A concerted campaign by Polish automotive component manufacturers to crack the South African market, either through exports or joint ventures with local companies, could also open the door for South African companies to increase their penetration of the European motor industry.
During November several Polish companies told Business Day of plans to either grow existing South African activities or to enter the market for the first time. A number of research institutes ― specialising in advanced driving-safety systems, biofuels, renewable automotive energy, vehicle automation and autonomous driving ― said they were open to joint research and knowledge sharing.
South Africa, despite being a major African vehicle-manufacturing base and accounting for more than 50% of the continent’s new-vehicle sales, has been a relatively small Polish target until now.
That may change. In 2024, the value of South Africa’s automotive imports from Poland almost doubled from the previous year, from R5.6bn to R11bn. Of that, 92% were components. Vehicles, including the Volkswagen Caddy and Crafter and the Jeep Avenger, provided 8%.
Renai Moothilal, CEO of South Africa’s National Association of Automotive Component and Allied Manufacturers (Naacam), said historically, Poland has provided 1% of components imported by SA vehicle assembly plants. In 2024 this rose to 5%.
If Polish companies, many of them based in and around the capital, Warsaw, have their way, this will not be a blip but the start of a trend. In recent years, Polish delegations have been regular participants at South African components conferences and trade shows.
Moothilal said the Nelson Mandela Bay Business Chamber recently met Polish trade representatives to discuss business opportunities. Nelson Mandela Bay, with Gqeberha at its heart, is home to Isuzu and Volkswagen vehicle assembly plants, a Ford engine plant and dozens of component companies. Chinese vehicle producer BAIC is setting up assembly operations there and multinational company Stellantis ― whose brands include Peugeot, Citroen, Opel and Fiat ― said it will soon follow suit.
Moothilal said: “Polish trade and investment agencies have increased interactions in South Africa, suggesting their intention of developing long-term, sustainable trade.”
He welcomed Poland’s interest in the local industry but said trade growth must be reciprocal. In 2024, Poland ranked only 61st among SA automotive export destinations, accounting for less than 0.2% of aggregate exports. The R110m total — comprised mainly of tyres, silencers, ignition wiring sets, exhausts and general parts and accessories — was down from R120.7m in 2023.
Poland’s motor industry employs 213,000 people — almost twice as many as SA’s — and accounts for 8% of GDP and 13.5% of exports. It is the world’s seventh largest exporter of automotive components. In 2024, the combined value of vehicle and components exports was €45.5bn, equivalent (on November 29) to R898.3bn. Components producers’ main customers are assembly plants in Germany, the Czech Republic, France, Italy and the UK. In Africa, the biggest export destinations are Europe-facing countries such as Morocco and Egypt.
At a time when the South African industry is shedding jobs and production, the potential of co-operation with, and sales to, Poland is a tempting one
Bartosz Mielecki, MD of the Polish Automotive Group — an alliance of about 100 independent companies producing components for assembly plants and the spare-parts aftermarket but also including scientific and research institutes — told Business Day: “South Africa has been quite a difficult market but now we believe it has real potential.”
He is not the only one who thinks so. South Africa is of particular interest to companies specialising in liquefied petroleum gas (LPG) technology. LPG, also known as autogas, is an alternative fuel for cars and commercial vehicles. Its manufacturers claim it can reduce fleet fuel costs by up to 50%.
Pawel Baruniak, head of trade and development at autogas specialist AC, said his company is keen to return to South Africa after an earlier joint venture with a local partner broke down.
He said AC, which operates in more than 50 countries through its Stag LPG brand, was considering several African countries but believed South Africa offered particularly strong potential for engine conversions to LPG. He said: “We are looking for partners and are ready to invest.”
Autogas Alex, which also designs, manufactures and installs LPG systems, is already in Africa but not yet in South Africa. Having previously been told there was insufficient demand for LPG technology here, it changed its mind and said the market now looks “interesting”.
It is a view shared by Pawel Lasocki, commercial director of Wuzetem, which supplies a broad range of parts, including fuel-injection systems, to several industries. Its automotive activities service manufacturers of cars, trucks, buses, construction and agricultural vehicles, and military equipment.
The company already exports to South Africa but Lasocki said there is potential for considerable long-term growth.
In the opposite direction, Moothilal said there is potential for South Africa to take advantage of Poland’s role as an important player in the EU’s electric vehicle (EV) development activities. The presence, in South Africa and neighbouring countries, of plentiful minerals used in EV battery manufacture, is contributing to growing interest in automotive trade and investment.
Poland is home to one of the world’s largest lithium-ion battery production sites, to which South Africa could provide minerals such as manganese, as well as battery sub-components manufactured here.
Moothilal said: “Aside from batteries, South Africa has multiple opportunities to localise high-value EV components due to existing manufacturing capability and raw materials. Products such as high-voltage wiring harnesses, fuel cells and thermal management systems could be supplied to Poland’s industry.”
He said Poland’s role as a hub for European automotive manufacturing could be an opportunity for South Africa to export more components into the European chain. There is also scope for strategic collaboration, with Poland supporting South Africa with knowledge and skills transfers.
None of this will happen by chance. Moothilal said: “Success is not automatic. It will require a targeted export-market strategy, relationship building, quality assurance, logistics alignment and support from both the South African industry and policy environment.”
Furlonger visited Poland in November as a guest of the Polish Investment and Trade Agency
