By South Africa’s automotive aftermarket stands as a powerhouse of industrial capability, economic resilience, and employment. Speaking at the Automechanika Johannesburg 2026 CEO Breakfast held at the Gallagher Convention Centre in Midrand, Deputy Minister of Trade, Industry and Competition John Steenhuisen issued a resounding call for deeper localisation, targeted investment, skills development, and export expansion across the sector.
The Deputy Minister underscored the immense economic weight of the aftermarket, which traded approximately R933 billion in 2025 and contributed R202.6 billion to the national Gross Domestic Product (GDP). Far from being peripheral, these operations form the bedrock of the country’s mobility and industrial framework.
Currently, the sector anchors more than 310,000 jobs—representing roughly 70% of total automotive employment—distributed across more than 23,000 businesses, the vast majority of which are small and medium-sized enterprises (SMEs).
Capitalising on the Replacement Parts Market
A central theme of Steenhuisen’s address was the untapped potential of domestic manufacturing, particularly regarding replacement parts. With roughly 13 million vehicles navigating South African roads, possessing an average age of nearly 11 years and 76% operating outside their warranty periods, the demand for servicing and components is immense.
Despite this robust domestic demand, South Africa imported approximately R107.5 billion in replacement parts in 2025. This heavy reliance on imports highlights a clear structural gap—and a golden opportunity—to ramp up local manufacturing, retain critical foreign exchange, and generate sustainable 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,” Steenhuisen stated.
To support this transition, he advocated that the ongoing review of the Automotive Production and Development Programme (APDP2) broaden its scope beyond primary vehicle assembly to encompass the entire operational life cycle of vehicles.
Unlocking Continental Trade and Skills
Looking beyond domestic borders, Steenhuisen positioned the African Continental Free Trade Area (AfCFTA) as a vital vehicle for growth. He noted that South Africa possesses the necessary engineering expertise, robust distribution networks, and industrial sophistication to establish itself as the premier automotive aftermarket hub for the continent, driving exports in replacement parts, remanufactured components, and specialized services.
However, realizing this ambition requires addressing critical human capital bottlenecks. Steenhuisen voiced concern over a persistent skills gap, pointing out that South Africa has roughly 31% fewer qualified automotive artisans than it did in 2009, despite rising numbers of apprenticeships.
He urged closer collaboration between government, industry stakeholders, and training institutions to equip young South Africans for a rapidly evolving technological landscape characterized by electric vehicles, advanced diagnostics, and artificial intelligence-enabled systems.
Road Safety and Economic Impact
The Deputy Minister also linked industrial performance to broader macroeconomic indicators, highlighting the heavy toll of road crashes. With accidents costing South Africa nearly R200 billion in 2025—equivalent to approximately 2.8% of GDP—standardized vehicle maintenance and road safety are paramount economic imperatives.
Concluding his address, Steenhuisen stressed the urgent need to transition from policy rhetoric to tangible outcomes. “South Africa must move from investment announcements to practical implementation,” he asserted, reaffirming the government’s dedication to removing regulatory barriers, supporting SMEs, and ensuring that industrial policy reaches every corner of the automotive value chain.
