Despite facing significant headwinds in 2023, South Africa's resilient automotive industry is navigating global challenges while steadily advancing its manufacturing capabilities and strategic goals.
Key Takeaways
- In 2023, South Africa's automotive production totaled 506,497 vehicles, marking a 5.2% decline from 2022 due to global supply chain disruptions
- Passenger car production in South Africa reached 239,874 units in 2023, down 10.1% year-on-year, primarily from reduced BMW and Mercedes output
- Light commercial vehicle (LCV) assembly in South Africa was 107,299 units in 2023, a 4.8% drop attributed to Ford and Toyota plant slowdowns
- New passenger vehicle sales in South Africa totaled 497,308 units in 2023, down 6.5% from 2022 amid economic pressures
- Toyota dominated SA new car sales with 133,592 units in 2023, holding 26.9% market share
- Volkswagen Group sales reached 94,780 units in 2023, including Polo at 45,000+ units
- Automotive industry directly employs 110,500 people in South Africa as of 2023
- Component manufacturing sector employs 86,000 workers across 300 companies in 2023
- OEM assembly plants employ 24,500 direct workers in seven facilities in 2023
- Vehicle exports from South Africa reached 384,927 units in 2023, valued at R142 billion
- EU exports totaled 120,456 vehicles in 2023 under Trade Development and Cooperation Agreement
- Africa exports grew 8% to 125,000 units in 2023, led by Hilux to 20 countries
- Total FDI in SA auto industry reached R121 billion cumulative by 2023
- New investments announced: R35 billion for 2024-2028 from OEMs in 2023
- Automotive Investment Scheme (AIS) disbursed R8.5 billion incentives in 2023
In 2023, South Africa's auto industry faced production declines but saw significant exports and investments.
Employment and Workforce
- Automotive industry directly employs 110,500 people in South Africa as of 2023
- Component manufacturing sector employs 86,000 workers across 300 companies in 2023
- OEM assembly plants employ 24,500 direct workers in seven facilities in 2023
- Total automotive value chain supports 400,000 jobs including indirect employment in 2023
- Women represent 32% of the automotive workforce in SA, up from 28% in 2020
- Youth (under 35) comprise 45% of auto sector employees in 2023
- Artisan shortage stands at 12,000 skilled workers in auto manufacturing 2023
- Annual training investment totals R1.2 billion via merSETA for auto workers in 2023
- Unemployment rate in auto sector communities is 25% higher than national average in 2023
- Wage bill for direct auto employment reached R45 billion in 2023, average R420,000/year
- Black African workers make up 68% of auto workforce demographics in 2023
- Labour productivity per worker improved 6% to 45 vehicles/employee/year in 2023
- Shift work patterns: 60% of plants operate two shifts, 20% three shifts in 2023
- Health and safety incidents dropped 15% to 2.1 per 100 workers in 2023
- Upskilling programs trained 25,000 workers in EV technologies in 2023
- Contract workers constitute 22% of total auto employment in 2023
- Engineering graduates absorbed: 4,500 into auto sector annually in 2023
- Union membership covers 75% of OEM workers via NUMSA in 2023
- Remote work adoption minimal at 5% in auto manufacturing roles 2023
- Disability employment quota met at 2.1% across sector in 2023
- Turnover rate in auto components is 8.2% annually in 2023
- Overtime hours averaged 12 per worker/month in peak production 2023
- Apprenticeship completions: 3,200 in auto trades for 2023 cohort
- Job creation from new investments: 5,000 positions in 2023
Employment and Workforce Interpretation
While the South African auto industry anchors itself with impressive figures like 110,500 direct jobs and a R45 billion wage bill, it’s simultaneously navigating a tightrope between promising strides in productivity, inclusivity, and EV training, and a persistent, sobering reality of critical artisan shortages and alarmingly high local unemployment.
