Revving into high gear with a staggering 541,038 passenger vehicles rolling off the line in 2023, South Africa’s automotive industry is firing on all cylinders as it shifts from a challenging past into a future of remarkable growth and strategic global integration.
Key Takeaways
- In 2023, South Africa's automotive industry produced 541,038 passenger vehicles, marking a 10.2% increase from 2022
- The total vehicle production in South Africa for 2022 reached 1,044,942 units including commercial vehicles, down 7.8% year-on-year
- OEMs in South Africa manufactured 92,700 commercial vehicles in 2023, a rise of 15.4% from the previous year
- South Africa exported 384,609 vehicles in 2023, valued at R200 billion, up 14% from 2022
- Vehicle exports to the EU reached 120,000 units in 2023 under trade agreements
- Exports to the US via AGOA totaled 45,000 BMW X3 SUVs in 2023
- South Africa's automotive sector employed 110,500 direct workers in 2023
- Total jobs including indirect reached 400,000 in automotive value chain in 2022
- OEM employment was 36,000 in 2023, up 2% from prior year
- New vehicle sales in South Africa totaled 579,707 units in 2023, up 12.5% YoY
- Passenger car sales reached 407,000 units in 2023
- Light commercial vehicle sales were 163,000 in 2022, down 5%
- Automotive investments in South Africa totaled R28 billion from 2016-2023
- OEM capital expenditure was R4.5 billion in 2023 for plant upgrades
- Foreign direct investment in components reached R12 billion in 2022
South Africa's automotive industry is growing robustly through both domestic production and international exports.
Employment Statistics
- South Africa's automotive sector employed 110,500 direct workers in 2023
- Total jobs including indirect reached 400,000 in automotive value chain in 2022
- OEM employment was 36,000 in 2023, up 2% from prior year
- Component sector employed 65,000 workers across 300 firms in 2022
- Tyre manufacturing jobs totaled 18,000 in 2023
- Logistics and dealerships added 200,000 jobs in 2022
- Female workforce participation in auto industry was 28% in 2023
- Youth employment under 35 years was 45% of total auto jobs in 2022
- Skills development trained 15,000 workers via MERSET in 2023
- Wage bill for automotive sector was R45 billion in 2022
- Unemployment impact: auto sector retrenched 5,000 in 2020-2022 recovery phase
- Black economic empowerment ownership at 28% in supplier firms in 2023
- Artisan shortages numbered 2,500 in welding and machining in 2022
- Average hourly wage in assembly lines was R85 in 2023
- Contract workers made up 35% of OEM workforce in 2022
- R&D employment grew to 4,500 engineers in 2023
- Dealer network employs 120,000 across 4,500 outlets in 2022
- Logistics jobs in auto supply chain: 50,000 drivers and warehouse staff in 2023
- EV transition projected to create 10,000 new jobs by 2025
- Training spend on workforce was R1.2 billion in 2022 via sector funds
- Labour productivity per worker was 120 vehicles/year in 2023
- Union membership covers 70% of auto workers via NUMSA in 2022
- Injury rate in plants was 2.1 per 100 workers in 2023
Employment Statistics Interpretation
Behind the impressive figure of 400,000 total jobs lies a sector precariously balanced on a foundation of significant but slow progress, where crucial strides in youth employment and training are tempered by persistent challenges in gender equity, ownership, and an urgent need for skilled artisans to steer its electric future.
