South Africa’s automotive industry is being tested like never before. As global competition intensifies and technology reshapes mobility at speed, the sector now faces a dual challenge: a deepening skills crisis and relentless technological disruption.
These themes took centre stage at Automechanika Johannesburg’s first CEO Breakfast of 2026, hosted at the South African German Chamber of Commerce, where industry leaders issued a clear call to action to adapt, collaborate and stay competitive.
The breakfast set the tone for a year of engagement, bringing together executives, analysts and financiers to examine what it will take for the automotive value chain to remain resilient and future ready.
Caption: Automotive leaders and decision-makers gather at the Automechanika Johannesburg CEO Breakfast 2026 to tackle skills shortages and fast-moving technological change.
Skills crisis and structural shifts reshaping the Automotive landscape
In his first official address as CEO of AHK Southern Africa, Maximilian Butek highlighted the strategic strength of South Africa’s automotive ecosystem, while cautioning that these advantages must be actively protected.
“South Africa’s established supplier network and deeply integrated supply chain are real competitive advantages in an increasingly crowded global market,” he said. “We must actively promote and protect this ecosystem as a differentiator.”
That optimism was tempered by a stark assessment from Ipeleng Mabusela, CEO of the Retail Motor Industry Organisation RMI, who warned that the industry’s skills shortage is reaching critical levels. Drawing on industry data, he pointed to a 31 percent decline in artisans over the past decade despite increased apprentice intake.
“Mobility cannot be realised without addressing skills,” he implored.
Mabusela emphasised the sector’s economic importance, noting that auto retail and the aftermarket account for around 70 percent of jobs in the automotive value chain, with aftermarket employment growing at 1.2 percent compound annual growth from 2020 to 2024. Addressing the challenge, he said, will require collaboration with intent across industry, government and training institutions.
Paul Roux de Kock, Chief Analytics Officer at Lightstone, unpacked the changing dynamics of South Africa’s light vehicle market, highlighting post COVID recovery alongside intensifying competition, pricing pressures and shifting consumer demand.
“The market is getting more crowded and more complex,” he said. “Businesses need to track shifts in pricing, brand share and supply origins in order to compete effectively”.
Looking ahead, Greg Cress, Principal Director Automotive and eMobility at Accenture South Africa, outlined the forces reshaping the global automotive industry, from electrification to software defined vehicles.
“The global EV trend is a call to action for South African OEMs, who must secure NEV product lines,” he stated.
He pointed to advanced driver assistance systems, autonomy and connectivity as immediate opportunities, noting that over the air software updates are becoming standard, with more than 75 percent of new vehicle models expected to offer this capability.
Support for the transition was reinforced by Tagatso Sello, Senior Manager of Manufacturing at Nedbank, who stressed the importance of flexible, sector specific financial solutions.
“The transformation underway in automotive demands flexible, sector appropriate support, not one size fits all approaches,” he suggested.
Concluding the session, Michael Dehn, Managing Director of Messe Frankfurt South Africa, emphasised the importance of deeper collaboration to navigate disruption.
“The challenges we face today demand unprecedented collaboration,” he said. “Our 2026 engagement strategy, comprising quarterly CEO breakfasts and six regional roadshows across Southern and East Africa, creates platforms for industry leaders to forge partnerships, share intelligence and build resilience through greater connection.”