South Africa has a booming motor industry in terms of the manufacturing of vehicles boasting the largest manufacturing sector in the country’s economy. Not only does this allow an increased gross domestic product (GDP), but it also creates a large opportunity for employment. The constant advancements of the industry provide a great potential for growth for the economy. Read more about South Africa’s motor industry below:
Brands manufactured in South Africa
Out of all the countries in Africa, South Africa is the manufacturer of most major brands. These brands include BMW, Ford, Mercedes-Benz, Toyota, Volkswagen and more. The manufacturing of these brands in South Africa has a large impact on the South African GDP.
The motor industry contributes approximately 6.8% to South Africa’s GDP, with around 4.3% of the contribution consisting of the manufacturing of vehicles and the other 2.5% being the retail. In terms of the exports of these vehicles and their parts, in 2018 the motor industry contributed to 14.3% of South Africa’s total exports. In the employment sector of the motor industry, over 450,000 jobs are occupied with over 100,000 jobs in the manufacturing sector.
The covid-19 impact
Unfortunately, much like many other industries, the motor industry is not prone to the negative effects of covid-19. Due to the lockdown, the export sector of the South African motor industry has suffered a large downfall, decreasing by almost 22%. However, this impact is not unlike the global impact in the industry. Time will tell just how severe this impact is!