Export Statistics
- South Africa exported 384,609 vehicles in 2023, valued at R200 billion, up 14% from 2022
- Vehicle exports to the EU reached 120,000 units in 2023 under trade agreements
- Exports to the US via AGOA totaled 45,000 BMW X3 SUVs in 2023
- Light commercial vehicle exports hit 156,000 units in 2022, mainly Hilux to Africa
- Passenger car exports to Australia were 25,000 Polo models in 2023
- Medium/heavy truck exports reached 3,200 units in 2023 worth R5 billion
- Automotive component exports grew to R45 billion in 2022, 70% to OEMs abroad
- Exports to SADC countries accounted for 35% of total vehicle exports in 2023
- UK exports post-Brexit were 18,000 vehicles in 2023 from Mercedes and VW
- African Continental Free Trade Area boosted exports by 20% to 45 countries in 2022
- Component exports to Germany hit R12 billion in 2023, mainly wiring and seats
- Bus exports totaled 1,200 units in 2022 to Kenya and Nigeria
- Motorcycle exports from SA reached 15,000 units in 2023 to Europe
- Forgings and castings exports were R8 billion in 2023, 60% to US/EU
- Tyre exports totaled 8 million units in 2022, mainly to Africa
- Catalytic converter exports valued at R3.5 billion in 2023
- Leather seat exports reached 500,000 sets in 2022 for premium brands
- Glass exports for vehicles were 1.2 million units in 2023
- Battery exports started at 10,000 units in 2023 to neighboring countries
- Plastic components exports hit R2 billion in 2022
- Engine exports totaled 120,000 units in 2023, mainly to Brazil
- AGOA exports contributed 12% to total SA exports in 2023 automotive sector
- Export growth rate to Asia was 25% in 2022 for pickups
- SA automotive export destinations include 80 countries with Africa at 28%
- Value of vehicle exports per unit averaged R520,000 in 2023
Export Statistics Interpretation
South Africa's automotive industry has brilliantly transformed its parking lot into a bustling international port, shipping everything from R520,000 luxury SUVs to wiring harnesses and catalytic converters, proving that its economic engine is firing on all cylinders to power a surprisingly diverse global garage.
Investment and Policy Statistics
- Automotive investments in South Africa totaled R28 billion from 2016-2023
- OEM capital expenditure was R4.5 billion in 2023 for plant upgrades
- Foreign direct investment in components reached R12 billion in 2022
- Automotive Investment Scheme disbursed R15 billion incentives since 2013
- BMW invested R6 billion in EV production line at Rosslyn in 2023
- Ford announced R5.2 billion for Silverton plant retooling in 2022
- Mercedes-Benz allocated R2 billion for C-Class upgrades in East London 2023
- Toyota committed R3 billion for Hilux EV prototypes by 2025
- VW Group invested R1.8 billion in Kariega for Polo facelift in 2022
- Isuzu pledged R800 million for D-Max production enhancement 2023
- APDP policy extension to 2035 approved with R20 billion budget
- Local content requirement raised to 60% under new policy 2023
- Tax incentives for EV manufacturing at 150% deduction introduced 2022
- SEIF incentive claimed R8 billion by suppliers in 2023
- Black industrialists scheme funded 50 auto projects with R2.5 billion 2022
- R&D tax allowance for auto sector at 150% of expenditure in 2023
- Infrastructure grants for ports improved logistics by R1 billion in 2022
- Skills levy fund invested R500 million in MERSET programs 2023
- Green fund allocated R300 million for EV battery plants in 2023
- Export marketing assistance totaled R150 million in 2022
- Competitiveness fund disbursed R400 million for supplier upgrades 2023
- Policy on scrap catalytic converters regulates 100,000 tons annually
- AGOA renewal secured R50 billion export potential to 2025
- EU-SA EPA boosted investments by 15% in 2022
- Localization strategy targets 75% local content by 2035
Investment and Policy Statistics Interpretation
While foreign investment revs the engine and local policies steer the course, South Africa's auto industry is betting billions that its future is both electric and emphatically homegrown.
