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Steenhuisen calls for broader approach to SA's auto industry

South Africa’s automotive aftermarket contributed R202.6bn to gross domestic product (GDP) in 2025 and supported more than 310,000 jobs, Deputy Minister of Trade, Industry and Competition John Steenhuisen said at Automechanika Johannesburg on 27 October.
Source:
Source: Magnific

Speaking at the event’s CEO Breakfast at Gallagher Convention Centre, Steenhuisen said the retail and aftermarket economy generated approximately R933bn in trade last year. The sector includes more than 23,000 businesses, most of them small and medium-sized enterprises (SMEs).

The Retail Motor Industry Organisation (RMI) welcomed the recognition of the aftermarket’s role in the automotive value chain, which extends beyond new vehicle manufacturing to include maintenance, repairs, parts supply and roadworthiness testing.

R107.5bn replacement parts import bill

Steenhuisen said South Africa imported approximately R107.5bn worth of replacement parts in 2025, presenting an opportunity to expand local production and reduce reliance on imports.

With around 76% of vehicles on South African roads outside their warranty period, he argued that the country’s existing fleet of approximately 13 million vehicles offered significant demand for locally produced parts and repair services.

He called for the review of the Automotive Production and Development Programme (APDP2) to consider the broader automotive ecosystem, including businesses that maintain and repair vehicles throughout their lifecycles.

“Localisation must extend beyond the factory gate to include the businesses that keep South Africans moving every day,” Steenhuisen said.

AfCFTA offers export opportunities

The African Continental Free Trade Area (AfCFTA) could help South African businesses expand exports of replacement parts, remanufactured components and aftermarket services, according to Steenhuisen.

He said the country could build on its existing engineering expertise and distribution networks to strengthen its position in regional automotive supply chains.

The opportunity extends beyond complete vehicles and original equipment components to include specialised maintenance and repair services, he said.

Skills shortages threaten competitiveness

The Deputy Minister also highlighted the need to develop technical skills as electric and hybrid vehicles, advanced driver-assistance systems and increasingly complex diagnostic technologies change repair requirements.

He said South Africa had approximately 31% fewer qualified automotive artisans than in 2009, despite an increase in apprenticeship numbers.

RMI chief operating officer Henk Ferreira said the industry needed to ensure that technicians and artisans could work safely and effectively with evolving vehicle technologies.

He called for continued collaboration between industry, government, the Manufacturing, Engineering and Related Services Sector Education and Training Authority (merSETA), technical and vocational education and training (TVET) colleges, and training providers to strengthen apprenticeships and workplace learning.

Road safety and vehicle lifespan

Steenhuisen also highlighted the aftermarket’s role in road safety through vehicle maintenance, quality repairs and roadworthiness testing.

He said extending vehicles’ useful lives through repair and remanufacturing could preserve economic value and reduce waste, while effective end-of-life vehicle management would become increasingly important as environmental requirements evolve.

Ferreira said the priority was to build on the sector’s existing capabilities and create conditions for businesses to grow, innovate and compete.

Steenhuisen called for closer government and industry collaboration to turn opportunities in localisation, skills development, job creation and regional trade into practical outcomes.

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