Oct 07, 2025 naamsa, The Automotive Business Council, South African Automotive Week 2025, Billy Tom, Mikel Mabasa, OICA (International Organisation of Automobile Manufacturers)
SAAW 2025 – ‘Reimagining the future together’
Gqeberha recently hosted the fourth edition of the naamsa: The Automotive Business Council’s South African Automotive Week 2025, which attracted a wide range of the automotive industry’s business and thought leaders to congregate in the founding home of naamsa 90 years ago. The naamsa/The Automotive Business Council relocated their offices to Pretoria in 1983.
With the theme ‘Reimaging the future together’ the addresses, thought provoking presentations and panel discussions were split over three independent stage’s (PRESIDENTIAL STAGE, INNOVATION STAGE & naamsa NINETY STAGE), adjacent to the exhibition area, and culminated with plant tours on the final day. Providing delegates and visitors the opportunity to select relevant subjects specific to their interest to attend.
A strong focus on the current state of the local automotive industry and its role within both the African Continent as well as the global automotive industry featured as the backbone most of the presentations and panel discussions, whilst highlighting the industry’s 5,2% contribution to SA’s GDP, the economy and strength in automotive related exports (R 268,8 billion) despite a small contraction of R 2 billion in 2024. Although vehicle exports declined by 8 965 units to 390 844 in 2024, the local manufacturers have expanded their export markets to an impressive 155 destination countries globally. 29 of these countries recorded export values in excess of R 1 billion, while an additional 39 of these destination countries have doubled their previous export values.
In his opening address, acting Premier, Mlungisi Mvoko, paid tribute to naamsa/The Automotive Business Council for consistently driving the industry forward, through helping shape policy and ensuring the local industry’s integration into global value chains - reflected in our export figures, which made up in-excess of 40% of SA’s total non-mining and agriculture exports for 2024. The industry continues to invest in itself with vehicle and component manufacturers investing more than 10 billion in 2024. Mvoko praised the industry for its resilience in the face of the challenges being faced both domestically and internationally.
Minister Parks Tau essentially repeated all he had said a month ago at the NAACAM Show, whilst side stepping the issue of the topical US trade tariffs, except to say that negotiations were ongoing in this regard and in responding to Irvin Jim’s questioning of the large number of Asian brands allowed to operate in the country without genuine local CBU or CKD plants – which would beneficiate the employment situation and economy directly, Minister Tau cryptically said that after recent discussions, news from the Indian and Chinese front would be forthcoming in the near future. At the conclusion of his address the naamsa board invited him and other dignitaries to remain on stage for the celebration of its ninetieth birthday and cake cutting ceremony before his official walk about through the exhibitor stands.
In line with the ‘Reimaging the future together’ theme there was a strong thread of needing to realign the industry’s path forwards in this time of global transition, whilst clearly identifying the challenges and potential opportunities that come with the global move to new energy vehicles. A number of speakers addressed the domestic environment - with the energy and logistics challenges presenting immediate threats to the industry and requiring urgent collaboration between Government and the private sector to identify, address and commit to resolving these issues as a priority in order to prevent further plant closures, job losses and maintain the industry’s footprint in the global supply chain. South Africa’s share of global vehicle production has already fallen by 0.02% to 0.65% in 2024 – placing Government’s SAAM 2035 targets of a 1% share by 2035 at risk.
On the global front it was agreed that Geopolitical challenges have added to the complexity of the domestic automotive industry. While most agree that African Continent’s market will require ICE vehicles for a minimum of the next 10 years, due to the lack of infrastructure and the distances being travelled – there is an urgent need to transition into manufacturing of New Electric Vehicles (NEV’s) and/or the components they require, in order to continue to play our part in the global supply chain.
In his address, current naamsa/The Automotive Business Council president Billy Tom proudly announced that naamsa CEO, Mikel Mabasa, has been nominated to OICA (International Organisation of Automobile Manufacturers) to serve as a permanent member. This achievement is significant in that allows the SA Auto industry to participate and help determine the pathway of the global automotive industry whilst ensuring that the continent has an inclusivity in the future of mobility.
In their ‘State of the Industry’ presentations, Billy Tom, naamsa President; Thato Magasa, vice President – Retailing OEM’s; Peter van Binsbergen, vice President – Manufacturing OEM’s; Jan Aichger, vice President – MHCV OEM’s; Neale Hill, naamsa Immediate Past President, each reviewed their respective industry sectors, the APDP2 and SAAM 2035 and the envisioned future of the SA Auto Industry.
Hill, believes that within the South African and African Continent context it’s not simply a case of click, copy and pasting the transitions from other regions and countries for local manufacturers. The current targets for the banning of ICE vehicles to important export markets in the UK and EU by 2035, are a real concern. Currently none of the local manufacturers are assembling Battery Electric Vehicles (BEV’s), although a number are producing Hybrid vehicles, and the market conversion is on the rise, the demand is still low.
Hill emphasized the potential advantages held by South Africa and the African continent, with their mineral resources – including Copper, Lithium and the majority of the world’s Manganese and Platinum. Hill also called for collaboration between government and industry in SA to develop the framework needed to allow the country to become a key player in the global EV value chain. He continued with a warning to delegates of the concern that the SA industry is falling behind our continental competitors forward thinking industrial and automotive policies. In addition, concensus was that African governments need to ultilise AfCFTA (African Continent Free Trade Agreement) to enable our neighbours to contribute to and become integral members of that supply chain. Hill concluded saying “We must act now before it’s too late.”
President & CEO, Toyota South Africa Motors, Andrew Kirby’s presentation on ‘The South African Automotive industry as a catalyst for (Re)-industrialization’ spotlighted SA’s industrial trends and an overview of the Auto Sector post 2000 before identifying and discussing ‘the 4 forces at SA’s crossroads.’ Kirby then concluded with the \
‘concrete actions needed by the industry towards a high road’ and the envisioned benefits of both a 20% increase in domestic production and a 20% increase in vehicle exports to the SA economy.
Professor Justin BARNES, Director: African Industrialisation Services, gave his views on ‘Government – Industry Symbiosis: the automotive’s strategic role in SA’s economy,’ before joining the panel alongside Mike Whitfield, CEO Stellantis; Ugo Frigerio, President NAACAM and Miyelani Maluleke, Senior Economist ABSA Corp & Investment banking, to discuss the symbiotic relationship between government and the local automotive industry with a view to strengthen them for the future of the industry.
At the conclusion of two days of presentations and discussions, the following is clear;
· The South African automotive industry has a depth of manufacturing expertise
· It is capable of producing export quality vehicles and distributing them for worldwide consumption
· We have a strategic mineral wealth – that needs to be beneficiated to enable us to play our part in the global shift to NEV’s
· Geographically, SA is well positioned to be a leader in the mobility aspirations for the ‘African new frontier’
· Government and Industry need to deepen the collaboration and speed up the implementation of policy in order to take advantage of the available opportunities
· The time for talk is over – unless we act now, we might very well end up with an Australian scenario.
And finally, a word from some of the visiting delegates from neighbouring countries – ‘The plant visits were impactful and it is vitally important for us to see what direction the South African Automotive Industry is considering in order for us to advise our own governments on potential policy changes that will align with the region and continent’s aspirations and contribute to the global value chain.
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