To strengthen the local industry, the SAAM 2035 highlights the need to increase intra-regional trade and reduce vehicle imports, particularly of used vehicles, which decreases the demand for vehicles produced on the continent. [...] The trade data reveal potential opportunities for South African automotive products, highlighting prospects for these goods in the region and other emerging markets, while also emphasising the key role of the EU and the United States markets. [...] The data presented is for the year 2022, showing the share of ICE-specific exports from South Africa to the EU, Africa, and the USMCA. [...] According to Figure 9, a significant portion of the capital expenditures in the automotive industry is allocated to Property Plant and Equipment (PP&E), with minimal investment in the expansion of vehicle production capacities. [...] All investments in EV production (primarily plug-ins and hybrids) and the supporting charging infrastructure have been made in the absence of a specific EV policy and before the announcement of the EV White Paper in November 2023.
Authors
Related Organizations
- Pages
- 25
- Published in
- South Africa
Table of Contents
- Authors Lesego Moshikaro-Amani TIPS Senior Economist Nothembi Mahlangu TIPS Intern 1
- CONTENTS 2
- Disclaimer 2
- ABBREVIATIONS 3
- INTRODUCTION 4
- SECTION 1 INTERNATIONAL AND REGIONAL TRADE 5
- Vehicle imports and exports 5
- 2005 6
- 2006 6
- 2007 6
- 2008 6
- 2009 6
- 2010 6
- 2011 6
- 2012 6
- 2013 6
- 2014 6
- 2015 6
- 2016 6
- 2017 6
- 2018 6
- 2019 6
- 2020 6
- 2021 6
- 2022 6
- 2005 6
- 2006 6
- 2007 6
- 2008 6
- 2009 6
- 2010 6
- 2011 6
- 2012 6
- 2013 6
- 2014 6
- 2015 6
- 2016 6
- 2017 6
- 2018 6
- 2019 6
- 2020 6
- 2021 6
- 2022 6
- South Africas exports to Africa 7
- 34 35 8
- 18 16 16 8
- 14 15 16 15 8
- Used vehicle imports in Africa 9
- 0 10 20 30 40 50 60 70 80 90 100 9
- 1 000 9
- 2 000 9
- 3 000 9
- 4 000 9
- 5 000 9
- 6 000 9
- 2010 9
- 2011 9
- 2012 9
- 2013 9
- 2014 9
- 2015 9
- 2016 9
- 2017 9
- 2018 9
- 2019 9
- 2020 9
- 2021 9
- 2022 9
- USMCA Africa EU of medium heavy vehicle exports to Africa right axis 9
- Exports by vehicle manufacturers 10
- Component exports and imports 11
- Imports of components 14
- SECTION 2 FOREIGN DIRECT INVESTMENT 16
- FDI in vehicle and component manufacturing 16
- Capital expenditure in the automotive industry 17
- Key manufacturers investing in South Africas automotive industry 18
- Investment in sustainable manufacturing 19
- FDI by geography 20
- Gauteng 20
- KwaZulu-Natal 20
- Multiple Locations 20
- North West 20
- Western Cape 20
- SECTION 3 SUMMARY 21
- APPENDIX 1 22
- REFERENCES 23
