South Africa’s automotive aftermarket traded roughly R933 billion in 2025 and contributed R202.6 billion to GDP, and Trade, Industry and Competition Deputy Minister John Steenhuisen used those figures to make an investment case to industry leaders gathered in Midrand. Speaking at the Automechanika Johannesburg 2026 CEO Breakfast at the Gallagher Convention Centre, he called for greater localisation, investment and job creation in the aftermarket, positioning the sector as a significant driver of economic growth, industrial development and employment.
The scale of the prize is clearest in the import bill. South Africa imported approximately R107.5 billion in replacement parts in 2025, an outflow that Steenhuisen framed as a substantial opportunity to strengthen domestic manufacturing, retain economic value and create employment. With around 13 million vehicles on the country’s roads, averaging almost 11 years in age, and 76% outside their warranty periods, demand for replacement parts is structural rather than cyclical. That gives operators and investors a long-running addressable market.
“Every additional percentage point of localisation in replacement parts represents jobs created, industrial capability strengthened, foreign exchange retained, and value added within South Africa,” he said.
The employment footprint underscores the sector’s weight in the broader economy. The aftermarket supports more than 310,000 jobs, approximately 70% of automotive employment, across more than 23,000 businesses, predominantly small and medium-sized enterprises. For capital providers and market participants, that structure matters: the value in this industry sits not only in large manufacturers but in a dense network of smaller operators whose viability depends on policy, demand and access to skills.
Steenhuisen was explicit that these are not marginal activities. “These are not peripheral activities. They are central to South Africa’s economic resilience, industrial capability, and mobility,” he said.
His remarks, reported by the South African Government News Agency at https://www.sanews.gov.za/south-africa/steenhuisen-calls-greater-localisation-investment-and-job-creation, also carried implications for policy design. He stressed that the ongoing review of the Automotive Production and Development Programme, known as APDP2, should consider the broader automotive value chain rather than stopping at vehicle manufacturing, extending instead to the businesses that support vehicles throughout their operational lives. For firms across the aftermarket, the shape of that review could determine how incentives, risk and return are distributed across the chain.
Trade is the second pillar of the opportunity. Steenhuisen identified the African Continental Free Trade Area as a route to expand South African exports of replacement parts, remanufactured components and specialised automotive services. He argued that the country has the engineering expertise, established distribution networks and industrial capabilities to become a leading automotive aftermarket hub for Africa, an ambition that would place South African firms at the centre of continental supply chains for parts and services.
Skills present a constraint on that ambition, and Steenhuisen flagged it directly. South Africa has approximately 31% fewer qualified automotive artisans than in 2009, even as apprenticeship numbers increase. He called for stronger collaboration between government, industry and training institutions to prepare young South Africans for emerging technologies, including electric vehicles, advanced diagnostics and artificial intelligence-enabled systems. For employers, the shortfall in qualified artisans is a direct operating risk, and closing it is a precondition for any serious localisation or export strategy.
He also drew attention to the economics of vehicle maintenance and road safety. Road crashes cost South Africa almost R200 billion in 2025, equivalent to approximately 2.8% of GDP, a figure he linked to the economic benefits of proper vehicle upkeep.
The Deputy Minister closed by pressing for delivery rather than promises. “South Africa must move from investment announcements to practical implementation,” he said. He reaffirmed his commitment to working with industry to remove barriers to growth, strengthen competitiveness, support small businesses and unlock employment opportunities.
“Localisation must extend beyond the factory gate. It must include the businesses that keep South Africans moving every day,” he said. For investors and operators in the aftermarket, the message was that the sector’s scale, R933 billion in trade and more than 310,000 jobs, should be matched by policy attention and capital flowing into local production, skills and export capacity. Whether the APDP2 review delivers that alignment remains the open question for the year ahead.