South Africa’s auto industry at a crossroads

Key topics:South Africa builds 16 vehicle models, supporting 115,000 direct auto jobsNissan exits local manufacturing as Chinese brands expand productionMorocco overtakes South Africa as Africa’s largest vehicle producer.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here..By Hanno Labuschagne.There are currently 16 distinct vehicle models being built in South Africa, supporting roughly 115,000 direct jobs or around half a million staff when considering the entire value chain.South Africa has a long history in automotive manufacturing, starting with Ford opening an assembly plant in Port Elizabeth for the world’s first mass-produced car — the Model T — in 1923.Another U.S. giant — General Motors — was the second brand to start up production in the Eastern Cape city in 1926. Its products included Chevrolet and Opel cars.Several more automakers launched local production from the 1950s onwards. However, not all have maintained their presence.Brands that came and went include Cadillac, Chevrolet, Chrysler, Daihatsu, Dodge, Opel, Saab, and Seat. Many of the brands’ exits came amid broader global challenges.In early 2026, 10 companies are still making cars in South Africa. These are Toyota, Volkswagen, Ford, BMW, Mercedes-Benz, Nissan, Isuzu, Hyundai, Mahindra, and Foton.The latter is owned by SAIC, one of China’s largest vehicle brands. Foton’s sister company, BAIC, also builds its Beijing X55 SUV from semi-knock-down kits in South Africa.After nearly 60 years in South Africa, Nissan will be shutting down local manufacturing at its Rosslyn plant in Pretoria.Future models of its last locally-made car — the Navara bakkie — will be imported. The brand also plans to continue providing after-sales support and rolling out new vehicle models in South Africa.Fortunately, the plant itself will not go to waste. Chery, which is South Africa’s largest Chinese car manufacturing group when counting sales of all its sub-brands, will be taking over the facility.Nissan’s production had been declining for many years before it decided to exit the sector. However, it is not the only brand with major challenges.The big three German firms — Volkswagen, BMW, and Mercedes-Benz — are facing intense competition from value-oriented Chinese brands.They now have to deal with the prospect of even more competitive pricing from Chery, which is expected to use its local facility to produce the highly-popular Tiggo 4 Pro crossover..South Africa loses continental crown.Chery’s biggest Chinese competitor — GWM — is also in talks with local vehicle assemblers to initiate joint manufacturing, particularly for its P-series bakkies.The Chinese could breathe new life into a troubled sector. Up to 2025, South Africa was the largest vehicle producer on the continent.Last year, it was surpassed by Morocco, which produced over a million vehicles, far exceeding the roughly 600,000 made locally.Morocco’s achievement is even more remarkable when considering that South Africa’s best year for vehicle production was in 2023, when 633,337 units rolled off local factory floors.Chery’s investment also comes at an opportune time. South Africa’s slow transition towards NEV manufacturing is one of the major factors driving down its vehicle exports.Starting 1 March 2026, local carmakers will get a tax deduction of up to 150% of their investment into new energy vehicle (NEV) manufacturing. Below are the 16 cars currently made in South Africa..Volkswagen Polo Vivo.Assembly location: Kariega, Eastern Cape.Toyota Corolla Cross.Assembly location: Prospecton, Durban.Ford Ranger.Assembly location: Silverton, Pretoria.Toyota Hilux.Assembly location: Prospecton, Durban.Isuzu D-Max.Assembly location: Struandale, Gqeberha.Volkswagen Polo.Assembly location: Kariega, Eastern Cape.Mahindra Scorpio Pik-Up.Assembly location: Dube Trade Port, Durban.Toyota Fortuner.Assembly location: Prospecton, Durban.Toyota Hi-Ace.Assembly location: Prospecton, Durban.Nissan Navara (soon to be discontinued).Assembly location: Rosslyn, Pretoria.BMW X3.Assembly location: Rosslyn, Pretoria.Hyundai EX8.Assembly location: Benoni, East Rand.Hyundai H-100.Assembly location: Benoni, East Rand.Mercedes-Benz C-class.Assembly location: East London, Eastern Cape.Volkswagen Amarok.Assembly location: Silverton, Pretoria.Foton Tunland G7.Assembly location: Gqeberha, Eastern Cape.*This article was originally published by MyBroadband and has been republished with permission.

South Africa’s auto industry at a crossroads

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