Top 10 Automotive Assembly Markets in Africa in 2025

In Summary

• Africa’s automotive assembly output surpassed 1.1 million vehicles in 2024, driven primarily by South Africa and Morocco, which account for nearly 90% of the continent’s total production.
• The industry contributes billions to national GDPs, notably 5% in South Africa and over $17 billion in exports for Morocco, while creating hundreds of thousands of jobs.
• Emerging players like Egypt, Ethiopia, Kenya, and Nigeria are rapidly expanding through government incentives, EV assembly initiatives, and local content policies.

Deep Dive!!!

Friday, 07 November 2025–In 2024 and into 2025, Africa’s automotive assembly industry stood at a critical inflection point, with output of over 1.1 million vehicles across the continent and export-linked hubs escalating investment in electrified mobility and supply-chain localization. At the forefront, the top two markets, South Africa and Morocco, produced between 515,000 and 600,000 units and approximately 559,645 units respectively, commanding nearly 90% of the continent’s vehicle assembly in 2024. These figures underline not merely industrial scale but Africa’s integration into global value-chains, where exports of locally assembled vehicles contribute billions in foreign earnings annually.

Beyond the headline numbers, the economic impact of automotive assembly reverberates through job creation, industrial deepening and regional trade. In South Africa alone, the automotive sector contributes around 5% of GDP, sustains over 100,000 manufacturing jobs, and channels nearly 64% of production into export markets. Meanwhile, Morocco’s $17 billion export industry and tens of thousands of jobs reflect how developing nations on the continent now anchor global supply-chains. Emerging markets such as Nigeria, Kenya and Ethiopia are punching above their weight, backed by policy reforms, under-used capacities and strategic incentives, a sign that Africa’s auto future is no longer static.

This article journeys from the continent’s established hubs to its up-and-coming markets, ranking the Top 10 Automotive Assembly Markets in Africa in 2025. It examines how each country stacks up in terms of market size, leading players, production volume and strategic positioning, and explores the broader themes of electrification, export orientation and supply-chain localisation shaping the next decade. In doing so, it reveals both where Africa stands today and how rising nations are building the industrial muscle to move from assembly volume to value-chain leadership.

10. Uganda

Uganda’s automotive assembly sector is small but rapidly taking shape around a clear national ambition to industrialize mobility, a shift reflected in emerging market estimates and finance-sector data. While comprehensive, public figures for total industry value are limited, related indicators point to meaningful economic activity: Uganda’s auto-finance market was estimated at roughly UGX 2.3 trillion (≈USD 600 million) in 2023, supporting passenger and commercial vehicle demand and showing room for expansion as local assembly scales. The sector’s current commercial footprint is concentrated in commercial-vehicle assembly (buses and coaches) rather than mass passenger-car production, but policy incentives, import-substitution goals and growing public-transport electrification plans have lifted investor and government attention in 2024/2025.

At the centre of Uganda’s push is Kiira Motors Corporation (KMC), founded in 2014 as a government, Makerere University initiative, and its Kayoola range of buses and coaches. KMC and partner Luweero Industries produced dozens of Kayoola vehicles by 2024 (reports cite 27 buses by mid-2024 and about 39 fully assembled buses including electric and low-emission diesel variants), and the firm opened the Kiira Vehicle Plant in Jinja with staged production ambitions. Official project material and sector reporting indicate the plant was designed with an initial capacity target (Kiira Vehicle Plant) of 2,500 units per year in early phases, with some later reporting describing a ramp objective of up to 5,000 vehicles annually once full localization and scale are achieved.

The economic impact is already visible in several dimensions. KMC and related initiatives are framed as job creators and import-substitution engines: industry commentary projects thousands of direct and indirect jobs across the mobility value chain (one estimate points to 14,000 roles if the wider value chain is developed), while localization could materially cut import bills, some analysts suggest potential savings approaching $400–450 million annually if parts production substitutes major imports. Government voices have backed this narrative: as one ministry spokesperson put it,“the government believes that the automotive industry is a catalyst for industrial development…we will continue to support efforts to create an indigenous automotive industry,”signalling sustained policy support for local content and green-mobility incentives.

