In a 702 Drive interview with John Pearlman. NAACAM CEO, Renai Moothilal, provided an update on South Africaโs automotive component industry, which employs approximately 82,000 people and is a vital contributor to the economy. The automotive industry has seen an 80% drop in exports of South African-assembled vehicles to the U.S. in the first half of 2025 due to anticipated tariffs.
He said that the component industry, which includes a diverse range of businesses from small exporters in the Western Cape to production hubs in Rosslyn and Gqeberha, may be heavily impacted, particularly given the varying company sizes and limited financial buffers.
โOEMs are impacted if component manufacturers lose competitiveness. It is a highly integrated value chain,โ he explained, highlighting a collaborative approach with the dtic and labour voices to address these hurdles. โThis is by far the more employment-rich part of the auto manufacturing sector,โ Renai noted. โThereโs ongoing work to secure the U.S. market, with opportunities in new energy vehicles and African material advantages to boost export potential.โ With negotiations underway and a focus on repositioning for future growth, NAACAM is optimistic about adapting to global shifts.