The latest data from the International Organisation of Motor Vehicle Manufacturers reveals a shifting landscape in Africa's automotive sector, with traditional leader South Africa experiencing a downturn while Morocco gains momentum.
Production Numbers Tell the Story
South Africa's automotive output declined to 599,755 vehicles in 2024, representing a 5% drop from the previous year. This performance secured the country's 20th position in global rankings but fell significantly short of the ambitious 784,509-unit production goal outlined in the South African Automotive Masterplan 2035.
Meanwhile, Morocco demonstrated robust growth with 559,645 vehicles manufactured'a 5% increase that elevated the North African nation to 23rd place globally. This upward trajectory positions Morocco as a rising force in continental vehicle production.
The Broader African ContextThe automotive industry across emerging markets continues to evolve, driven by several key factors: increasing consumer purchasing power, favorable regional trade agreements, and manufacturers' strategic pivot away from high-cost production centers toward more competitive locations.
South Africa's industrial base remains impressive, hosting manufacturing facilities forseven major international automakers, including industry giants Volkswagen, Toyota, and Mercedes-Benz. However, this established infrastructure faces mounting challenges.
Challenges Confronting South Africa's Auto Sector
The country's automotive industry confronts multiple pressures that threaten its traditional dominance. Chinese vehicle imports have surged, intensifying competition in the domestic market where local demand remains tepid. Trade Minister Parks Tau highlighted the severity of these challenges, noting that insufficient demand for domestically assembled vehicles and inadequate local content integration have resulted in 12 manufacturing plant closures and eliminated over 4,000 jobs within the past two years.
Export markets present additional obstacles. Vehicle shipments to the United States'historically South Africa's second-largest trading partner and crucial export destination'plummeted during April and May 2025 following President Trump's implementation of substantial import tariffs. These measures effectively eliminated the preferential market access previously enjoyed under the African Growth and Opportunity Act (AGOA).
Global Manufacturing Landscape
Worldwide vehicle production reached 92 million units in 2024, with China maintaining its commanding lead. Chinese manufacturers produced over 31 million vehicles'exceeding the combined output of the United States and Japan. This dominance stems from strong domestic market demand, rapid electric vehicle adoption, and expanding export capabilities. Passenger vehicles comprised the majority of Chinese production at 27.5 million units.
The United States focused heavily on commercial vehicle manufacturing, producing 9.1 million commercial units compared to just 1.4 million passenger cars. Other emerging markets including India, Mexico, and Brazil have also strengthened their positions in global rankings.
Collectively, China, the United States, and Japan represent 54% of total global vehicle production, underscoring the concentration of manufacturing capacity among these leading nations while highlighting the competitive challenges facing other producing countries like South Africa.
Staff Writer
Reporting from the front lines of the automotive industry, delivering expert analysis and the technical updates that drive the South African motor sector forward.