Yet constraints and pragmatic caveats remain. Current production runs are modest (tens, not tens of thousands, of units), domestic vehicle registrations are low by regional standards, and high capital intensity, import-dependent component supply chains and limited scale economics pose near-term hurdles. Still, credible export orders (reports of inquiries/orders from Tanzania, South Africa, Eswatini and Nigeria) and the Kayoola EVS’s technical gains, long range, operating-cost savings and modern passenger features, give Uganda a credible niche in electric buses and commercial vehicles. For investors and policy makers, the takeaway is clear: with continued public support, targeted incentives for local-content development and partnerships to strengthen parts manufacturing, Uganda’s automotive cluster can grow from a pioneering R&D and low-volume assembly base into a specialised regional supplier — especially in the electrified commercial-vehicle segment.

9. Ghana

Ghana’s automotive assembly sector is small but accelerating, driven by a formal industrial strategy and a cluster of CKD/SKD assemblers that together signal the country’s intent to build a domestic auto industry. Market estimates for Ghana’s automotive sector vary by source, recent industry reports put the market value near$1.9–2.0 billion (2025 estimates), while other analyses cite a broader sector value of roughly $4 billion when wider aftermarket and vehicle-finance activity are included. These figures reflect a market dominated by imports (used vehicles remain a large share) but increasingly supported by local assembly activity under the Ghana Automotive Development Policy (GADP).

The practical footprint of assembly is modest in absolute volumes but strategically important: some studies show that of the roughly 6,000 new vehicles imported annually, around 4,700 units undergo local assembly via CKD/SKD programmes, and the six registered assemblers claim combined capacity to scale far higher if protective and incentive policies are sustained. Leading players include Volkswagen Ghana (Accra facility), Toyota-linked assemblers, Kantanka (the homegrown marque), Sinotruck and other licensed assemblers such as Rana/AIL and Japan Motors. Volkswagen’s local commitment and public statements from assembler leadership underline a belief that Ghana can scale assembly if second-hand imports are curtailed and local-content rules take effect.

Economically, the sector’s current contribution is multi-dimensional: assembly plants create skilled jobs, stimulate parts and service ecosystems, and reduce import leakage when localisation substitutes components. Government incentives, five to ten-year corporate tax holidays for registered SKD/CKD assemblers and tariff concessions on equipment, are explicitly designed to catalyse this value chain and encourage investment in supplier parks. As VW Ghana’s CEO noted in public remarks,“if some restrictions are imposed on imports, it will encourage the local companies to scale up their production capacities,”a comment that neatly frames the policy-industry tension shaping Ghana’s trajectory.

Constraints are real and immediate: overall vehicle registrations remain modest and used-car imports still dominate consumer markets, limiting near-term volume growth and the economies of scale needed for full local parts manufacturing. Financing, dealer network depth and component localisation are the next bottlenecks; the government has proposed measures such as asset-based financing for locally assembled cars to boost demand and pledged support for supply-chain development. If policy incentives endure and investment follows, combining government stimulus, OEM commitments and targeted local supplier development, Ghana can move from a nascent CKD assembly base to a reliable West African assembly hub over the next five to ten years.

8. Tunisia

Tunisia’s automotive assembly sector in 2024–2025 remains a modest but strategically important part of the country’s industrial mix, with industry reports estimating the domestic market (new-vehicle sales, assembly activity and related aftermarket) at roughly $1–1.5 billion in 2024, a figure that rises if you include the wider supplier and service ecosystem. Vehicle registrations and sales data from 2023/2024 show a market recovering from economic headwinds (around ~50–52k registrations in 2023), underlining that Tunisia’s assembly activity is largely export-oriented and closely tied to regional demand and European supply chains rather than large domestic volumes.

The sector’s economic impact is felt mainly through jobs, parts suppliers and export revenues rather than headline vehicle volumes. Recent foreign investments and supplier projects, for example the Autoliv steering-wheel plant project that announced nearly 700 new jobs in El Fahs and capacity to produce millions of steering wheels annually, illustrate the employment and upstream value-chain effects of keeping assembly and components local. Beyond direct employment, Tunisia’s light-vehicle and commercial-vehicle assembly supports a cluster of wiring-harness, casting, plastics and electronic suppliers that feed both domestic assembly lines and exports to Europe, creating multiplier effects in manufacturing and logistics.

Leading players are a mix of legacy assemblers and specialised component firms. Historical assemblers such as STIA (Société Tunisienne d’Industrie Automobile) and IMM (Industries Mécaniques Maghrébines)still operate in commercial-vehicle and bus niches, while international suppliers and component makers (Autoliv, COFICAB, among others) are scaling capacity to serve OEM export contracts and regional platforms. Tunisia’s proximity to Europe gives these players a cost-competitive logistics advantage for CKD/SKD work-packages, and local expertise in wiring, foundry and sub-assemblies positions the country as a mid-tier supplier rather than a mass-volume assembler, a role that is commercially viable but limits immediate domestic assembly volumes.

