Minister of Small Business Development Stella Ndabeni has emphasized the importance of a conducive environment for small and medium-sized enterprises (SMEs) in the automotive industry. She notes that the sector plays a critical role in South Africa's economy, but its contribution cannot be taken for granted. In 2025, the industry contributed about 5.2% to the country's gross domestic product (GDP), comprising 3.3% from manufacturing and 1.9% from automotive-related retail.
Ndabeni was speaking at SME Acoustex, an automotive supplier in Neave Industrial Park, where she conducted an oversight visit. Acoustex is a Tier 1 automotive company that produces boot package components for the VW Polo and seat covers for the Ford Ranger. The Minister highlighted that production in motor vehicles, parts and accessories, and other transport equipment declined by 2.5% in 2025 compared to 2024.
Ndabeni stressed the need for sustained electricity supply to support small businesses, allowing them to focus on production and job preservation. She also emphasized the importance of local content in the automotive sector, with the Automotive Masterplan aiming to increase local content from approximately 39% to 60%. The Minister encouraged industry stakeholders to provide input on what is required to achieve localization.
However, imported light vehicles accounted for 69.1% of total domestic light-vehicle sales in 2025, compared to 62.7% in 2024. Ndabeni noted that this does not mean that everything currently imported should be manufactured locally, but rather that the industry should identify what can be realistically and competitively manufactured in South Africa.
Acoustex commercial director Andre Swartbooi highlighted the challenges faced by the business, including the impact of the Iran-US war on raw material costs and electricity supply issues. The company had to invest in a generator to mitigate power disruptions, but still faces problems with power dips and heat-driven production processes.
Nelson Mandela Bay Mayor Babalwa Lobishe emphasized the city's efforts to support businesses and ensure a stable electricity supply. The city has implemented strategies to prevent disruptions to industrial areas and is working with the business chamber to identify and assist struggling businesses.
Eastern Cape MEC for economic development Nonkqubela Peters noted that proper infrastructure is essential for economic growth and job creation. The province has attracted investors, but now needs to focus on retaining them to sustain jobs and industrial activities.
Key points
- Minister Stella Ndabeni calls for reliable infrastructure and competitive local manufacturing in the automotive sector.
- The automotive industry contributed about 5.2% to South Africa's GDP in 2025.
- Imported light vehicles accounted for 69.1% of total domestic light-vehicle sales in 2025.
