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The automotive industry in South Africa is showing optimistic signs of growth and venturing into the New Electricity Vehicle market. Motor sales have also increased, as such; President Cyril Ramaphosa says South Africa is perfectly positioned as a key global manufacturing base for the mobility of the future.
According to StatsSA, the motor industry has recorded an increase in sales by 4,7% year-on-year in May 2025. The positive contributors include:
Used vehicle sales (9,6% and contributing 1,9 percentage points);
Sales of accessories (6,6% and contributing 1,3 percentage points);
Fuel sales (4,8% and contributing 1,3 percentage points); and
New vehicle sales (5,2% and contributing 1,2 percentage points).
BMW Group South Africa also reported positive performance in the second quarter of 2025, with increased sales of electric cars. According to BMW, in the first half of the year, the company delivered a total of 1,207,388 vehicles (-0.5%). Electrified vehicles saw significant sales growth compared to the previous year. With 318,949 fully-electric and plug-in hybrid vehicles delivered to customers, the BMW Group grew its sales by +18.5% in the first half of 2025.
Speaking at the launch of the BMW X3 Plug-in hybrid at the Rosslyn plant in Tshwane, President Cyril Ramaphosa said The automotive sector contributes approximately 4,9 percent to the country’s GDP. He said the sector supports more than 115,000 direct manufacturing jobs and over half a million across the value chain.
Pointing out the strength of the industry in global markets, Ramaphosa said South Africa is the 22nd largest vehicle exporter globally, with its main export destinations being the European Union, the US and the UK.
The President also pointed out that Africa is also viable market to venture into as it is a growing export market, particularly within the SADC region.
“As a country, we have positioned ourselves as a globally competitive destination for automotive manufacturing, and the BMW Group has been an integral part of our journey. A number of world-class vehicles are manufactured right here at this plant, including both ICE and hybrid models from the BMW X family. And now we have reached another milestone with the production of the BMW X3 Plug-in Hybrid Electric Vehicle.
The shift to green mobility and electrification in vehicle production is in line with commitments by countries to reduce emissions and support the transition to a low-carbon, climate resilient global economy.We are greatly encouraged by this milestone reached by the BMW Group.
As the transition to battery electric vehicles, plug-in hybrids and hydrogen mobility gathers momentum, South Africa is perfectly positioned as a key global manufacturing base for the mobility of the future,” said President Ramaphosa.
Ramaphosa said the global shift to clean vehicles presents opportunities for the local component manufacturing sector, whose focus has been on ICE components.
“With our significant reserves of critical minerals, we must become a hub for processing and beneficiation. We are finalising targeted incentives for battery cell localisation, EV component manufacture, clean mobility research and design, and critical mineral beneficiation.
The recent announcements on tariffs by the United States, an important market for our vehicle exports, further underscores the need to diversify our export base and accelerate domestic value creation,” he said.
