Manufacturing company Metair has aggressive expansion plans for Autozone to grow its aftermarket parts operations locally — and in the rest of Africa — as it targets a 40% contribution from this business.
Autozone makes components for manufacturers producing vehicles in South Africa, including BMW, Ford, VW, Mercedes Benz, Toyota and Nissan.
The company wants to cushion the potential blow to vehicle manufacturers from US tariffs and reduced local sales for new cars. The aftermarket car parts business is set for significant growth as people keep their cars for longer or buy pre-owned vehicles.
Metair, which manufactures car components, acquired Autozone last year for about R290m to accelerate its diversification into the aftermarket parts business. The retailer sells car parts through more than 200 stores — mostly in South Africa — and is expected to break even in the 2026 financial year.
Metair CEO Paul O’Flaherty said while the company wants to stabilise AutoZone and grow in South Africa, it is assessing opportunities to expand partnerships with existing and new business partners to broaden the customer base and product set. “We’re trying to grow back in the market AutoZone operated in. We also want to look at the rest of Africa.
We have started an investigation into the markets, understanding the car parks, understanding the types of vehicles, and understanding the age of those vehicles. But we first want to get AutoZone really running well in South Africa, but we at the same time looking at those African markets
— Paul O’Flaherty, Metair CEO
“We have started an investigation into the markets, understanding the car parks, understanding the types of vehicles, and understanding the age of those vehicles. But we first want to get AutoZone really running well in South Africa, at the same time looking at those African markets.”
O’Flaherty said there were no immediate plans to open new outlets. “I think we’re happy with our footprint. We haven’t reduced the number of stores. We just need to get stuck on the floor and get the customers back.”
Metair is also positioning AutoZone to attract informal car mechanics to its stores through discounts. “We are working with organisations to get the informal mechanics together, so we can create a buying group... to make it easier for them to access [parts] at better prices and better quality. That’s a real big opportunity.”
Metair wants to increase its contribution from aftermarket to 40% from about 26% of annual revenues. “If we can get it to 60/40%, with 60% from manufacturing over the next few years, that will be good for us. It depends on where our OEMs [original equipment manufacturers] go. Are there going to be new entrants? Are they going to reduce? So 60/40 would be comfortable, and that’s why we need to grow the aftermarket.”
While O’Flaherty expects improved performance for the rest of the year, he warned of a challenging 2026.
He said one major customer was introducing a new vehicle, but another big customer, Ford, will lay off 470 employees at two plants. Established brands are facing a threat from Asian imports undercutting prices, and also from US tariffs. “It’s difficult to predict the financial year 2026 at this stage because of the uncertainties.
“So, we just have to deal with our customers, understand where they’re going, understand where their markets are growing or not growing, and that’s why we have to put a real big focus, because AutoZone is not going anywhere. There should not be uncertainty with AutoZone. The car park is there. It’s an aged car park. So we have to really, really get Autozone to shoot the lights out.”
South Africa’s total local market vehicle production increased by 4% from 270,000 vehicles in the half year to June last year to 282,000 vehicles in the same period this year. The Automotive Business Council, Naamsa, reported in August 2025 that, notwithstanding the effects of the 25% automotive tariffs imposed by the US in April, vehicle exports have displayed notable resilience, with year-to-date vehicle exports still 2.5% ahead of the same period in 2024.
This is despite vehicle exports to the US declining by 82% in the first half of the year. “We do not expect the tariff turmoil to have a direct impact on our OEM customers as these customers do not supply into the US market. However, the tariffs are expected to affect the broader South African economy, the extent of which will only be evident over time,” said O’Flaherty.
He said Metair would only work with Chinese brands if they decide to manufacture locally.
“We’re dealing with potential Chinese manufacturers who want to come and manufacture here, because if they come then there’s an opportunity for us to localise parts for them. So you know, those discussions are still a little bit off. What’s happening at the moment? These are just imported vehicles being flooded into South Africa.”
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