South Africa’s automotive sector is cruising into a perfect storm – and it’s not looking pretty.
Already hammered by international tariffs, unstable steel supply, and economic headaches at home, the industry now faces a potential knockout punch: a 10% wage hike demand from worker unions, with threats of strike action looming large.
At the heart of this battle are over 100,000 workers across petrol stations, dealerships, tyre centres, panel shops, and component manufacturers.
Represented by unions like Numsa, they’re not just chasing a pay rise – they want medical aid coverage, narrowed wage gaps, and sector-specific allowances too.
The unions argue that a CPI-based increase is a slap in the face considering Eskom’s double-digit electricity hikes and sky-high food prices.
While that unfolds, the backdrop is bleak.
The U.S. slapped South Africa with a 25% tariff on vehicle imports and 10% on all other goods.
That’s a hard hit, especially since nearly R27 billion worth of SA-made vehicles went stateside last year.
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If South Africa gets booted out of AGOA – another looming threat – then nearly half of our automotive exports to the US could be in jeopardy.
Let’s not forget the steel saga.
ArcelorMittal South Africa’s longs division – vital for auto manufacturers – is hanging by a thread.
The IDC’s R1.7 billion bailout is just a plaster over a bleeding wound.
Without urgent reforms, the countdown to shutdown will resume after August 2025.
Naamsa has raised the alarm: this isn’t just about cars – it’s about livelihoods and investment confidence.
With job losses on the line and international markets tightening, the sector is crying out for government intervention.
Right now, it feels like the auto industry is stuck in the slow lane on a road riddled with potholes – and the fuel light’s flashing red.
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