According to the National Association of Automobile Manufacturers of South Africa (Naamsa), the motor industry contributes 6,8% to the country’s gross domestic product (GDP) – 4,3% manufacturing and 2,5% retail. In 2019 a record number of 387 125 vehicles were exported from South Africa to other countries (351 139 in 2018). A record number of 631 983 vehicles were manufactured in South Africa in 2019. These vehicles and parts made in South Africa are exported to 155 markets.
The industry’s exports in 2018 were worth more than R114 billion, with a total amount of R51 billion generated by exporting vehicle parts.
At present, 110 000 people are employed in the South African motor industry to manufacture vehicles and parts, and the industry is responsible for about 457 000 jobs in the formal sector of the South African economy. In 2018, 14,3% of South Africa’s total exports were produced by the motor industry.
In 2018, exports of light vehicles (passenger cars and light commercial vehicles) represented 60,1% of the total domestic production.
What brands are made in South Africa?
BMW
Towards the end of 2015, BMW announced an investment of R6,1 billion for the manufacture of the new generation BMW X3. This was to replace the 3 Series production, which was relocated to Mexico.
BMW South Africa in Rosslyn, Pretoria, currently manufactures the X3 and is capable of producing up to 71 000 units per annum, but this figure has been increased by almost 10% to 76 000 because of the huge demand. More than 85% of all BMW X3 vehicles manufactured at the Rosslyn plant is destined for BMW markets in the US, Taiwan, Japan, Singapore, New Zealand, Hong Kong, Australia, Sub-Saharan Africa and Canada.
FORD
In 2019 the Ford Ranger continued being the leader in exports in the bakkie segment in South Africa, with 65 908 vehicles being delivered to international clients – 24,9% or 16 402 units ahead of its closest competitor.
Ford Motor Company of Southern Africa is on track to manufacture its 700 000th Ranger in 2020, says Ockert Berry, operations director at Ford SA.
Local sales of this bakkie already amounts to more than 225 000 units.
“Since we started building the present generation Ranger in 2011, we have exported 400 000 units across the world,” Berry says.
Locally manufactured Rangers are exported to Sub-Saharan Africa, North Africa, the Middle East, Europe and various other countries. The Rangers and Ford Everest are manufactured in Silverton, Pretoria, and are then transported by railroad to Port Elizabeth where they are shipped for export.
Mercedes-Benz
Mercedes-Benz has a rich history in South Africa and has been manufacturing vehicles in this country for about 72 years. It came as no surprise that the 500 000th C-Class (W205) manufactured at the factory in East London left the assembly line in March last year.
The East London factory is one of four factories world-wide where the luxurious C-Class sedan is manufactured. Celebrating the 500 000th model coincided with the 25 year commemoration of manufacturing the C-Class sedan.
Toyota
Toyota announced in 2016 that the company was going to invest more than R6,1 billion to increase production of the new Hilux and Fortuner at its Prospecton plant in Durban
Toyota’s history in South Africa spans more than 55 years and the company has been manufacturing vehicles at its Prospecton plant since 1972.
During this period, more than one million Corollas have been manufactured and sold in South Africa alone. Approximately 45 million Corollas have been sold world-wide.
The new generation Corolla is due to be introduced in South Africa this year.
Volkswagen
South African Motor Assemblers and Distributors (SAMAD) was established in 1946, with a production of 12 Studebakers per day. Today, Volkswagen manufactures hundreds of vehicles per day. No-one could predict that Volkswagen would be having such a huge impact on the South African vehicle market.
The Polo, Polo Vivo and Polo GTI are manufactured in Uitenhage in the Eastern Cape. The new Polo is exported to all right-hand markets but also supplements Polos for the left-hand market in Europe.
Isuzu
The first Isuzu bakkie was produced at the Kempston Road plant in Port Elizabeth in 1978.
This includes an investment of R1,2 billion in the planning and tooling process, as well as rigorous testing of the product because the bakkie has to be adapted for South African conditions.
Nissan
In 2009 Nissan announced that the Nissan 1400 bakkie, which had been in production for 37 years, would be replaced by the Nissan NP200.
Mike Whitfield, managing director of the Nissan Group of Africa, told journalists in 2019 that R3 billion would be invested in Nissan South Africa. This decision had been made to ensure that the Nissan Navara would also be manufactured at the Rosslyn plant in 2020, including a single cab model.
Mahindra
Mahindra South Africa joined the list of South African vehicle manufacturers in 2018 with the opening of a modern vehicle plant facility in Durban, KwaZulu-Natal.
The new plant for Mahindra vehicles is situated in the Dube Tradeport Economic Zone (TEZ) next to the King Shaka airport. The complete range of Mahindra Pik Up single and double cab bakkies will be manufactured here.
The South African motor industry is fortunate in that it is not totally dependent on local sales but can also rely on export sales, which have been growing over the last couple of years.
According to Naamsa, this trend will continue this year and into the foreseeable future, but one can only wonder if interference by the government and also ongoing strikes by trade unions are hamstringing the industry and preventing even stronger growth.
KENYA
Isuzu
Tata
BJ50
