NAACAM is recognised as the voice of the South African automotive component industry both domestically and internationally. As a member driven organisation we are at the forefront of industry leadership, representation and stakeholder engagement for automotive component manufacturers.Anchoring our membership base are suppliers to OEMs for assembly in SA as well as to OE export markets and the domestic and global aftermarket. These manufacturers are supported by a band of associate members who provide specialised services across a diverse range including financial services, logistics, IT, incentive consulting and a host of others.The majority of component suppliers to OEMs are globally owned however there is a significant emphasis of increasing the number of home grown participants in this space. To that extent, NAACAM devotes much resources towards positively impacting the localisation, transformation and supplier development environment in SA.
NAACAM is recognised as the voice of the South African automotive component industry both domestically and internationally. As a member driven organisation we are at the forefront of industry leadership, representation and stakeholder engagement for automotive component manufacturers. Anchoring our membership base are suppliers to OEMs for assembly in SA as well as to OE export markets and the domestic and global aftermarket. These manufacturers are supported by a band of associate members who provide specialised services across a diverse range including financial services, logistics, IT, incentive consulting and a host of others.The majority of component suppliers to OEMs are globally owned however there is a significant emphasis of increasing the number of home grown participants in this space. To that extent, NAACAM devotes much resources towards positively impacting the localisation, transformation and supplier development environment in SA.
NAACAM represents approximately 150 manufacturing brands, representing over 210 regional manufacturing sites. Over 80% of NAACAM manufacturing members supply the local OEMs (for car assembly operations as well as for the OEM aftermarket needs) and to the independent aftermarket. The balance are Tier 2 and Tier 3 firms and direct exporters
Automotive Suppliers Overview Total manufacturing sales for automotive suppliers, that comprises parts and accessories and suppliers of bodies for motor vehicles, trailers and semi-trailers, reached R170 billion in 2023 (Statistics SA). This compares very favourably to the comparative nominal levels reached in 2021 and 2022 of R124 and R135 billion respectively. The analysis of the automotive supplier sales for 2023 (NAACAM Quarterly Survey) reveals the following profile:
The profile highlights that the local OEMs are the most important market (48.3% of sales), followed by exports (32.3% of sales).
The total employment levels for automotive component manufacturing firms are estimated to be 82 560, down slightly on 2022 levels of 83 362 (Automotive Trade Manual 2024).
For the 2023 period, the automotive component industry’s total capital investment is estimated to have been around R4.2 billion.
South African Tier 1 Firms – Sales breakdown and local content review In line with the automotive supplier sales growth in 2023 (R170 billion) versus 2022 (R135 billion), Tier 1 sales for 2023 of R91 billion are notably higher than the levels achieved in 2022 of R69 billion. The Tier 1 levels for 2022 were negatively impacted by the KwaZulu-Natal floods that occurred in April 2022 that severally impacted production at Toyota South Africa Motors, especially in 2022 Q2.
The growth evident for 2023 is linked to light vehicle production increasing by over 20% in the second half of the year, with very healthy production growth achieved by several high-volume local OEMs. This is reflected in the relatively strong Tier 1 sales figures to the local OEMs for 2023 Q3 and 2023 Q4 of R27 and R25 billion respectively. In addition, the value of local content in absolute terms reached R46 billion in 2023, with this R10 billion higher than the 2022 comparative figure.
Despite the improved Tier 1 sales and local content levels in Rands, local content percentage levels have not improved. The 2023 quarterly levels have dropped consistently from 52.3% in 2023 Q1 to 48.9% in 2023 Q4. In addition, the Tier 1 local content level for 2023 of 51.0% is 1.7 percentage points lower than the comparative 2022 figure. This equates to a loss of R1.5 billion in local content value in 2023. The major contributor to the percentage of local content declining is local purchases which only increased by R1.1 billion in 2023. It is clear from the analysis of the Tier 1 sales and local content data in 2022 and 2023 that while the levels of purchases from Tier 2 and Tier 3 firms increased in absolute terms (i.e. from R7.7 to R8.8 billion), they are not increasing in percentage terms (i.e. from 52.7% to 51.7%).
For more information on BMAIS, please contact: Graham Barrett, BMA Intelligent Systems [email protected]
Tel: +27 (0) 31 764 6100