South Africa imported approximately R107.5 billion worth of replacement vehicle parts in 2025, highlighting a significant opportunity to expand domestic manufacturing, create employment and strengthen the country’s automotive aftermarket industry.
Speaking at the Automechanika Johannesburg 2026 CEO Breakfast on 27 October, Deputy Trade Minister John Steenhuisen called for increased investment in localisation, skills development and export expansion to unlock the sector’s economic potential.
Automotive Aftermarket Offers Major Economic Opportunities
Steenhuisen described the automotive aftermarket as an important contributor to South Africa’s industrial development, economic resilience and employment.
The sector traded approximately R933 billion in 2025 and contributed R202.6 billion to the country’s gross domestic product (GDP), according to figures cited at the event.
South Africa’s automotive manufacturing sector supports more than 310,000 jobs, representing approximately 70% of automotive employment, across more than 23,000 local businesses.
Steenhuisen emphasised that the businesses and services supporting vehicle maintenance and repairs are central to the country’s industrial capacity and economic growth.
Vehicle Age Creates Demand for Locally Produced Parts
South Africa has approximately 13 million vehicles on its roads, with an average age of nearly 11 years. Around 76% of these vehicles are outside their warranty periods, creating sustained demand for replacement parts and aftermarket services.
The approximately R107.5 billion spent on imported replacement components in 2025 represents a potential market for local manufacturers capable of producing competitive, high-quality automotive parts.
According to Steenhuisen, increasing localisation could help retain more value within the domestic economy, reduce foreign exchange outflows and create additional employment opportunities.
He also argued that South Africa already has much of the engineering expertise, distribution infrastructure and industrial capability required to become a leading automotive aftermarket hub for the African continent.
Skills Shortages Remain a Challenge
Despite the opportunities, the industry faces a shortage of qualified automotive artisans. Steenhuisen raised concern that South Africa has nearly 31% fewer qualified automotive artisans than in 2009.
He called for closer collaboration between government, industry and training institutions to develop the skills required to support local manufacturing and the changing needs of the automotive sector.
Emerging areas requiring investment in skills include electric vehicle manufacturing and maintenance, advanced vehicle diagnostics and artificial intelligence-enabled systems.
Developing these capabilities will be important as vehicle technologies evolve and the industry adapts to new requirements for servicing, repairs and component production.
From Investment Announcements to Implementation
Steenhuisen urged stakeholders to move beyond investment commitments towards practical implementation, with localisation extending throughout the automotive value chain rather than remaining limited to vehicle assembly.
Expanding domestic replacement-parts manufacturing could create opportunities for component suppliers, small and medium-sized enterprises, technical training providers and businesses serving regional export markets.
With substantial domestic demand and an established automotive industry, South Africa has an opportunity to strengthen its position in the African aftermarket. Realising that potential will depend on investment, skills development, competitive local production and effective cooperation between government and industry.
