Latest news with #SouthAfricanAutomotiveMasterplan2035
Business Insider
13 hours ago
- Automotive
- Business Insider
South Africa, Morocco lead Africa's vehicle production, according to latest data
South Africa and Morocco remain Africa's top vehicle producers, according to the International Organisation of Motor Vehicle Manufacturers. South Africa and Morocco remain the leading automotive producers in Africa, with 599,755 and 559,645 vehicles produced, respectively, in 2024. South Africa's production saw a 5% year-on-year decline, ranking it 20th globally, while Morocco achieved a 5% increase, ranking 23rd worldwide. U.S. tariffs imposed by President Donald Trump have impacted South Africa's exports, jeopardising its trade position under the African Growth and Opportunity Act. South Africa and Morocco remain Africa's top vehicle producers, according to the International Organisation of Motor Vehicle Manufacturers. South Africa manufactured 599,755 vehicles in 2024, a 5% year-on-year decline that placed it 20th worldwide. The figure falls short of the 784,509-unit target set under the South African Automotive Masterplan 2035. Morocco, by contrast, produced 559,645 vehicles, a 5% increase that ranked it 23rd globally. Emerging markets are strengthening their position as automotive hubs, supported by rising incomes, regional trade deals, and supply chain shifts away from higher-cost countries. In South Africa, for instance, seven global automakers, including Volkswagen, Toyota, and Mercedes-Benz, operate local plants. But the industry faces headwinds from surging imports, particularly from China, as well as sluggish domestic sales. Japanese manufacturers are expanding, with Isuzu setting a target to lift its African production share to 45%, up from around 23% today. Trade Minister Parks Tau said low demand for locally assembled cars and weak local content levels have led to 12 plant closures and more than 4,000 job losses in the past two years. Exports are also under strain. Shipments to the United States fell sharply in April and May 2025 after President Donald Trump imposed steep import tariffs, eroding the duty-free access previously granted under the African Growth and Opportunity Act (AGOA). The U.S. has historically been South Africa's second-largest trading partner and a key destination for its vehicles. Global picture Global vehicle production reached 92 million units in 2024, led by China, the United States, and Japan. China built over 31 million vehicles, more than the U.S. and Japan combined, supported by strong domestic demand, rapid electric vehicle adoption, and growing exports. Passenger cars made up the bulk of China's production, at 27.5 million units. The U.S. leaned heavily toward commercial vehicles, producing 9.1 million units versus 1.4 million passenger cars, while emerging markets such as India, Mexico, and Brazil also climbed the global rankings. Together, China, the U.S., and Japan accounted for 54% of total output.
Business Insider
2 days ago
- Automotive
- Business Insider
Japanese auto giant aims to make Africa's richest country the hub of continental truck production
The South African arm of Japanese automaker Isuzu Motors is positioning itself as a manufacturing hub for commercial trucks on the continent Isuzu Motors South Africa plans to become Africa's hub for truck manufacturing to boost production and local sourcing. The company conducts discussions with Japan to relocate more commercial truck production to South Africa. Isuzu is targeting West Africa for scaling up truck exports and aims for 45% production localisation. The South African arm of Japanese automaker Isuzu Motors is positioning itself as a manufacturing hub for commercial trucks on the continent, part of a strategy to boost production volumes and deepen the use of locally sourced parts. Billy Tom, President and CEO of Isuzu Motors South Africa, told Reuters that he has been in discussions with Japan regarding the relocation of more production to Africa. Isuzu has already run successful trials of locally building truck bodies, though it still imports some from China and the Middle East. While export volumes for trucks remain small, Isuzu already ships pickups to more than 30 countries in Africa. Tom said the company is targeting West Africa as a starting point for scaling up truck exports. Isuzu has set an ambitious target to grow its African production volumes to 45%, up from about 15% six years ago and the current 22–23%. South Africa's auto industry, home to seven major manufacturers including Volkswagen, Toyota, and Mercedes-Benz ( faces mounting pressure from surging vehicle imports, particularly from China. Low domestic sales of locally assembled cars, coupled with sluggish local content levels, have already forced 12 company closures and wiped out more than 4,000 jobs in the past two years, Trade Minister Parks Tau said. The country produced 515,850 vehicles in 2024, well below the South African Automotive Masterplan 2035 target of 784,509. Adding to the pressure, South Africa's vehicle exports to the U.S. have collapsed this year, plunging 73% in the first quarter and falling even further, 80% in April and 85% in May, industry data shows.
