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The automotive sector, regarded as the leading manufacturing sector and contributing, in total, 5,9% to the country’s GDP in 2009, has been identified in government’s 2007 and 2010 revised National Industrial Policy Framework and Industrial Policy Action Plan as one of the priority sectors to fast-track growth and development. The positive developments and achievements in the South African automotive industry, since 1995, have been driven by a supportive automotive policy regime. The 2020 vision under the new Automotive Production Development Programme (APDP), shared by government and industry, is to double vehicle production from the 2006 levels of about 600 000 units to 1,2 million units by 2020, with a much stronger development of the automotive component sector.
The South African government’s target of a 6% economic growth rate, increased foreign direct investment, skills development and an increase in downstream beneficiated exports will largely depend on future successful performance in priority sectors such as the automotive industry
Aggregate employment in the automobile manufacturing industry in 2009 amounted to about 30 100 persons whilst employment in the component manufacturing industry was of the order of 61 000 employees. Total employment in the trade area, namely in the vehicle sales and vehicle maintenance and servicing field, currently amounts to about 203 000 persons. Employment in the tyre manufacturing industry is of the order of 5 700 persons. The automotive industry exhibits a high multiplier effect due to the creation of opportunities in automotive and related areas and maintains direct linkages with a large number of support services and SMMEs. Employment ratios vary from country to coun¬try, but generally for every worker in the manufacture of a motor vehicle there are at least two or more employed in used vehicle sales, servicing and repair.
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South Africa’s main automotive trading partners (exports plus imports) for 2009 reflected the country’s global linkages with the OEM parent companies in Germany, the USA and Japan. Germany comprised R39,98 billion or 28,4% of South Africa’s total automotive trade in 2009, followed by the USA with R19,08 billion or 13,5% and Japan with R17,40 billion or 12,3% of total automotive trade. The table below ranks the South African automotive industry’s top 10 automotive trading partners for 2009, compared with 2008, while the following tables reflect details and rankings of the top 10 automotive products exported and imported, where applicable, during 2009.
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In respect of the automotive component manufacturers, the exporting link for the majority of these companies is the South African based OEMs and parent companies in relation with first tier multinational suppliers. Consequently, component manufacturers using South Africa’s competitive advantages seek contact with outside partners for market access, technology, process know-how, production rationalization and other joint venture benefits.
South Africa’s vehicle assembly industry is concentrated in three of the country’s nine provinces, namely Gauteng, the Eastern Cape and KwaZulu-Natal, and in close proximity to its suppliers. However, increasingly some automotive development is also taking place in the Western Cape. The three automotive clusters and the Western Cape automotive features may be illustrated as follows: |
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| Automotive clusters |
Gauteng |
Eastern Cape |
KwaZulu-Natal |
Western Cape |
| Capital |
Johannesburg |
Bisho |
Msunduzi/
Pietermaritzburg |
Cape Town |
| Population (% of SA total of 49,32 million) |
10,53 million (21,4%) |
6,64 million (13,5%) |
10,44 million (21,2%) |
5,35 million (10,9%) |
| GDP contribution as % of SA total GDP of R2 423 billion |
33,5% |
7,8% |
16,2% |
14,5% |
| OEMs (manufacturing plants) |
BMW SA
Nissan SA
Renault SA
Ford Motor Company of Southern Africa incorporating the assembly of Mazda |
Volkswagen of SA
Mercedes-Benz SA
General Motors SA |
Toyota SA Motors |
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| Number of automotive component companies |
164 |
82 |
84 |
20 |
| Motor vehicle parc as % of SA total vehicle parc of 8,58 million vehicles |
38,5% |
6,9% |
14,0% |
16,6% |
| Passenger car sales as % of total 2009 NAAMSA sales |
34,6% |
3,6% |
11,1% |
10,7% |
| LCV sales as % of total 2009 NAAMSA sales |
29,9% |
4,6% |
12,6% |
9,7% |
| MCV/HCV sales as % of total 2009 NAAMSA sales |
35,4% |
3,7% |
15,7% |
9,6% |
| Light vehicle exports by OEMs in the province as % of total 2009 exports |
41,1% |
36,0% |
31,9% |
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Essentially the essence of the MIDP is to encourage the OEMs in South Africa to specialize in one or two high volume models on behalf of parent companies, obtain economies of scale benefits via exports and in turn import those low volume models not manufactured in the country to complement their domestic model mix. This approach also assists the component suppliers in obtaining higher volumes. Consequently the “Made in South Africa” products include the following:
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Light commercial vehicles:
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Ford
Mazda
General Motors
Mercedes Benz
Nissan
Toyota
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Bantam and Ranger
BT-50
Corsa Utility and Isuzu KB
Mitsubishi Triton
Hardbody, NP200
Hilux
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Passenger cars:
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BMW
Ford
Mazda
General Motors Mercedes Benz
Nissan
Renault
Toyota
Volkswagen
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3-Series
Ikon and Focus
Mazda 3
Corsa
C-Class
Tiida and Livina
Sandero
Corolla and Fortuner
Polo series |
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Top export destinations in the EU with export value - 2009
European Union
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