WeeklySA_AdminSTRUCTURAL: SA Auto Week, which concluded today, is part of the agenda to position the country and the rest of the continent at the forefront of the global automotive revolution…
By WSAM Reporter
The National Union of Metal Workers of South Africa (Numsa) has urged the government to defend the domestic market and confront structural economic challenges, while warning against high job loss risks posed by the rising imports of vehicles to the country.
Speaking at the three-day SA Auto Week in Gqeberha this week, Numsa general secretary Ivan Jim said: “We cannot normalise the penetration of imported vehicles, today, 63% of vehicles sold in South Africa are imports. We have lost our domestic market.
“Government must not hesitate to raise tariffs and enforce stricter homologation measures. If other countries protect their industries, so must we,” Jim said.
He further called for extraordinary economic measures, including an expansionary budget and targeted infrastructure investments to stimulate growth and safeguard jobs in the face of rising de-industrialisation.
Delivering the keynote speech on “The State and Contribution of the Auto Industry”, Trade, Industry and Competition Minister Parks Tau highlighted both the resilience and the vulnerability of the sector.
“The automotive industry remains one of the cornerstones of our economy, contributing 5.2% to GDP, sustaining nearly 500 000 direct jobs, and anchoring South Africa’s competitiveness in global markets. But as the world pivots to New Energy Vehicles, if we do not adapt, we risk losing our export markets,” Tau added.
The Minister emphasised that South Africa’s abundant critical mineral resources position the country as a potential global hub for clean mobility solutions, with plans already underway to localise beneficiation, battery value chains, and New Energy Vehicle (NEV) production.
He further linked South Africa’s future to continental integration under the African Continental Free Trade Area (AfCFTA): “In 2024, Africa became our industry’s second-largest export market, with sales worth R48.1 billion. Through AfCFTA, we can integrate our automotive and battery value chains across the continent”.
Tau said South Africa could lead in manufacturing and mineral beneficiation, while its neighbours contributed their own strengths.
“Together, we can build an African auto and battery industry that reduces dependence on imports, adds local value, and positions Africa as a competitive global hub for clean mobility solutions.”
The African Auto Pact, under negotiation, could harmonise policies across the continent and create shared prosperity, Tau said.
Delivering a powerful intervention on “Positioning Medium and Heavy Commercial Vehicles (MHCV) onto the National Agenda”, Duncan Mutengwe, Acting CEO of the
National Regulator for Compulsory Specifications (NRCS), underlined the sector’s strategic role in South Africa’s economy and the urgent need to fix regulatory misalignments that are undermining progress.
The SA Auto Week 2025 concluded today with a momentum continuing to build for a coordinated national agenda that positions the country and the rest of the continent at the forefront of the global automotive revolution.
Held under the banner “Reimagining the Future, Together: Cultivating Inclusive Growth and Shared Prosperity”, the SA Auto Week delivered a united call for urgent reforms, bold industrial policy, and decisive action to ensure South Africa’s automotive sector thrives in an era of global transition.
Nelson Mandela Bay welcomed the annual event, hosted at the Coega Vulindlela Accommodation and Conference Centre, describing it as an opportunity to rebuild the automotive sector, forge partnerships and protect jobs.
Held in partnership with the Eastern Cape provincial government, it marked a significant milestone for the city where the National Association of Automobile Manufacturers of South Africa (Naamsa) was founded. Additional historic weight derives from Naamsa’s celebration of 90 years of leadership this year, coinciding with South Africa’s 100 years of automotive manufacturing.
Nelson Mandela Bay Municipality mayor Babalwa Lobishe noted that the event and the partnerships could accelerate investment, skills development and inclusive industrialisation across the metro and province.
Lobishe highlighted the significance of discussions on innovation, localisation, the new-energy transition and workforce development held on the opening day.
“Nelson Mandela Bay is committed to ensuring these discussions translate into practical opportunities for our people, especially for SMMEs, youth and workers seeking re-skilling and placement,” she said. The mayor also expressed concern over recent industrial job losses in the automotive value chain, pledging to work with government, labour representatives and industry stakeholders in expressing deep concern for affected workers and their families.
Lobishe committed to improving service delivery infrastructure, from electricity reliability and water security to roads, street lighting and digital connectivity, “because these are the foundations for attracting and retaining investment.”
“A competitive Nelson Mandela Bay depends on reliable services, efficient municipal systems and responsive governance. By fixing streetlights, intensifying our War on Waste, and stabilising core services, we are making service delivery a driver of job creation, industrial growth and inclusive development.
“We welcome responsible investment, and we will hold investors and partners to a shared promise: growth must be inclusive, locally anchored and supportive of job retention and creation,” the mayor said.
Coega Development Corporation CEO, Themba Koza, said SA Auto Week at Coega was more than an industry gathering: “It is a platform for rebuilding confidence, forging inclusive partnerships, and protecting the jobs that sustain our communities.
“At Coega, we are proud to host this catalytic event and reaffirm our commitment to driving investment, innovation and transformation in South Africa’s automotive sector,” Koza said. – SAnews.gov.za
