BRIEFING: An overview of South Africa’s automotive industry

This briefing begins by looking at the demographics of South Africa, and stability of its economy, which is set to boost growth in the motor industry. It examines the investments that vehicle manufacturers have made in South Africa already in 2005, through opening new manufacturing plants. It also highlights the potential difficulties faced by manufacturers, in a continent where used vehicle imports are stifling hopes of selling new cars. According to independent analyst Johan Cloete "Used cars, especially RHD from Japan, are being dumped all over Africa and new cars cannot compete with those prices." This briefing identifies a need to bring Africa to European standards of education, improve quality and invest in technology, so that it can successfully compete with the used car market.