Vehicle export imbalance

The South African motor industry’s overreliance on Europe as a vehicle export market is laid bare in the latest quarterly review by industry association Naamsa. The report, published this week, reveals that of the total 413,268 exports, 332,695 went to the EU and UK. That left just 81,573 for customers in the rest of the world.

As the industry keeps reminding the government, the EU and UK are phasing out sales of vehicles using the petrol- and diesel-dependent internal combustion engine — South Africa’s main product. The industry is begging for a comprehensive policy to encourage the local manufacture and sale of new-energy vehicles, primarily electric vehicles (EVs).

While promising that action is on the way, the government has done little to quell fears that, without incentives to switch to EV manufacture, the industry could be crippled by the loss of its biggest markets. The EU and UK combined bought more than half of the 616,466 vehicles manufactured in South Africa last year. South African consumers bought fewer than 200,000 as Chinese and Indian imports tightened their grip on the local market.

EU/UK demand grew in 2025, from the previous year’s 295,762. Africa, which some strategists see as the long-term sales replacement for Europe, also increased purchases of South African vehicles in 2025, from 26,200 to 35,726. Asian demand, however, declined from 29,265 to 19,827. The biggest fall, predictably, was to North America, where increased US duties on imported cars resulted in exports to the region, which includes Canada and Mexico, collapsing by almost 75%, from 25,554 to 6,530.

Australia bought 13,104 South African vehicles last year, compared with 10,875 in 2024. Central American demand more than doubled from 2,593 to 5,816.

The Naamsa report shows that local vehicle manufacturers invested R7.2bn in manufacturing facilities, product development and local content in 2025. That was slightly less than the previous year’s R7.3bn.