\n Low domestic sales of locally made cars, an influx of imports, and sluggish local content levels have triggered 12 company closures and more than 4,000 job losses in South Africa\u2019s auto industry over the past two years, according to Trade Minister Parks Tau.\n <\/p>\n
\n The automotive sector employs 115,000 people directly, including over 80,000 in component manufacturing.\n <\/p>\n
\n Tau noted that South Africa produced 515,850 vehicles last year, well short of the South Africa Automotive Masterplan 2035 target of 784,509, according to Reuters<\/a>.\n <\/p>\n \n The market, long dominated by Volkswagen, Toyota, and Mercedes-Benz, remains heavily reliant on imports, which account for 64% of vehicles sold. Localisation, or the share of locally assembled parts and labour, has stagnated at 39%, far below the 60% goal.\n <\/p>\n Export falls short<\/p>\n \n South Africa\u2019s vehicle exports<\/a> to the U.S. have tumbled in 2025, dropping 73% in the first quarter and plunging further by 80% in April and 85% in May, industry data shows.\n <\/p>\n \n The slump comes amid a 30% U.S. tariff on cars and parts, introduced in April, which has impacted the country\u2019s 28.7 billion rand ($1.64 billion) automotive export market. Some manufacturers have already lost contracts with American buyers, Trade Minister Parks Tau said.\n <\/p>\n