As part of BMA’s research unit, our team participated in a Sector Studies Workshop, hosted by the Gauteng City-Region Observatory (GCRO). Feedback was provided on the Gauteng Automotive sector that the GCRO had commissioned.
The study analysed the province’s automotive industry in order to better understand its current state, challenges, and opportunities, and to identify interventions required to support growth. The project entailed assessing available data and engagements with various stakeholders from across the regional automotive value chain to unpack the major strengths, weaknesses, opportunities, and threats (SWOT).
The study verified that the importance of the Gauteng automotive sector as a bedrock of the South African automotive industry. As the country’s economic powerhouse, Gauteng is home to a substantial portion of the domestic automotive industry. This includes three of the country’s major Original Equipment Manufacturers (OEMs), namely, Ford, BMW and Nissan, and the majority of automotive component manufacturers (estimated at around 200), as well as specialist service providers. As a result, the province contributes significantly to national vehicle production, employment, and exports. In 2023, the Gauteng region accounted for 30% of all local light vehicles (LVs) produced, and 33% of all LV exports. The province is also estimated to represent around 37% of all persons employed by the local OEMs and component manufacturers in South Africa.
As a result of the analysis and stakeholder engagements undertaken, the study highlighted the crucial role of government support, effective stakeholder co-ordination, and strategic interventions in fostering the growth of the region’s automotive industry. In addition, developing and maintaining critical infrastructure and supporting the growth of Tier 2 and Tier 3 suppliers also emerged as actionable recommendations.
If the Gauteng can address identified challenges and leverage opportunities, the region can build on its strong automotive foundations and better position itself as the leader in South Africa’s automotive sector going forward. The recommendations from the study subsequently provide a guideline to ensure the automotive sector’s long-term sustainability and competitiveness in the province.