Despite a marginal decrease in exports, the SA motor industry more than doubled its international trade surplus in 2024, from R21.1bn to R42.8bn.
A drop in the value of imported assembly-line components, in line with reduced domestic vehicle production, outweighed a rise in the number of imported vehicles, particularly from India and China. In 2023-24, the number of vehicles imported from India increased from 160,509 to 173,742.
Chinese growth, off a smaller base, was much steeper, from 39,290 to 52,057. Last year, India accounted for 57.1% of all cars and bakkies imported into SA and China for 17.1%.
These figures are in the 2025 edition of the Automotive Trade Manual, published on Thursday by vehicle manufacturers and importers association Naamsa.
India has become a global production hub for small and entry-level cars and brands imported from there include Toyota, VW and Suzuki. Chinese sales growth comes from that country’s own brands.
Aggregate imports of cars and bakkies from around the world totalled 304,355 in 2024 — 2.6% more than in the previous year. Imports accounted for 78% of all cars sold in SA and 22.8% of light commercial vehicles, primarily bakkies. On the SA market last year, more than 50 car brands were offering 2,203 model derivatives, the greatest selection, in relation to market size, worldwide. In the bakkie market, there were 26 brands with 599 models.
More brands, mainly Chinese, have entered the market this year. In the opposite direction, 68.7% of SA-made bakkies were exported in 2024 — mainly from Ford and Toyota — with more than 250,000 high-value German cars from the SA plants of BMW, Mercedes-Benz and Volkswagen.
The number of vehicle exports fell slightly last year, to 390,844 from 2023’s record 399,809. Their value, however, grew slightly, from R203.9bn to R205.4bn. Against R74.8bn of imports, that represented a surplus of R130.6bn. Conversely, the value of components exports fell last year, from R66.9bn to R63.4bn. Set against R151.2bn of imports, that was a deficit of R87.8bn.
Add vehicles and components together, and the total value of SA automotive exports last year came to R268.8bn, against R226bn of imports — hence the R42.8bn overall trade surplus. The challenge for the local components industry is to find export alternatives to platinum-based catalytic converters, which reduce harmful exhaust emissions from petrol and diesel engines. As the world embraces electric vehicles (EVs), demand for converters is shrinking.
Not long ago, they accounted for more than 50% of the total value of SA components exports. Last year, their share was 30.4%. In 2021, catalytic converter exports were worth R33.9bn. Last year, the figure was R19.3bn. That was still much more than any other component. The next biggest contributors were engine parts (R6.4bn), tyres (R3.4bn) and transmissions (R2.8bn).
The local motor industry exported to 155 countries and territories in 2024. Once again, Germany was the biggest automotive trade partner. SA exported R79bn of vehicles and components and imported R59.5bn, for combined two-way trade of R138.5bn. Second was the US, with R50.7bn of trade — R28.7bn leaving SA and R22bn coming in.
SA exported 24,681 new vehicles to the US in 2024, making it the fourth-biggest market. Germany overtook the UK as the biggest single market, with 80,731 vehicles, followed by the UK (77,866), France (33,409) and Japan (20,068).
Amid US President Donald Trump’s trade war with most of the world, including a 25% duty on cars entering the US, Naamsa CEO Mikel Mabasa said President Cyril Ramaphosa was expected to bat for the SA motor industry when the two leaders meet in coming days. Mabasa said the industry was briefing Ramaphosa aides on what the industry needed.
Industry and government officials have warned of a potential crisis for the SA motor industry unless some kind of automotive deal is achieved. The good news is the US has offered breathing space for components companies exporting to the US, after motor companies there said a sudden switching off of supplies would cause untold damage to the US industry.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.