Looking ahead, Tunisia’s upside depends on converting supplier wins into higher local content and stabilising the policy and macroeconomic environment that underpins investor confidence. Analysts caution that scaling to larger passenger-car volumes will require clearer incentives, upgraded export logistics and stronger local component manufacturing to capture more value on-shore. As one sector outlook noted, Tunisia’s strength is export-oriented light manufacturing and parts production,“low labour costs, export infrastructure and closeness to Europe”make it attractive for CKD/SKD packages, but moving from niche supplier to higher-volume assembler will require both policy clarity and targeted capital for plant modernisation.

7. Algeria

Algeria’s automotive sector is re-emerging as one of North Africa’s most dynamic assembly markets. Production data show the country ramping up from modest post-pandemic lows to an estimated ~82,000 vehicles in 2023with forecasts pointing toward roughly 134,000 units by 2028,reflecting renewed investment and policy support. Market research firms and industry briefs place the Algerian automotive market value in the 2024/25 window in the low-to-mid single-digit billions of USD (estimates vary by source and by whether used-car trade and parts are included). These headline numbers capture both a rebound in new-vehicle demand, imports and authorised kit entries rose strongly in 2024, and the growing contribution of assembly lines and component projects to GDP.

The sector’s impact on the Algerian economy is multi-faceted: it creates skilled industrial jobs, reduces import leakage when local assembly replaces fully built imports, and serves as a cornerstone of Algeria’s diversification strategy away from hydrocarbons. Recent factory openings and expansion plans (and the revival of idled plants) are being positioned as industrial policy wins: local assembly projects bring training programmes, supplier linkages and logistics activity that ripple through regional economies. Analysts note that auto-finance activity (valued in local currency terms at significant levels) and increased customs flows around CKD/SKD kits also signal broader economic spin-offs beyond factory gates. In short, the industry is being pitched by policymakers as both an employment engine and a structural diversification play for Algeria.

Leading players in Algeria combine legacy Western OEM partnerships and newer entrants from Asia. Renault’s Oran SKD/SKD operation (Renault Algérie Production) and the recently developed Stellantis Tafraouiplant are the highest-profile projects: Renault’s Oran facility was established to assemble Sandero/Symbol variants and has a reported base capacity of about 25,000 units per year, while Stellantis inaugurated a Tafraoui facility in late 2023 with ambitious localization and scale plans. Domestic assemblers and groups (including Sovac-linked operations and local partners handling Hyundai, Kia and Chinese brands) round out the ecosystem, and Chinese marques such as Geely and Chery have had strong sales momentum in 2024, signalling both import-led demand and the potential pipeline for local CKD activity. These multi-brand footprints create a mixed model of foreign OEM assembly, local joint ventures and growing Chinese supply-chain presence.

Looking forward, Algeria’s strategic pivot toward electrified mobility is the sector’s most consequential development. In 2025 Algeria signed strategic partnerships with Chinese partners to develop large EV production projects (announced capacity figures in media reports range widely, with referenced projects targeting 50,000+ units in initial phases), an ambitious step that would materially shift the country’s role from regional assembler to electrified manufacturing hub if realized. That opportunity is tempered by clear challenges: scaling local content, stabilising regulatory approvals for foreign OEMs, and building the supplier base and charging/infrastructure ecosystems needed for EVs. As one regional analysis concluded, Algeria “has the pieces to scale,” but success will hinge on converting headline JV announcements into sustained localisation and export-ready industrial capacity.

6. Kenya

Kenya’s automotive assembly sector in 2024–25 is best described as a small but strategically positioned industry: locally assembled output fell to 11,555 units in 2024, the lowest since 2021, reflecting weak demand and tight financing conditions, yet the country continues to position itself as an East African assembly gateway. Despite the short-term dip, first-half 2025 production showed recovery signals as assemblers responded to new incentives and nascent EV projects, underlining Kenya’s resilience and upside potential.