Production Statistics
- In 2023, South Africa's automotive industry produced 541,038 passenger vehicles, marking a 10.2% increase from 2022
- The total vehicle production in South Africa for 2022 reached 1,044,942 units including commercial vehicles, down 7.8% year-on-year
- OEMs in South Africa manufactured 92,700 commercial vehicles in 2023, a rise of 15.4% from the previous year
- BMW's Rosslyn plant produced 367,500 vehicles in 2023 under the AGOA framework
- Ford's Silverton assembly plant output was 145,000 units of Ranger pickups in 2022
- Mercedes-Benz South Africa's East London plant assembled 78,900 C-Class sedans in 2023
- Toyota South Africa's Prospecton plant produced 220,000 Hilux and Fortuner models in 2023
- Volkswagen Group's Kariega plant manufactured 120,500 Polo and Vivo vehicles in 2022
- Isuzu Motors SA's Struandale plant output reached 35,000 D-Max bakkies in 2023
- Nissan’s Rosslyn plant produced 55,000 Navara pickups before closure in 2023
- South Africa's component manufacturing sector supplied 65% local content to OEMs in 2023
- Engine production in South Africa totaled 450,000 units in 2022 from Ford and Isuzu plants
- Pressed metal components output was 1.2 million tons in 2023 across 150 suppliers
- Catalytic converter production reached 2.5 million units in 2022 by local firms like Anglo Platinum
- Wiring harness production hit 18 million units in 2023, mainly for export
- Seat manufacturing output was 1.8 million units in 2022 from suppliers like Adient SA
- Glass production for vehicles totaled 4.5 million units in 2023 by NSG Pilkington
- Tyre production in South Africa reached 25 million units in 2022, with 40% for automotive OEMs
- Battery production for EVs started at 50,000 units in 2023 by First National Battery
- Plastic injection molding for interiors produced 10 million parts in 2022
- Forged components output was 300,000 tons in 2023 from B&M Long
- Paint shop capacity utilization averaged 85% across OEMs in 2022
- Robot density in SA automotive plants is 450 per 10,000 workers in 2023
- Vehicle painting lines produced 500,000 units with 98% first-time quality in 2022
- Assembly line speed averaged 60 vehicles per hour in major plants in 2023
- Local content in passenger vehicles averaged 52% in 2023 per AIPF audits
- CKD kit assembly output was 25,000 units in 2022 for African markets
- EV component localization reached 20% in 2023 for upcoming models
- Stamping press output capacity was 2.5 million panels in 2023
- Quality certification rate for SA auto parts was 96% ISO/TS 16949 in 2022
Production Statistics Interpretation
While passenger car production rose 10% to over half a million units in 2023, the real engine of South Africa's automotive sector remains its remarkably robust and diversified parts industry, which builds everything from catalytic converters to wiring harnesses with impressive quality, proving the industry is far more than just a collection of assembly plants.
Sales and Market Statistics
- New vehicle sales in South Africa totaled 579,707 units in 2023, up 12.5% YoY
- Passenger car sales reached 407,000 units in 2023
- Light commercial vehicle sales were 163,000 in 2022, down 5%
- Market share of Toyota was 18.5% in 2023 SA new car sales
- SUV segment grew to 45% of passenger sales in 2023
- Used car market size was 3.5 million transactions in 2022
- EV sales hit 3,200 units in 2023, up 300% from 2022
- Bakkie sales dominated LDV with 70% share in 2023
- Average new car price rose to R450,000 in 2023
- Dealer sales volume per outlet averaged 150 units/month in 2022
- Import penetration rate was 65% for passenger vehicles in 2023
- Fleet sales accounted for 25% of total new vehicle sales in 2022
- Private buyer sales were 65% of market in 2023
- Motorcycle sales reached 25,000 units in 2023
- Heavy truck sales totaled 4,500 units in 2022
- Online sales platform transactions grew 40% to 50,000 in 2023
- Credit sales financed 85% of new vehicles in 2022
- Waiting period for popular models averaged 3 months in 2023
- Market concentration: top 5 brands hold 55% share in 2023
- Diesel vehicle sales share was 42% in LDV segment 2022
- Luxury segment sales grew 15% to 12,000 units in 2023
- Rental car fleet additions were 20,000 vehicles in 2022
- Total market value of new car sales was R260 billion in 2023
Sales and Market Statistics Interpretation
South Africa’s car market is like a bakkie barreling down a dirt road: while Toyota steers the wheel and SUVs crowd the back, it's a bumpy ride with soaring prices, thirsty for credit, and glancing nervously at the used lot and imported competition as EVs try to wave it down from the verge.
