South Africa's automotive industry faces challenges due to job losses and the closure of companies

On Wednesday, the trade minister announced that the low domestic sales of locally manufactured vehicles, combined with a rise in imports and limited local content, have led to the shutdown of 12 companies and the loss of over 4,000 jobs in the South African automotive industry over the last two years. Minister Parks Tau told participants at an auto parts conference that South Africa, a market traditionally led by brands like Volkswagen (VOWG.DE), Toyota (7203.T), and Mercedes-Benz (MBGn.DE), sold 515,850 locally produced vehicles last year. This number falls significantly short of the target set by the South Africa Automotive Masterplan 2035, which aims for 784,509 units.