The automotive industry spans the primary, secondary and tertiary sectors of the South African economy, from agriculture and mining, to the manufacturing and service industries. While other industries have been struggling due to the weak macro-economic climate in the country in recent years, automotive firms have proven resilient, primarily due to the segment’s strong degree of integration, a solid policy framework and export diversification.
The automotive industry remains fundamentally important to South Africa’s socio-economic prosperity, growth and development and central to the South African government’s efforts to industrialise and reindustrialise the country’s economy. The manufacturing sector, as the engine of the economy, provides a locus for stimulating the growth of other activities, such as services, and achieving specific outcomes, such as employment creation and economic empowerment. Manufacturing, therefore, presents an opportunity in South Africa to significantly accelerate the country’s growth and development.
As the largest manufacturing sector in the country’s economy, vehicle and component production accounted for 33% of South Africa’s manufacturing output in 2016, while the broader automotive industry’s contribution to the GDP was 7.4% (4.7% manufacturing and 2.7% retail). Exports of automotive products in 2016 accounted for R171.1 billion, a further record, representing 15.6% of total South African exports.
Please click here to download the full report from NAACAM on South African Automotive Exports 2016-17.
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