On market value, much of Kenya’s motoring economy still sits in the used-car segment: the used car market was estimated at about $2.8 billion in 2024,underscoring why import dynamics dominate demand and why local assemblers face an uphill battle to scale volumes rapidly. Nevertheless, the assemblers’ economic footprint extends beyond vehicle counts, local assembly supports component workshops, dealer networks and auto-finance activity, creating skilled manufacturing and logistics jobs and contributing to industrialisation objectives set out in the government’s National Automotive Policy.

Leading players anchor the local ecosystem and give Kenya credible industrial capability: Associated Vehicle Assemblers (AVA) (multi-brand assembler and IATF16949 certified), Isuzu East Africa, Kenya Vehicle Manufacturers (KVM), Trans-Africa Motors (TAM) and niche domestic projects such as Mobius Motors. A sector concentration analysis produced for the Competition Authority of Kenya shows AVA and Isuzu together accounting for the majority of assembly market share (around 40% each in a past filing), with KVM and smaller firms rounding out capacity, a structure that delivers technical competence but limits competitive scale for new entrants.

For Kenya to move from modest CKD/SKD throughput toward meaningful industrial scale, three structural priorities recur across 2024/2025 analyses: (1) reduce economic incentives for used-vehicle imports (to create demand pull for locally assembled units); (2) accelerate supplier development and local-content programmes so parts can be sourced locally at scale; and (3) stabilise industrial policy execution under the National Automotive Policy to attract OEM investment and financing. As the policy paper states, the NAP “seeks to provide an enabling environment for automotive industry players to realise their full potential,” and if implemented, it could transform Kenya from a niche assembler into a regional manufacturing node.

5. Nigeria

Nigeria’s automotive sector remains a high-potential yet under-realised market in 2024–25. Publicly reported assembly output for 2024 sits at roughly 30,000 assembled vehicles, a modest figure compared with continental leaders but one that masks a much larger consumer market dominated by imports and the used-car trade. Analysts and government documents stress the difficulty of a single“market value”because of informal imports, but formal estimates and industry forecasts put the organised new-vehicle and related-aftermarket sector in thelow-to-mid single-digit billions of USD (when vehicle sales, parts, finance and services are combined), while aggregate used + new vehicle activity runs substantially higher. This structural split, small domestic assembly against a very large import market, frames Nigeria’s industrial challenge: convert demand for imports into demand for locally assembled and manufactured units.

The economic impact of growing local assembly would be significant. The government’s National Automotive Industry Development Plan (NAIDP 2023) sets an ambitious target to scale domestic production to 200,000 units annuallyand raise local content to 40%, explicitly framing automotive industry growth as a jobs, skills and industrialisation priority. If realised, that scale could generate thousands of manufacturing and supplier jobs, reduce import bills and strengthen downstream sectors such as parts, logistics and vehicle finance. As Industry Minister Doris Uzoka-Anite noted in 2024, “the government has made funds available to grow the nation’s automotive industry,” signalling political will to back policy levers with capital and procurement incentives.

Leading private players are already shaping the nascent assembly ecosystem and proving parts of the plan are practicable. Innoson Vehicle Manufacturing (IVM),founded by Innocent Chukwuma, has advanced localised models (including an unveiled locally produced electric vehicle in September 2024) and claims strong domestic parts content in several models; Stallion Group (through VON Automobiles) operates modern assembly capacity and public material cites a plant with an installed capacity of 200,000 units, illustrating how existing assets could be reactivated and expanded if demand and policy align. Other participants include Stallion’s multiple brand partnerships, GAC/Chinese assemblers, and smaller specialist producers (tricycles, buses) that supply commercial transport needs. These examples show both indigenous innovation and the importance of JV or assembler partnerships with global OEMs to scale capacity.

Despite clear upside, practical constraints limit near-term scale-up. Key headwinds documented in 2024/2025 include heavy competition from cheaper used imports (which the market still favours), FX volatility that raises input costs, limited local supplier depth for high-value components, and uneven access to affordable industrial finance. Industry observers therefore emphasize policy sequencing: curbing grey imports, improving access to long-term capital, and using government procurement to create initial demand for locally assembled units. As one NADDC report put it, converting policy into factory orders and supplier development is the binding constraint, and the policy roadmap exists; the test is execution. If authorities and private groups act in concert, Nigeria has the market size and entrepreneurial base to move from niche assembly (tens of thousands of units) to a scaled, regionally significant automotive industry over the coming decade.

