(African Trade Research Center News) The South African automotive industry is strongly influenced by original manufacturers. The structure and development of the industry in the domestic and global markets are closely related to the strategies of original manufacturers. According to the Automobile Industry Export Council, South Africa represents Africa's largest car production area. In 2013, cars produced in South Africa accounted for 72% of the continent's production.
From the perspective of age structure, the African continent is the youngest continent. The population under 20 accounts for 50% of the total population. South Africa has a mixed economy of the first and third worlds and can provide cost advantages in many areas. It is considered one of the most advanced emerging markets in the world.
The main advantages of the country include its geographical advantages and economic infrastructure, natural minerals and metal resources. South Africa has 9 provinces, a population of approximately 52 million people, and 11 official languages. English is the most commonly used spoken and business language.
South Africa is expected to manufacture 1.2 million cars in 2020. According to statistics in 2012, South Africa's OEM parts and components reached 5 billion US dollars, while the total consumption of imported auto parts from Germany, Taiwan, Japan, the United States and China was about 1.5 billion US dollars. In terms of opportunities, the Automotive Industry Export Association (AIEC) commented that the South African automotive industry has significant advantages compared to many other countries. South Africa’s eight commercial port facilities expand automobile exports and imports, making this country a trading center in sub-Saharan Africa. It also has a logistics system that can meet the needs of serving Europe, Asia and the United States.
South Africa's automobile manufacturing is mainly concentrated in 3 of the nine provinces, namely Gauteng, Eastern Cape and KwaZulu-Natal.
Gauteng has 150 OEM parts suppliers and factories, three OEM manufacturing plants: South Africa BMW, South Africa Renault, South Africa's Ford Motor Company.
The Eastern Cape has a comprehensive manufacturing base for the automotive industry. The province is also the logistics area of 4 airports (Port Elizabeth, East London, Umtata and Bissau), 3 ports (Port Elizabeth, Port Coha and East London) and two industrial development zones. Coha Port has the largest industrial zone in South Africa, and the East London Industrial Zone also has an automobile supplier industrial park. There are 100 OEM parts suppliers and factories in the Eastern Cape. Four major automakers: South Africa Volkswagen Group, South Africa Mercedes-Benz (mercedes-benz), South Africa General Motors (General Motors) and Ford Motor Company Africa Engine factory in the south.
KwaZulu-Natal is South Africa’s second largest economy after Gauteng, and the Durban Automobile Cluster is one of the four trade and investment opportunities promoted by provincial government agencies in the province. Toyota South Africa is the only OEM manufacturing plant in the province and there are 80 OEM parts suppliers.
500 auto parts suppliers produce a variety of original equipment components, parts and accessories, including 120 Tier 1 suppliers.
According to data from the National Automobile Manufacturers Association of South Africa (NAAMSA), South Africa's total motor vehicle production in 2013 was 545,913 units, reaching 591,000 units at the end of 2014.
OEMs in South Africa focus on one or two high-capacity development models, a complementary hybrid model that gains economies of scale by exporting other goods and importing these models instead of producing in the country. Car manufacturers in 2013 include: BMW 3-series 4-doors, GM Chevrolet spark plugs, Mercedes-Benz C-series-doors, Nissan Liwei Tiida, Renault Automobiles, Toyota Corolla 4-series-doors, Volkswagen Polo new and old series.
According to reports, South African Toyota has taken the lead in the South African auto market for 36 consecutive years since 1980. In 2013, Toyota accounted for 9.5% of the overall market share, followed by South African Volkswagen Group, South African Ford and General Motors.
The Executive Manager of the Automotive Industry Export Council (AIEC), Dr. Norman Lamprecht, said that South Africa has begun to develop into an important part of the international automotive supply chain, and the importance of trade with China, Thailand, India and South Korea has been escalating. However, the European Union is still the world's largest trading partner of South Africa's automotive industry, accounting for 34.2% of exports of the automotive industry in 2013.
According to the analysis of the African Trade Research Center, South Africa, which has gradually developed into an important part of the international automotive supply chain, represents Africa’s largest automotive production area. It has high production capacity in automotive manufacturing and parts OEM, but currently South Africa domestic parts OEM production capacity is not yet self-sufficient, and partly depends on imports from Germany, China, Taiwan, Japan and the United States. As South African OEM manufacturers generally import auto parts models instead of producing them in the country, South Africa's large-scale auto parts OEM market also shows high demand for auto parts model products. With the further development of the South African auto market, Chinese auto companies have a bright prospect for investing in the South African auto market.
South African Die & Mould Machinery Manufacturing Association
