South Africa imported car spares worth R100 billion that could have been built locally

In 2025, South Africa imported over R100 billion in car parts, which Deputy Trade Minister John Steenhuisen believes the country could have produced locally.

Addressing the Automechanika Johannesburg 2026 CEO Breakfast on 27 October 2026, Steenhuisen called for greater investment, localisation, skills development and export expansion in the automotive aftermarket industry.

He described the sector as a driver of economic growth, industrial development and employment, adding that the industry traded R933 billion in 2025 and added R202.6 billion to GDP.

The automotive manufacturing sector supports more than 310,000 jobs, representing approximately 70% of automotive employment in South Africa, across more than 23,000 local businesses.

Steenhuisen explained that these “are not peripheral activities”, but are instead central to South Africa’s economic resilience, industrial capability, and mobility.

With around 13 million vehicles on our roads, with an average age of nearly 11 years and 76% outside their warranty periods, South Africa has the opportunity to expand domestic manufacturing of replacement parts.

Last year, the country imported approximately R107.5 billion in replacement parts, representing missed opportunities to retain economic value and create employment.

“Every additional percentage point of localisation in replacement parts represents jobs created, industrial capability strengthened, foreign exchange retained, and value added within South Africa,” said Steenhuisen.

He added that South Africa has the engineering expertise, established distribution networks and industrial capabilities to become a leading automotive aftermarket hub for Africa.

That said, Steenhuisen expressed concern that the country has nearly 31% fewer qualified automotive artisans than in 2009.

To address this, the Deputy Minister called for collaboration between government, industry and training to prepare young South Africans for emerging technologies.

This includes electric vehicle manufacturing and repair, advanced diagnostics and artificial intelligence-enabled systems.

“South Africa must move from investment announcements to practical implementation,” said Steenhuisen.

“Localisation must extend beyond the factory gate. It must include the businesses that keep South Africans moving every day.”

Preparing the automotive aftermarket for electrification

Henk Ferreira, Chief Operating Officer (COO) of the Retail Motor Industry Organisation (RMI), welcomed the Deputy Minister’s recognition of the sector’s contribution.

“The aftermarket supports hundreds of thousands of jobs and thousands of businesses, many of them small and medium-sized enterprises,” he said.

“It provides essential services to motorists and businesses while sustaining technical expertise and economic activity across the country.”

According to Ferreira, South Africa’s existing fleet sustains demand for replacement parts, maintenance and repair services, but the influx of more advanced vehicles requires investment in local technical capability.

He explained that the goal is not simply to train more people, but rather to build deeper technical capability, adding that developing future-ready skills was essential to the industry’s ability to adapt.

“Technology is changing the way vehicles are serviced, diagnosed and repaired,” added Ferreira.

“Our skills pipeline must keep pace, ensuring that technicians and artisans have the competencies required to work safely and effectively on increasingly complex vehicles.”

Earlier this year, Trade Minister Parks Tau called on South Africa to invest in new energy vehicle (NEV) production and aftermarket support to avoid being left behind.

According to International Energy Agency reports, electric car sales exceeded 20 million in 2025, with over 70% originating in China.

With EVs representing around 5% of global car stock and sales projected to reach 55 million units by 2035, he said South Africa needs to build capacity in EV assembly, battery beneficiation, and skills.

The Minister’s list of investments includes vehicle assembly for passenger vehicles, light commercial vehicles (LCVs), buses and trucks, as well as tier-one, tier-two and tier-three component manufacturing.

Further support for South Africa’s transition to NEVs includes tooling, moulds, dies, precision engineering, electronics, software, telematics, testing, homologation and standards infrastructure.