The Automobile Association has warned that South Africa’s automotive industry risks losing its manufacturing base amid rising Chinese vehicle imports, mounting transport costs and policy indecision, urging industry leaders to demand greater accountability from government
South Africa’s automotive industry is approaching a defining crossroads, with growing pressure from vehicle imports, rising fuel costs and a lack of decisive government intervention threatening the country’s manufacturing capabilities.
This was the warning delivered by Bobby, in a keynote address at Automechanika, where he challenged automotive industry leaders to stop remaining silent on issues affecting the sector and the wider economy.
According to Bobby, the industry does not lack knowledge of the challenges confronting it. Rather, it lacks the willingness to speak openly about them.
“This industry doesn’t have a knowledge problem. It has a silence problem,” he said, arguing that manufacturers, suppliers, fleet owners and other industry stakeholders were often aware of the problems but reluctant to challenge those responsible for addressing them.
One of his key concerns was the growing presence of Chinese vehicle brands in South Africa, which now account for more than 19% of new vehicle sales, according to figures cited in his address.
While acknowledging the engineering capabilities and innovation of Chinese manufacturers, Bobby questioned whether adequate consumer protection measures were being applied to imported vehicles, particularly regarding safety recalls and vehicle compliance.
He pointed to concerns raised by consumer journalist Wendy Knowler about the National Consumer Commission’s vehicle recall registers, as well as what he described as silent recalls involving Chery vehicles.
Among the examples he highlighted was a brake pipe campaign affecting nearly 3,500 Chery Tiggo 8 Pro Max vehicles. The reported defect involved a brake clip that could fail, allowing the brake line to move against the turbocharger’s hot exhaust housing, creating a risk of brake failure and fire.
He also referred to concerns raised by the Automobile Association about the payload ratings of Jetour’s T1 and T2 models, arguing that changes to their advertised payload capacity had not been supported by corresponding mechanical upgrades.
Bobby warned that South Africa should also pay attention to developments in Thailand, where the rapid growth of Chinese electric vehicle imports had placed pressure on domestic vehicle manufacturers and component suppliers.
He cautioned that without stronger local homologation requirements, transparent recall procedures and policies that protect domestic industrial value, South Africa could face similar consequences.
The rising cost of mobility
Beyond vehicle imports, Bobby identified the affordability of mobility as another major challenge, particularly for lower-income households.
He argued that transport costs were placing an unsustainable burden on working families, with commuters spending a significant portion of their income travelling to and from work.
Citing figures from the Pietermaritzburg Economic Justice and Dignity Group, he noted that workers earning the national minimum wage could spend approximately R1,520 a month on taxi fares alone.
He said the financial pressure was forcing households to make difficult choices between transport, food and other basic necessities.
“Mobility is freedom. Mobility is access to employment, education, healthcare, and economic dignity,” he said.
He also questioned the government’s approach to public transport funding, particularly the absence of direct operational subsidies for the minibus taxi industry, which he said carries more than 80% of public transport commuters in the country.
By contrast, he criticised the billions spent on Gautrain patronage guarantees, arguing that public funding should be directed towards mass commuter transport systems that serve the broader population.
Policy uncertainty threatens manufacturing
Bobby’s third concern centred on policy indecision and its implications for South Africa’s domestic automotive manufacturing industry.
He argued that government was attempting to pursue local manufacturing while simultaneously allowing market conditions that could undermine the country’s industrial capacity.
He also highlighted logistical constraints at ports and on the rail network, which continue to place pressure on vehicle manufacturers and exporters.
According to Bobby, South Africa must make a clear decision about whether it intends to remain a vehicle manufacturing and exporting hub or transition towards becoming an import-and-retail market.
He warned that once component manufacturers, skilled artisans and suppliers leave the country, rebuilding the industrial base would be extremely difficult.
However, he placed some responsibility on the private sector, arguing that industry leaders had become too cautious about challenging government.
“Silence is not diplomacy. Silence is complicity,” he said.
He called on the National Consumer Commission and the National Regulator for Compulsory Specifications to strengthen vehicle safety oversight, including public recalls and local verification of imported vehicles.
He also urged the Department of Transport and National Treasury to reconsider public transport spending priorities and review fuel-related levies that continue to place pressure on transport operators and commuters.
His message to the automotive industry was that stakeholders could no longer wait for government or another external intervention to resolve the sector’s challenges.
“The industry has the economic leverage. The technical knowledge. The institutional voice,” he said.
Concluding his address, Bobby called on manufacturers, dealers, component suppliers and aftermarket businesses to take collective responsibility for the industry’s future.
“No one will save us. We must save ourselves,” he said.