Seven global OEMs. More than 500 component suppliers. A century of vehicle manufacturing, record exports to 109 countries, and a 2035 Master Plan engineered to keep South Africa in the world’s top automotive value chains as the industry electrifies.
South Africa is the only African country with an integrated automotive value chain covering OEM assembly, component manufacturing, catalytic converters, tyres, and transmission components - anchored by long-run policy and global trade access.
Duty-free or preferential vehicle exports into the EU, UK, United States (AGOA), and the African Continental Free Trade Area - a market of 1.4 billion consumers.
Seven global OEMs assembling left- and right-hand drive vehicles, supported by more than 500 component manufacturers including 180+ Tier 1 suppliers.
The Automotive Production and Development Programme (APDP2) and SA Automotive Master Plan 2035 give investors a 10-year planning horizon, backed by rebate and production incentives.
Co-located OEMs, supplier parks, Special Economic Zones, and skilled labour pools across Gauteng, the Eastern Cape, and KwaZulu-Natal - all within 600 km of a port.
Seven global OEMs operate full assembly plants in South Africa, joined by more than 500 component manufacturers. Together they have announced over R40 billion in new investment commitments since 2020.
State-of-the-art facility supplying components for the BMW X3 (G45 platform), supported by the Automotive Industry Development Centre.
Silverton is now the global production hub for the Ranger PHEV - a flagship New Energy Vehicle platform anchoring South Africa’s electrification path, exporting to Europe, Australia and New Zealand.
Rosslyn is the sole global production site for the BMW X3 30e xDrive PHEV, exported to more than 40 markets. The largest infrastructure upgrade in the plant’s 50-year history.
South Africa’s automotive industry is concentrated in three mature regional clusters, each co-located with a major port and connected by national freight rail - making inbound CKD and outbound vehicle logistics world-competitive.
OEMs: BMW (Rosslyn), Ford (Silverton), Nissan (Rosslyn - sale to Chery announced Jan 2026, pending regulatory approval), plus Iveco, BAW, MAN and the majority of major truck and bus manufacturers.
OEMs: Volkswagen (Kariega), Isuzu (Gqeberha), Mercedes-Benz (East London), Ford engine plant (Struandale).
OEMs: Toyota (Prospecton), Mahindra, Volvo - alongside the Port of Durban, Southern Africa’s busiest container port and primary Ro-Ro gateway.
A record year for vehicle exports despite significant tariff headwinds in the United States. The industry’s resilience comes from diversified trade access and a deep supply base.
All-time record - 70.3% of total light domestic production exported
Vehicles + components combined — 14.7% of total SA goods exports
Contribution to total SA manufacturing output
Manufacturing jobs across OEMs and component suppliers
Countries reached - from a single production base
New vehicles sold domestically since 1995
Source: naamsa Quarterly Review of Business Conditions, Q4 2025 & Automotive Trade Manual 2025
SAAM 2035 is the joint industry-government roadmap to position South Africa in the top global automotive value chains as the world transitions to new-energy vehicles. The plan commits to technology-neutral production, deeper localisation, and doubling sector employment.
Up from 0.64% today - roughly 1.4 m units per year
Doubling automotive value-chain jobs from ~115 000 today
Raising SA-manufactured content per vehicle from ~39% toward 60%
Battery-electric, hybrid, PHEV, ICE all supported - aligned to EU/UK 2035 shift
South Africa’s automotive incentive framework is among the most structured in the emerging-market world - combining production rebates, investment grants, and targeted NEV measures.
Automotive Production and Development Programme, Phase 2
Duty rebates tied to local value addition - the core mechanism keeping South African-built vehicles export-competitive.
Automotive Investment Scheme
Non-taxable cash grant on qualifying productive-asset investment by OEMs, component manufacturers, and tooling companies.
New Energy Vehicle production investment allowance
150% first-year tax deduction on qualifying investment in EV and hydrogen-vehicle production buildings, plant and machinery. Legislated via the Taxation Laws Amendment Act No. 42 of 2024.
R&D tax incentive + sector skills support
Section 11D offers a 150% R&D deduction, complemented by merSETA skills programmes and the Automotive Industry Development Centre.
InvestSA will map your project against the full incentive framework at no cost.
Four Special Economic Zones serve the automotive value chain - offering a reduced 15% corporate tax rate (vs. 27% standard), customs-controlled infrastructure, accelerated building allowances, and direct connection to South Africa’s largest ports.
South Africa’s largest SEZ at 9 003 hectares, served by the deep-water Port of Ngqura. Anchored by BAIC’s R11 billion vehicle plant (B30, B40 Plus, X55 Plus), with Stellantis and FAW expanding the automotive footprint.
Automotive Supplier Park adjacent to Mercedes-Benz South Africa, with customs-controlled infrastructure and direct port logistics via Port of East London.
Purpose-built automotive SEZ anchored by Ford’s Silverton chassis plant (home to Ranger & Ranger PHEV production), serving the broader Rosslyn OEM cluster. Focus on Tier-1 component localisation.
Air-cargo SEZ adjacent to King Shaka International, with automotive logistics, e-mobility ecosystem, and proximity to Toyota Prospecton and the Port of Durban.
A selection of automotive and auto-adjacent investment opportunities. All figures as published in the SAIC Investment Project Book.
OR Tambo SEZ, Gauteng
Phase 1: Manufacturing of Platinum Group Metal catalysts and Membrane Electrode Assemblies for the green hydrogen industry - including fuel-cell electric vehicles. Phase 2: Hydrogen refuelling stations in Johannesburg for fuel-cell heavy-duty trucks.
Richards Bay, KwaZulu-Natal
Established rim alloy manufacturer insourcing and upgrading production capabilities. Currently supplying five of the seven OEMs with production facilities in South Africa - a proven component supplier ready to scale.
OR Tambo, Gauteng
A 3,000 m² facility converting PGMs into catalyst precursors and MEAs for electrolysers and automotive fuel cells, with a designed capacity of 4 tonnes of premium catalysts and 18 million MEAs per annum. Plant commissioning underway.
Tshwane to Port of Port Elizabeth
A sustainable, end-to-end rail logistics solution shifting vehicle transportation from road to rail. Transnet infrastructure upgrade connecting the Watloo and Kaalfontein auto terminals in Tshwane to the Port of Port Elizabeth.
Pomona, Ekurhuleni
Black-owned (92%) and Black-female-led (84.5%) manufacturer producing low-voltage, high-voltage, and communication cable harnesses. Currently executing a landmark contract with the Gibela Rail Transport Consortium. Seeking market access in the auto sector.
Eastern Cape Province
Development of a 5 GWh per annum Lithium Iron battery energy storage system manufacturing facility, producing cells for both utility-scale storage and automotive storage applications across the SADC region.
Projects sourced from the SAIC 2026 Investment Project Book, InvestSA. Project names, locations, investment values, status phases, and lead institutions are as published. Contact the sector lead for the latest pipeline briefing.
Download the Project BookEvery automotive enquiry is handled by a dedicated InvestSA sector team which connects you to support systems, sites, permits, and the right OEM or SEZ partner - free of charge.
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