4. Ethiopia

Ethiopia’s automotive sector in 2024/2025 is best described as a fast-evolving, policy-driven market moving from small-scale kit assembly toward an electrified assembly agenda. Industry datasets record roughly 44,000 units of motor-vehicle chassis fitted with engines in 2024, a useful indicator that local assembly activity, largely CKD/SKD work and chassis assembly, is already material compared with many African peers. Analysts broadly place Ethiopia’s overall automotive market value in the low single-digit billions of US dollars when new-vehicle sales, used imports, parts and related aftermarket activity are combined, with specialist reports and market briefs forecasting accelerated growth as EV policy measures take hold.

The government’s abrupt policy pivot in 2024, banning imports of petrol and diesel vehicles and layering in generous tax and regulatory incentives for Evs, has been the defining macro impulse shaping industry economics. That policy has three practical effects: it creates immediate demand for locally assembled electric models, it redirects foreign-exchange spending away from fuel imports, and it forces OEMs and assemblers to prioritise local assembly or controlled imports of electric models. Observers note the move is ambitious (the government targets hundreds of thousands of EVs by 2030), but also uneven in execution: as one feature put it,“Sometimes we have power cuts, but we manage,”underscoring the infrastructure gaps that must be closed even as policy opens markets.

Leading industry actors are a mix of local champions and strategic global partners. Marathon Motors Engineering, the Hyundai-linked assembler chaired by Haile Gebrselassie, has been central to Ethiopia’s early EV and ICE assembly efforts, installing an assembly line in Addis Ababa and rolling out the Ioniq and other electrified models in small series. Other domestic groups and Chinese OEM partners are active in minibuses and commercial vehicles; several local firms are also pivoting into battery assembly, charging solutions and service networks. These players not only assemble units but are investing in staff training, warranty programmes and after-sales networks, essential building blocks if Ethiopia is to convert policy support into sustainable industry capacity.

Economically, the sector’s potential is significant but contingent on solving supply-chain and infrastructure bottlenecks. Local assembly and a successful EV transition would cut multi-billion-dollar fuel imports, create skilled manufacturing jobs, and catalyse upstream component production, outcomes the government explicitly links to industrialisation goals. Yet challenges remain: limited charging infrastructure, a shallow local component base, and the need for long-term industrial financing. For investors and policymakers the imperative is clear: pair the EV import ban and fiscal incentives with targeted capital for supplier development, charging networks and grid resilience. If Ethiopia executes that sequence, the country can move from chassis-assembly volumes to a differentiated regional hub for electric commercial vehicles and light passenger cars, turning ambitious targets into measurable industrial impact.

3. Egypt

Egypt’s automotive sector entered 2024/2025 with clear momentum and ambitious government targets, even as independent estimates differ on short-term output. Market analytics place the Egyptian automobile market’s 2024 value at roughly USD 6.1 billion, reflecting new-vehicle sales, parts and aftermarket activity, while production estimates range (depending on methodology) from around 37,000 units reported by industry trackers to national targets of 100,000+ vehiclesas authorities fast-track localisation and assembly programmes.

The economic impact is already tangible: the government’s 2024–2030 Automotive Industry Development Strategy aims to raise local value-added and expand production as part of a broader industrialisation push. Officials describe the programme as seeking to “raise local value-added content to 60%” and to stimulate investment in priority industrial zones, a policy stance designed to generate jobs, reduce import dependence and grow exports to the Middle East and Europe. Egypt’s wider trade performance, with total exports expanding in 2024, underlines the macro benefit of a competitive automotive export sector for foreign-exchange earnings and industrial employment.

Leading players operating in Egypt combine multinational OEMs and strong local partners: Nissan, Stellantis (through regional partnerships), GB Auto, Hyundai affiliates, and new Chinese entrants such as BYD and Exeed are all active in local assembly, CKD operations and component sourcing. Egypt now hosts 15 manufacturers assembling locally, and firms are investing in tooling and supplier linkages to meet the policy’s local-content targets, a structural shift from pure import reliance toward deeper on-shore value capture. As one industry brief noted, the country’s combination of industrial zones and proximity to export markets makes it a pragmatic assembly hub for both North Africa and the Middle East.

Nonetheless, practical constraints persist and shape the near-term outlook. Analysts flag currency pressures, skill gaps in vehicle-grade manufacturing and the need for faster supplier development as binding constraints; market forecasts therefore emphasise that reaching the strategy’s 400,000–500,000 unit ambitions by 2030 will require sustained investor confidence, financing for local suppliers, and reliable industrial power and logistics. The takeaway for policymakers and investors is straightforward: Egypt has the policy scaffolding and OEM interest to become a North African automotive hub, but execution—turning incentives into factory volumes and local-content realities, will determine whether the sector delivers the promised jobs, export revenue and industrial deepening.