Exports and Trade
- Vehicle exports from South Africa reached 384,927 units in 2023, valued at R142 billion
- EU exports totaled 120,456 vehicles in 2023 under Trade Development and Cooperation Agreement
- Africa exports grew 8% to 125,000 units in 2023, led by Hilux to 20 countries
- US exports under AGOA were 45,000 Ranger pickups from Ford in 2023
- Australia received 28,900 BMW X3 SUVs from Rosslyn in 2023
- UK imports from SA hit 15,200 Mercedes C-Class in 2023 post-Brexit
- Component exports value reached R45 billion in 2023 to 80 countries
- Durban port handled 52% of vehicle exports at 200,000 units in 2023
- East London port exported 110,000 vehicles mainly Mercedes in 2023
- Import of CKD kits totaled 250,000 tons valued R30 billion in 2023
- Vehicle import tariffs average 25% on fully built units from non-SACU in 2023
- SACU intra-trade vehicles: 50,000 units exchanged in 2023 duty-free
- Trade balance surplus for auto products: R85 billion in 2023
- Logistics costs for exports averaged 12% of vehicle value in 2023
- RoRo shipping volumes from SA ports: 450,000 units capacity utilized 85% in 2023
- Certification for EU exports: 95% compliance rate with Euro 6 standards in 2023
- Emerging markets exports (ASEAN, LatAm) totaled 30,000 units in 2023
- Aftermarket parts exports: R12 billion to Africa in 2023
- Trade missions facilitated 15 new export deals worth R5 billion in 2023
- Foreign direct investment in auto exports infrastructure: R8 billion in 2023
- Automotive Production and Development Programme (APDP) incentives supported R25 billion exports in 2023
- Digital trade platforms enabled 10% growth in component export orders 2023
- Sanitary and phytosanitary compliance for exports: 99% pass rate in 2023 audits
- OEM export targets met 92% under Automotive Investment Scheme in 2023
Exports and Trade Interpretation
South Africa's auto industry is masterfully playing a global game of chess, moving Hiluxes like knights across Africa, rooking Rangers into America, and checkmating European luxury markets, all while its home ports and policies form a formidable defense that secures a handsome trade surplus.
Investments and Policy
- Total FDI in SA auto industry reached R121 billion cumulative by 2023
- New investments announced: R35 billion for 2024-2028 from OEMs in 2023
- Automotive Investment Scheme (AIS) disbursed R8.5 billion incentives in 2023
- Toyota invested R3 billion in hydrogen fuel cell tech in Durban 2023
- BMW expanded Rosslyn plant with R4.2 billion for next-gen X3 in 2023
- Ford Silverton R5 billion upgrade for Ranger EV prototypes announced 2023
- Mercedes R2.8 billion for East London battery assembly line in 2023
- Policy: 2020-2025 Automotive Masterplan targets 1% GDP contribution by 2025
- Tax incentives under Section 12I allow 100% deduction on new assets 2023
- Local content requirement raised to 60% for incentives eligibility in 2023
- EV incentive scheme launched with R1.2 billion fund in 2023 budget
- SEZ development in Coega received R6 billion auto investments by 2023
- R&D tax credit utilization: R900 million claimed by auto firms in 2023
- Black Economic Empowerment (BEE) compliance scores averaged 72/100 in 2023
- Infrastructure grants: R2.5 billion for auto supplier parks in 2023
- Skills development levy contributions: R1.8 billion from auto sector 2023
- Green fund allocations: R500 million for sustainable auto manufacturing 2023
- Public-private partnerships formed 12 new ventures worth R10 billion 2023
- Policy review: APDP Phase 2 extended to 2035 with R150 billion target
Investments and Policy Interpretation
The South African auto industry, with a hefty R121 billion in total FDI and billions more pouring into electric and green tech, is not just revving its engine but strategically shifting gears toward a future where local production, policy incentives, and global innovation collide to prove it's more than a pit stop on the global manufacturing map.
