Twelve companies close, 4,000 jobs lost as South Africa's car industry suffers low sales

Low domestic sales of locally made cars, an influx of imports and low levels of local content have led to 12 company closures and over 4,000 job losses in the South African motor industry over two years, the trade minister said on Wednesday.

South Africa, a market long dominated by the likes of Volkswagen, Toyota and Mercedes-Benz, saw sales of 515,850 locally produced cars last year, far below the South Africa Automotive Masterplan 2035 target of 784,509, Minister Parks Tau told delegates at an auto parts conference.

Some 64% of vehicles sold in South Africa are imports. Additionally, localization – the level of local assembly, labour and components – remains stagnant at 39%, well short of the 60% target, while US tariffs now significantly impact the country's 28.7 billion rand ($1.64 billion) automotive exports, he added.

"These pressures have triggered 12 company closures and over 4,000 job losses in two years," Tau said.

More jobs in the motor industry under threat