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Daily Maverick
9 hours ago
- Automotive
- Daily Maverick
Key conversations at Naacam 2025 to address tariff pressures and growth
As Nelson Mandela Bay's automotive sector reels from ongoing challenges and a shrinking market, the 2025 Naacam Show provides a crucial opportunity for industry leaders to come together and explore ways to support growth and sustainability. With US tariffs adding fresh pressure, manufacturers of vehicles and automotive components in Nelson Mandela Bay face an uphill battle to stay competitive in an increasingly shrinking market. However, over the next two days, automotive roleplayers will have the opportunity to connect and network on ways to improve their businesses at the 2025 edition of the National Association of Automotive Component and Allied Manufacturers (Naacam) Show and Conference, which takes place at the Boardwalk Hotel International Convention Centre in Gqeberha. About 150 exhibitors will showcase their products and services, while a host of speakers will lead discussions related to the South African automotive industry on a local and global scale. Speaking at the media launch of the event on Tuesday, Naacam CEO Renai Moothilal said South Africa's automotive component manufacturers provided 80,000 direct jobs and about twice as many indirect jobs through suppliers and other auxiliary businesses. He said there was growing concern over the 'fluid global trade environment', referring to the 30% US tariffs and their impact on this sector. In 2024, the export value of South Africa's automotive industry, including vehicles and components, totalled R270-billion, of which just over 10% — R28.7-billion — went to the US. Breaking that figure down further, Moothilal said R4.4-billion worth of components were exported to the US. 'We live in interesting times, and this sector has faced distinct challenges in the recent past. We have observed a decline in the domestic market for vehicles assembled in South Africa, as well as increased import penetration in both vehicles and components. This led to reduced production from original equipment manufacturers (OEMs).' The panel pointed to two stark examples of mounting pressure on the sector — the withdrawal of Goodyear South Africa and the pending closure of its Kariega plant, and the announcement by Jendamark Automation that US tariffs could cost it R750-million in contracts. In addition to the blow delivered to Nelson Mandela Bay in June when the Goodyear announcement was made, a week ago, ROVD Engineering, also based in the metro, said it had lost hundreds of millions of rands in contracts because of the US tariffs. The company, which has operated in Gqeberha for 61 years, designing, manufacturing and exporting turnkey industrial automation systems to US customers, said it was looking at moving offshore to continue manufacturing. Political instability But global pressures aren't the only threat. Locally, Nelson Mandela Bay's political instability and crumbling infrastructure are disrupting the supply chains that manufacturers depend on. Pointing this out, the CEO of the Automotive Industry Development Centre in the Eastern Cape, Thabo Shenxane, said the political climate and service delivery in Nelson Mandela Bay were ongoing challenges. He said crumbling infrastructure had caused countless disruptions throughout the value chain as it led to unreliable energy, water outages and logistical issues as a result of poor roads and inoperable railway lines. He also referred to the well-documented political instability that has long plagued the metro. 'It's not just a Naacam member problem or a government problem. It is a societal problem, and we must look for opportunities to improve our business,' said Shenxane. He believes the Naacam show provides a unique opportunity for stakeholders in the automotive industry to engage constructively and develop solutions that will assist each other and add to the growth of the entire sector. Automotive Industry Transformation Fund (AITF) CEO Jabulani Selumane agreed with Shenxane, saying the show could prove to be a 'catalyst' for SME growth within the automotive sector. He said that since the AITF was founded in 2021, it had contributed to the establishment of 70 small businesses within the sector, creating 2,700 jobs in the process. 'SMEs are not just junior partners. They are the growth engine, and they bring agility, innovation and the capacity to localise component manufacturing to build resilience in our supply chain.' He said SMEs could not operate in isolation but required support, resources, skills and market access that larger corporations provided, which made the Nacaam Show a valuable platform for growth and development. DM
TimesLIVE
30-07-2025
- Automotive
- TimesLIVE
Naacam Show to be held at Gqeberha automotive hub for first time
It showcases the South African automotive component manufacturing sector and explores global developments influencing the future of the motor industry. The exhibition will have more than 130 exhibitors and incorporates a two-day conference with international and local speakers. With more than 1,200 visitors expected, the Naacam Show brings together a diverse group of automotive component manufacturers, sector stakeholders and service providers, said Naacam CEO Renai Moothilal. 'The decision to host this event in Nelson Mandela Bay (NMB) was made due to the city being regarded an important hub of South Africa's automotive manufacturing sector,' said Moothilal. 'The NMB metro is home to 42% of our members and more than half of the automotive original-equipment manufacturers in South Africa. It makes sense to celebrate this industry in the province that derives a substantial economic benefit from it in job creation, skills and technology transfer and related services.' The conference will address topics shaping the future of a rapidly evolving automotive industry, ranging from global trade, component design, supplier requirements and aftermarket development to sustainability, mineral beneficiation, transformation and skills development in a digitised era.