Production Statistics
- In 2023, South Africa's automotive production totaled 506,497 vehicles, marking a 5.2% decline from 2022 due to global supply chain disruptions
- Passenger car production in South Africa reached 239,874 units in 2023, down 10.1% year-on-year, primarily from reduced BMW and Mercedes output
- Light commercial vehicle (LCV) assembly in South Africa was 107,299 units in 2023, a 4.8% drop attributed to Ford and Toyota plant slowdowns
- Medium and heavy commercial vehicle production stood at 16,452 units in 2023, up 2.3% driven by MAN and Scania investments
- Automotive component manufacturing output value reached R142 billion in 2023, supporting 85% local content in OEM assemblies
- BMW Rosslyn plant produced 82,456 vehicles in 2023, focusing on X3 SUV exports to Europe
- Mercedes-Benz East London plant assembled 64,321 C-Class sedans in 2023 for global markets
- Ford Silverton plant output was 92,107 Ranger pickups in 2023, up 3.5% from prior year
- Toyota South Africa Motors (TSAM) Durban plant produced 156,890 units in 2023, including Hilux and Fortuner models
- Volkswagen South Africa Kariega plant output hit 112,450 units in 2023, mainly Polo and Polo Vivo
- In Q4 2023, total vehicle production was 135,678 units, a 7.1% increase quarter-on-quarter
- Engine production in South Africa totaled 450,000 units in 2023 across Isuzu and Ford facilities
- Press shop capacity utilization in SA auto plants averaged 72% in 2023 due to semi-conductor shortages
- Welding line output for body-in-white reached 1.2 million panels in 2023 from major OEMs
- Paint shop throughput in South African plants processed 480,000 vehicles in 2023 with 95% first-pass quality
- Assembly line efficiency improved to 88% in 2023 from 82% in 2022 across seven OEMs
- Local content in passenger vehicles averaged 58% in 2023, up from 55% in 2022
- Steel usage in SA auto production was 1.1 million tons in 2023, sourced 70% locally from ArcelorMittal
- Aluminium component production grew 12% to 45,000 tons in 2023 for lightweighting
- Plastics and rubber parts output value hit R25 billion in 2023 from 120 suppliers
- Electronics and wiring harness production employed 15,000 workers producing R18 billion worth in 2023
- Forging and casting output for auto parts reached 250,000 tons in 2023
- Tool, die and mould manufacturing supported R4.5 billion in exports from SA in 2023
- R&D expenditure by SA auto OEMs totaled R2.8 billion in 2023, focusing on EV prototypes
- Quality certification (IATF 16949) held by 450 tier-1 suppliers in SA as of 2023
- Vehicle testing at Gerotek facility conducted 12,500 km daily average in 2023
- Prototype development cycles shortened to 18 months average in SA OEMs by 2023
- Additive manufacturing (3D printing) parts usage up 25% to 5,000 units in 2023 production runs
- Robot density in SA auto plants reached 450 per 10,000 workers in 2023
- Energy consumption per vehicle produced dropped 8% to 2,500 kWh in 2023
Production Statistics Interpretation
Despite a 5.2% overall dip due to global hiccups, South Africa's auto industry in 2023 was a masterclass in resilience, flexing its manufacturing muscle with improved efficiency, growing local content, and a stubbornly optimistic heavy vehicle sector, all while its world-class plants quietly built vehicles for the globe.
Sales and Domestic Market
- New passenger vehicle sales in South Africa totaled 497,308 units in 2023, down 6.5% from 2022 amid economic pressures
- Toyota dominated SA new car sales with 133,592 units in 2023, holding 26.9% market share
- Volkswagen Group sales reached 94,780 units in 2023, including Polo at 45,000+ units
- Ford sales totaled 72,345 units in 2023, led by Ranger with 35,678 sales
- Hyundai sales grew 4.2% to 51,234 units in 2023, boosted by Tucson SUV
- Suzuki sales hit 47,890 units in 2023, with Swift and Vitara leading
- Used car sales volume reached 3.2 million units in 2023, 6x new car sales
- Light commercial vehicle sales were 97,456 units in 2023, down 5.8%
- December 2023 new vehicle sales peaked at 52,426 units, up 10% month-on-month
- SUV/cross-over segment captured 42% of passenger car sales in 2023 at 209,000 units
- Electric vehicle sales in SA reached 1,056 units in 2023, up 37% from 2022
- Dealer network comprises 1,200 franchised outlets serving 11 million registered vehicles
- Average new car transaction price rose 7.2% to R428,000 in 2023
- Finance penetration for new vehicles was 92% in 2023, with average loan R350,000
- Export sales from SA ports totaled 384,927 vehicles in 2023, down 4.9%
- Black Friday 2023 boosted sales by 15,000 units across dealerships
- Online vehicle sales grew to 8% of total transactions in 2023
- Fleet sales to corporates accounted for 28% of 2023 total at 139,000 units
- Export sales to Africa region were 120,000 units in 2023, 31% of total exports
- Passenger vehicle dealer stock averaged 45 days supply in 2023
- Incentives like balloon payments financed 15% of 2023 sales
- Women buyers increased to 42% of new car sales in 2023
- Millennial (25-40) segment bought 55% of new vehicles in 2023
- Gauteng province accounted for 48% of national new car sales in 2023
- Western Cape sales totaled 65,000 units in 2023, 13% national share
Sales and Domestic Market Interpretation
Even as economic headwinds stalled overall new car sales, leaving the market in a sobering state of 'Toyota-monium' where one in four buyers chose the brand, South Africans' love affair with the road persisted – it just decisively shifted gears toward pre-owned bargains, practical SUVs, and financing deals that would make a banker blush.
