Export led growth is one of the main determinants of growth for the South African economy. In 2019, the domestic automotive industry once again excelled on the export side, despite facing domestic and foreign economic headwinds. The export value of vehicles and automotive components comprised a record R201,7 billion, equating to 15,5% of South Africa’s total exports. A record 387 125 vehicles worth a record R148,0 billion, along with a record R53,7 billion in automotive components, were exported to 151 countries in 2019.
Global Trade and Benefits
Continued high levels of investment in the domestic automotive industry, and the large-scale employment of high skilled jobs are testimony to the largest manufacturing sector‘s contribution to the South African economy. The automotive industry represents an increasingly important strategic and catalytic role in the overall South African economy by impacting directly on many important aspects, such as contribution to GDP, employment, skills development, economic linkages, technology and innovation, and making significant contributions to the fiscus through taxes, and substantial direct foreign investment.
Although South African vehicle production increased by 3,6% to a record 631 983 units in 2019 from the 610 060 units produced in 2018, the country’s global vehicle production ranking remained at 22nd in 2019, but its market share improved to 0,69%. South Africa remained the dominant market on the African continent and accounted for 57,2% of total African vehicle production of 1,11 million vehicles. Under the SAAM 2021-2035, the objective is to produce 1% of global vehicle production, or 1,4 million vehicles, per annum in South Africa by 2035, which should substantially improve the country’s status and global vehicle production ranking.