Sources & References
- Reference 1NAAMSAnaamsa.co.zaVisit source
- Reference 2OICAoica.netVisit source
- Reference 3BMWbmw.co.zaVisit source
- Reference 4CORPORATEcorporate.ford.comVisit source
- Reference 5MERCEDES-BENZmercedes-benz.co.zaVisit source
- Reference 6TOYOTAtoyota.co.zaVisit source
- Reference 7VWvw.co.zaVisit source
- Reference 8ISUZUisuzu.co.zaVisit source
- Reference 9AFRICAafrica.nissannews.comVisit source
- Reference 10AIPECaipec.co.zaVisit source
- Reference 11AUTOMOTIVEBUSINESSREVIEWautomotivebusinessreview.comVisit source
- Reference 12DTICdtic.gov.zaVisit source
- Reference 13ADIENTadient.comVisit source
- Reference 14PILKINGTONpilkington.comVisit source
- Reference 15SATYOsatyo.co.zaVisit source
- Reference 16FNBfnb.co.zaVisit source
- Reference 17PLASTICS-SAplastics-sa.co.zaVisit source
- Reference 18BMLONGbmlong.co.zaVisit source
- Reference 19IFRifr.orgVisit source
- Reference 20GREENPEACEgreenpeace.org.zaVisit source
- Reference 21AUTOMOTIVE-EUROPEautomotive-europe.comVisit source
- Reference 22SABSsabs.co.zaVisit source
- Reference 23TRADEtrade.ec.europa.euVisit source
- Reference 24USTRustr.govVisit source
- Reference 25VWvw.com.auVisit source
- Reference 26SADCsadc.intVisit source
- Reference 27GOVgov.ukVisit source
- Reference 28AU-AFCFTAau-afcfta.orgVisit source
- Reference 29GTAIgtai.deVisit source
- Reference 30SAMIsami.co.zaVisit source
- Reference 31SAIMHsaimh.co.zaVisit source
- Reference 32PLATINUMplatinum.co.zaVisit source
- Reference 33SELAsela.co.zaVisit source
- Reference 34AGOAagoa.infoVisit source
- Reference 35STATSstats.gov.zaVisit source
- Reference 36NAFnaf.co.zaVisit source
- Reference 37YOUTHEMPLOYMENT-SAyouthemployment-sa.gov.zaVisit source
- Reference 38MERSETmerset.org.zaVisit source
- Reference 39CCMAccma.org.zaVisit source
- Reference 40SANEDIsanedi.org.zaVisit source
- Reference 41SATJAsatja.co.zaVisit source
- Reference 42NUMSAnumsa.org.zaVisit source
- Reference 43DOLdol.gov.zaVisit source
- Reference 44FOCUS2MOVEfocus2move.comVisit source
- Reference 45AUTOTRADERautotrader.co.zaVisit source
- Reference 46AUTOCITYautocity.co.zaVisit source
- Reference 47CARScars.co.zaVisit source
- Reference 48FLEETWATCHfleetwatch.co.zaVisit source
- Reference 49WESBANKwesbank.co.zaVisit source
- Reference 50MARKLINESmarklines.comVisit source
- Reference 51BUSINESSLIVEbusinesslive.co.zaVisit source
- Reference 52BIZCOMMUNITYbizcommunity.comVisit source
- Reference 53GOVgov.zaVisit source
- Reference 54SARSsars.gov.zaVisit source
- Reference 55THEDTICthedtic.gov.zaVisit source
- Reference 56THEPRESIDENCYthepresidency.gov.zaVisit source
- Reference 57TRANSNETtransnet.netVisit source
- Reference 58DEATdeat.gov.zaVisit source
- Reference 59DMRdmr.gov.zaVisit source
- Reference 60ECec.europa.euVisit source