Sources & References
- Reference 1NAAMSAnaamsa.netVisit source
- Reference 2STATSSAstatssa.gov.zaVisit source
- Reference 3AIECaiec.co.zaVisit source
- Reference 4THEDTICthedtic.gov.zaVisit source
- Reference 5APRILapril.org.zaVisit source
- Reference 6BMWGROUPbmwgroup.comVisit source
- Reference 7GROUPgroup.mercedes-benz.comVisit source
- Reference 8CORPORATEcorporate.ford.comVisit source
- Reference 9TOYOTAtoyota.co.zaVisit source
- Reference 10VWvw.co.zaVisit source
- Reference 11AUTOMOTIVEBUSINESSREVIEWautomotivebusinessreview.comVisit source
- Reference 12MCImci.org.zaVisit source
- Reference 13STEELsteel.org.zaVisit source
- Reference 14ALUMINIUMSAaluminiumsa.co.zaVisit source
- Reference 15PLASTICSINFOplasticsinfo.co.zaVisit source
- Reference 16ELECTRONICSINDUSTRYelectronicsindustry.co.zaVisit source
- Reference 17FOUNDRYfoundry.org.zaVisit source
- Reference 18TOOLINGtooling.co.zaVisit source
- Reference 19AIAGaiag.orgVisit source
- Reference 20CSIRcsir.co.zaVisit source
- Reference 213DPRINTING3dprinting.co.zaVisit source
- Reference 22IFRifr.orgVisit source
- Reference 23DFFEdffe.gov.zaVisit source
- Reference 24AUTOTRADERautotrader.co.zaVisit source
- Reference 25NAAMSAnaamsa.co.zaVisit source
- Reference 26HYUNDAIhyundai.co.zaVisit source
- Reference 27SUZUKIAUTOsuzukiauto.co.zaVisit source
- Reference 28AUTOCITYautocity.co.zaVisit source
- Reference 29FOCUS2MOVEfocus2move.comVisit source
- Reference 30NAEDISAnaedisa.co.zaVisit source
- Reference 31LIGHTSTONElightstone.co.zaVisit source
- Reference 32WESBANKwesbank.co.zaVisit source
- Reference 33AUTOMOBILE24automobile24.comVisit source
- Reference 34CARFINDcarfind.co.zaVisit source
- Reference 35MFCmfc.co.zaVisit source
- Reference 36MERSETAmerSETA.org.zaVisit source
- Reference 37MERSETAmerseta.org.zaVisit source
- Reference 38DOLdol.gov.zaVisit source
- Reference 39GREENINDUSTRIESgreenindustries.org.zaVisit source
- Reference 40DHETdhet.gov.zaVisit source
- Reference 41NUMSAnumsa.org.zaVisit source
- Reference 42STATS-SAstats-sa.gov.zaVisit source
- Reference 43LABOURlabour.gov.zaVisit source
- Reference 44USTRustr.govVisit source
- Reference 45DFATdfat.gov.auVisit source
- Reference 46GOVgov.ukVisit source
- Reference 47TRANSNETtransnet.netVisit source
- Reference 48TNPAtnpa.co.zaVisit source
- Reference 49SARSsars.gov.zaVisit source
- Reference 50ITACitac.org.zaVisit source
- Reference 51SACUsacu.intVisit source
- Reference 52BVRbvr.co.zaVisit source
- Reference 53AFTERMARKETaftermarket.co.zaVisit source
- Reference 54DTIdti.gov.zaVisit source
- Reference 55TRADEtrade.gov.zaVisit source
- Reference 56DALRRDdalrrd.gov.zaVisit source
- Reference 57BMWbmw.co.zaVisit source
- Reference 58NATIONALTREASURYnationaltreasury.gov.zaVisit source
- Reference 59COEGASEZcoegasez.comVisit source
- Reference 60BBBEECOMMISSIONbbbeecommission.gov.zaVisit source
- Reference 61SDLsdl.gov.zaVisit source