National Association of Automotive Components and Allied Manufacturers (NAACAM) in a statement stated that South Africa’s new vehicle market delivered a strong performance in February 2026, with growth in vehicle sales but it does not equate to corresponding growth in component manufacturing.
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National Association of Automotive Components and Allied Manufacturers (NAACAM) in a statement stated that South Africa’s new vehicle market delivered a strong performance in February 2026, with growth in vehicle sales but it does not equate to corresponding growth in component manufacturing.
Renai Moothilal, CEO of NAACAM, said that the new vehicle market delivered a strong performance in February 2026, with 53,455 units sold, the highest February total since 2013, representing a year-on-year increase of 11.4%. “An uptick in vehicle sales is generally a positive indicator for the sector as a whole – it illustrates growing consumer spending and confidence, largely on the back of lower inflation and interest rate cuts seen in 2025. Vehicle assembly activity drives demand for locally sourced parts and components, and thus stronger sales volumes at the retail level should translate into higher production requirements upstream in the supply chain.”
Moothilal added that currently in SA, growth in vehicle sales does not equate to corresponding growth in component manufacturing. “The key variable is what proportion of domestic sales did imports account for versus locally manufactured vehicles. February 2026 data of this split is not yet available. Why does this matter: Much of the sector’s growth in production, competitiveness, and localization is dependent on increased local demand for locally produced vehicles.
Moothilal said that where imports account for a growing share of domestic vehicle sales, we see limited growth in demand for locally manufactured vehicles, thus impacting upstream supply chain demand. “Furthermore, we see that imported vehicles make little use of the domestic replacement part and accessories market, minimizing the benefit for the component sector.”
Moothilal added that reflecting on January’s import versus domestic manufacturing split, we saw a YTD 14.7% rise in imports, with 37,122 imported vehicles accounting for 73% of domestic vehicle sales. “We also saw a YTD 1.7% decline in domestic production. This has been an ongoing trend in the industry, with domestically produced vehicles’ share of the market slipping from 45% a decade ago to close to 30% in 2025.”
Moothilal said that this rising import penetration is having a negative impact on manufacturing sector growth, localization, and employment. “In 2025, we saw a 2.6% increase in total vehicle production (passenger and medium and heavy vehicles). Import growth, however, far outstripped this at 28.6% growth.”
Moothilal said that the automotive component industry is a key part of South Africa’s manufacturing base, contributing ~R205.9 billion in domestic and export sales in 2025 and supporting 81,153 direct jobs in component manufacturing alone. “It is critical that the rising surge in imports is addressed to prevent further erosion of the automotive manufacturing value chain. NAACAM believes an increase in tariffs and addressing unintended consequences of APDP where OEMs trade duty credits to vehicle importers which are undermining the competitiveness of domestically manufactured vehicles is now crucial.”
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