-Max. [44]

Mahindra

Mahindra opened a plant in 2018 in Durban assembling the Mahindra Pik Up. [45] In 2025, it expanded capacity from 900 to 1,500 vehicles a month. [46]

MAN

MAN has been present in Africa since 1968. It maintains two plants and a spares depot and sells almost entirely in the Southern Africa markets. [34]

Mercedes

From 1954, Car Distributors Assembly Ltd. started to assemble CKD Mercedes vehicles on a contractor basis. Daimler-Benz AG acquired 50.1 percent of United Cars and Diesel Distributors in 1984 which became Mercedes-Benz of South Africa. [47] It produced 55,900 vehicles in 2010, and in the same year the local market saw Mercedes-Benz sell 25,400 cars and 6,100 trucks. [34]

Mercedes produced 70,000 vehicles at the plant in 2024, but cut a shift and reduced workers at the plant later that year. Many of the vehicles produced at the plant are exported to the United States, and demand is expected to drop after US President Trump unilaterally introduced a 30% tariff rate on South African imports in 2025. [46]

Nissan

Nissan has a manufacturing plant in Rosslyn, Gauteng, where it produces the Navara pickup truck, NP200, and NP300. Production volumes are around 65,000 vehicles per year. [48] The company invested R3 billion in 2021 to upgrade the plant, which created 1,200 jobs. Nissan announced further planned investments in 2024, to support its growth strategy in Africa. [49]

In 2025, Nissan announced the possible closure of the plant, along with six others outside South Africa. [50]

Toyota

Toyota's plant in Prospecton, KZN builds the Toyota Corolla Cross (SA's best-selling vehicle as of 2025), Toyota Hilux (which is exported to Europe as well as sold locally), Toyota Fortuner, Toyota Corolla (previous generation, as the "Corolla Quest"), and Toyota Hiace Ses’fikile. [51] The company operates in South Africa as Toyota South Africa Motors (TSAM), a wholly owned subsidiary of the Japanese auto group.

Volkswagen

South Africa is the world's only manufacturer of the Volkswagen Polo Volkswagen Polo VI (2021) IMG 5322.jpg
South Africa is the world's only manufacturer of the Volkswagen Polo

Volkswagen has had a factory in Kariega in the Eastern Cape since the early 1950s, where it produces the Volkswagen Polo and Volkswagen Polo Vivo. [37] As of 2024, the plant is the sole supplier worldwide of the Polo range. [52]

In April 2024, Volkswagen announced a R4 billion investment in its Kariega plant. The upgrades will be used to add a third model to its output, the Volkswagen Tera SUV, to go with the Polo and Polo Vivo already in production. [53] [54]

For many years, Volkswagen Group (all brands under the group's umbrella combined) was the second-highest selling brand in South Africa. In January 2025 it was surpassed by Suzuki. [55]

Volvo Trucks

Volvo Trucks has a plant in Durban where it produces the Volvo FH. [56]

Quality and productivity

Quality

Since around 7% of South Africa's economic output is attributed to the automotive industry, it is understandable that the government and companies within South Africa have been trying to encourage greater quality and greater productivity. [57]

The government has been using stricter controls as a way to improve quality. This seems to be working as large improvements in quality have been achieved, and the industry as a whole is more investable to foreign countries. The goal is to achieve production quality equal to that of manufacturers with the highest standards in the automotive industry. [58]

With the quality of cars manufactured in South Africa reaching comparable levels to those manufactured in western Europe, exports are increasing. Production has been down, but quality has gone up and is yielding more profit.

Productivity

While labour productivity in the sector increased by 37% from 1993 to 2001, companies still have concerns about the productivity levels they can achieve in the country. Recent low productivity levels have been attributed to management. Both inadequate management and low trust in management have contributed to a lull and decline in productivity. [59]

Labour productivity and transportation are the two largest problems in the South African automotive industry.

South Africa has multiple options for nurturing its automotive industry and improving productivity through regulation or through investment in automation or through other creative ideas. [60]

Civil cars
Sports cars
Other vehicles

Government programs

Regulations for local content requirements first appeared in the 1960s and were quite strict, and led to a limited number of cars being available to South African motorists. Beginning in the late 1960s, engines had to be built locally for the car to be considered a local product.

Phase III of the requirements, for instance, was planned for introduction in the 1970s and required local content to reach 70 percent of a vehicle's total weight. Manufacturers also received tax rebates for additional local content. Early in the program, models were often sold as "declared manufactured", but the government gradually began enforcing the standards and imposing penalties. [61]

The South African government has provided substantial support for the automotive industry in the past 20 years and is still identifying it as a key growth sector. In a Department of Trade and Industry (dti) Budget Vote Address delivered in July 2014, Trade Minister Rob Davies said that “given that automotive and component manufacturing comprises 30% of our industrial sector, with strong linkages to other manufacturing sub-sectors, the impact of such investment on our domestic economy is significant.” [62]

The Department of Trade and Industry has provided a series of programs in order to assist the sector. The first of the programs—the Motor Industry Development Programme (MIDP)—was introduced in 1995. The program had the following key objectives:

The program is considered a great success. Under the MIDP, the sector has been exhibiting significant growth – it almost doubled in size since 1994.

Its successor is the Automotive Production and Development Programme (APDP), which was implemented on January 1, 2013. The APDP's main goal is to simultaneously stimulate the expansion of local production to 1.2 million vehicles a year by 2020 and increase significantly the local content. The intention is to achieve this through investments, unlike the MIDP which relied mainly on exports. According to the National Association of Automotive Component and Allied Manufacturers (NAACAM), the program has four pillars:

The fourth pillar is not a new initiative but a revised incentive. The Automotive Investment Scheme (AIS) was first introduced in 2010/2011, and, since then, incentives in the public sector have amounted to R6.3 billion and supported investments worth R23 billion by original equipment manufacturers in the automotive sector.

Electric vehicles

In October 2021, South African President Cyril Ramaphosa announced that the country would prioritize a shift to focusing on EV manufacturing. [64]

As of 2024, South Africa has a small, growing electric vehicle market, but as yet, none are produced locally. Electric vehicles are increasing in popularity, as fuel prices have increased, and charging networks have expanded.

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