2. Morocco

Morocco’s automotive sector has vaulted into continental leadership, producing roughly 559,645 vehicles in 2024 and generating automotive exports valued in the tens of billions of dollars,a performance that positions the industry as one of Morocco’s largest manufacturing engines. That output is concentrated in a few high-capacity plants and an extensive supplier ecosystem, and recent reporting shows automotive exports reached roughly 157 billion dirhams (~$17 billion) in 2024, underscoring the sector’s rapid commercial scale and export orientation.

The economic impact is profound: the auto industry is a major employer and foreign-exchange earner, with estimates commonly citing well over 200,000 direct and indirect jobs tied to vehicle plants, parts suppliers and logistics, supporting industrial clusters around Tangier, Kenitra and Casablanca. Beyond jobs, Morocco’s strategy has been explicit about linkages: officials aim to raise local sourcing to as much as 75% by 2030 and to pivot a growing share of exports toward electrified vehicles, moves designed to capture more value onshore and protect the sector against changing EU rules on vehicle emissions and domestic content.

Leading players anchor this ecosystem. Renault’s large Tangier complex and Casablanca operations, where hybrid and Dacia models are now assembled, remain central to volume, while Stellantis’ Kenitra plant (originally opened with a 200,000-unit capacity) is undergoing a multi-hundred-million-euro expansion to more than double capacity and add low-speed EV production. Toyota and a growing roster of Chinese suppliers and battery-component firms (BTR, CNGR, Gotion) are also investing in battery and cathode projects, signalling a deliberate push up the value chain from CKD assembly into battery-cell manufacturing and EV components.

The strategic challenges are clear even as the outlook is bullish: Morocco must convert headline investments into deep local content, develop a competitive supplier base, and expand skills and grid capacity to support gigafactories and EV assembly lines. As Trade Minister Ryad Mezzour has emphasised, Morocco is actively courting battery manufacturers and“expects more EV battery investments”to secure the sector’s future, a policy that, if matched by faster localisation and workforce development, could keep Morocco on track to be Africa’s electrified automotive hub.

1. South Africa

South Africa remains the continent’s automotive powerhouse, producing between ~515,850 and 599,755 vehicles in 2024 depending on the source, a range that reflects differences in methodology but leaves no doubt about the country’s scale. That volume sits alongside a large export orientation: roughly 390,000+ vehicles were exported in 2024, meaning exports account for well over half of output and historically around 64% of production, a pattern that positions South African assembly firmly within global OEM supply chains.

The industry’s economic footprint is substantial and multi-dimensional. The automotive value chain contributed around 5% of GDP (manufacturing and retail components combined) and accounts for a meaningful share of South Africa’s manufacturing value-add; it also supports well over 100,000 direct manufacturing jobs and many more in component supply, logistics and dealerships. Exports earned billions in foreign exchange (with important markets in Europe, the US and Africa), and NAAMSA data show the sector’s contribution to manufacturing output and employment is central to industrial policy debates, making the auto industry a strategic priority beyond headline production numbers.

Leading global OEMs anchor the industrial ecosystem: Toyota, Volkswagen, Ford, BMW, Mercedes-Benz (and important suppliers and newer entrants such as Stellantis and Chinese players) operate assembly and component plants in provinces from Gauteng to the Eastern Cape. These firms underpin complex supplier networks, wiring harnesses, castings, electronics and stamping, that give South Africa comparative advantages in exportable, vehicle-grade components. At the same time, the sector faces real strains: localisation rates languish (around 39%, well under policy targets), power reliability and increased low-cost imports have pressured margins, and recent job losses and plant closures have sharpened calls for targeted policy action.

Policymakers and industry are responding with a mix of incentives and strategic repositioning. The government’s Automotive Masterplan 2035 and short-term incentive tweaks aim to raise local content and support EV transition, while a recent R1 billion (≈US$54m) EV incentive package seeks to attract battery and EV investment, a necessary pivot as global OEMs electrify product lines. As Trade Minister Parks Tau noted in 2025, the sector “remains one of South Africa’s largest manufacturing engines” and requires both protection and modernisation to keep its global linkages intact; the immediate policy challenge is converting incentives into higher localisation, grid stability and renewed export competitiveness.

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