Over R12 billion was invested in new energy vehicles (NEV) manufacturing.
This emerged from Parks Tau, Minister of Trade and Industry, who gave a keynote address, on the second day, of the SA Auto Week, in Gqeberha.
Tau urged South Africa to accelerate its transition to New Energy Vehicles (NEVs) to remain globally competitive.
In addition, a 150% tax deduction incentive is scheduled in 2026.
“The automotive industry is one of the cornerstones of the South African economy. In 2024, the industry contributed 5.2% to GDP, and accounted for 22.6% of total manufacturing output. Vehicle component exports reached R268.8 billion, making up nearly 15% of South Africa’s total exports and reaching 155 markets worldwide. The sector directly provides almost 500,000 formal jobs—across assembly, components, retail, and services—and supports nearly 1 million livelihoods across the region” said Tau.
He said there is an opportunity to work with Saudi Arabia and Algeria in component manufacturing.
“These partnerships open doors for South African component manufacturers to collaborate with their counterparts abroad, ensuring that our industry not only survives but thrives in the coming decades.”
Irvin Jim, General Secretary of NUMSA, said government must be more decisive and tighten security at ports.
He also said imports threaten local jobs and manufacturing capacity.
Picture: Coega