South Africa’s automotive components sector is at a defining moment. Global trade shifts, including tariffs from the U.S., rising input costs, and energy and logistics bottlenecks, are squeezing margins and exposing vulnerabilities. Yet, as highlighted at the recent NAACAM Show 2025, these challenges also present opportunities to reposition the sector for long-term growth and resilience.
Government leaders echoed this urgency. Trade Minister Parks Tau stressed that localisation is not a “tick-box exercise” but central to the sector’s survival, noting that even a 5% increase in local content could unlock R30 billion in new procurement.
Deputy President Paul Mashatile reinforced the sector’s role as the backbone of industrial policy, while regional leaders underscored the Eastern Cape’s importance as home to nearly half of the country’s component suppliers.
The way forward lies in deepening localisation, driving transformation, and preparing for the green and digital transitions shaping global vehicle production. Ultimately, the outcomes of the NAACAM Show 2025 reinforced that local component manufacturing is where significant economic benefits reside: job creation, skills transfer, innovation, and industrial depth.
Read NAACAM CEO, Renai Moothilal’s, full post-show op ed here: https://www.engineeringnews.co.za/article/at-a-crossroads-south-africas-automotive-component-sector-can-turn-setbacks-into-opportunities-2025-08-28 #DrivenByAIDC #NAACAMProud #DrivingLocalisation