Africa’s automotive landscape is undergoing a dramatic transformation. Once dominated by established European and American brands, the market is now experiencing rapid and significant change, led by a growing presence of Asian automotive manufacturers. From China, India, Japan, and South Korea, these players are reshaping the continent’s automotive supply chain, vehicle sales landscape and local manufacturing capacity.
According to Dylan Petzer, National Vice-Chairman of the Tyre, Equipment, Parts Association (TEPA), a constituent association of the Retail Motor Industry Organisation (RMI), the arrival of these Asian brands is not a slow progression but rather a fast-moving wave. “This is no longer the familiar automotive landscape we knew. It is a major realignment in how Africa moves, both literally and economically,” says Petzer.
China in particular has established itself as the dominant source of automotive aftermarket parts in South Africa. Since 2018, China has led as the top supplier, and in 2021, a striking 64% of all imported aftermarket parts into South Africa were Chinese-made. “That is not simply influence; it’s market dominance,” Petzer notes.
India has also made significant inroads, especially in the small and entry-level vehicle segments where cost-effectiveness is paramount. “Indian manufacturers have emerged as key suppliers of affordable vehicles, addressing the pressing need for budget-friendly transport options,” adds Petzer.
The Japanese and South Korean brands, long-standing players on the continent, are also being challenged to rethink their strategies in the face of growing competition. “Even the established Asian giants are having to adapt,” says Petzer.
This shift is not limited to imports. Asian manufacturers are increasingly investing in local assembly and parts production. Chinese firm BAIC, for example, has invested R11 billion in a new plant in Gqeberha. Toyota, in collaboration with Thailand’s Ogihara, is putting more than R1.1 billion into its operations in Durban, while Chinese supplier Yanfeng Plastic Omnium has invested R1 billion in Tshwane to produce components for BMW.
“These investments suggest a dual strategy,” says Petzer. “On one hand, it shows belief in the potential of Africa’s automotive market; on the other, it allows these companies to meet local content requirements and reduce import duties. It is both strategic and tactical.”
While this foreign investment brings benefits such as job creation and infrastructure development, it also tightens Asian manufacturers’ grip on the market. The challenge, according to Petzer, is finding a balance between welcoming foreign investment and ensuring local businesses are not marginalised.
Established original equipment manufacturers (OEMs) such as Ford, BMW, Volkswagen, and Toyota are responding by seeking efficiencies through partnerships and increasingly sourcing parts from Asian suppliers to remain competitive. “These companies face difficult decisions – should they prioritise cost-saving measures or continue supporting local suppliers to meet government industrial targets?” says Petzer.
Local parts manufacturers, meanwhile, are under increasing pressure. They are being squeezed by the influx of cheaper imports and the widening technology gap, especially as the global shift towards electric vehicles (EVs) accelerates.
“How does a small, independent parts manufacturer in a town like Springs compete with high-volume, high-tech factories in Asia?” asks Petzer. “This is a tough reality, and there is no simple answer.”
Despite the challenges, Petzer believes opportunities exist. “Specialisation, quality manufacturing, and early entry into the EV component market can provide local manufacturers with a competitive edge.”
Government support is vital in this environment. Initiatives such as the Automotive Investment Scheme (AIS) and the National Association of Automotive Component and Allied Manufacturers (NAACAM) programmes play an essential role in supporting local industry. “These interventions are not just helpful; they are critical for survival,” Petzer stresses. “They protect not only businesses but also local jobs and the development of crucial skills.”
Projections suggest that within the next decade, Asian brands could account for 40-45% of vehicle sales in South Africa. Their blend of affordability and improving quality makes them highly competitive.
Petzer notes that local and international OEMs will need to deepen ties with Asian suppliers and explore joint ventures and technological partnerships to maintain their market position. “The supply chain is becoming more globally integrated, and those who fail to adapt risk becoming obsolete,” he warns.
For local manufacturers, the way forward is innovation, partnership, and a clear strategy to participate in the growing EV space. “The EV transition is more than a trend – it may well define the next chapter for our local manufacturing base,” says Petzer.
Policy will play a critical role in determining outcomes. The African Continental Free Trade Area (AfCFTA) has the potential to boost intra-African trade, giving local manufacturers room to scale up. Meanwhile, South Africa’s involvement in BRICS strengthens economic ties with both China and India, influencing automotive trade dynamics.
“The real balancing act lies with policymakers. They must find ways to attract foreign investment while nurturing local industry. If done correctly, we can achieve inclusive, sustainable growth. If not, we risk eroding our industrial base.
“Africa’s automotive future is being reshaped at speed, and stakeholders at every level must prepare accordingly. The shift is not temporary, it is structural, and it is here to stay,” concluded Petzer.