South Africa has secured investment commitments from Chinese and Indian automotive companies to upgrade semi-knocked-down (SKD) assembly plants to complete knocked-down (CKD) operations. The government supports local manufacturers with strategies to retain competitiveness and stimulate economic growth.
Companies such as Beijing Auto Industrial Corporation (BAIC) and India’s Mahindra are expanding their operations. These projects aim to increase local car production and strengthen South Africa’s position as a manufacturing hub for Africa. The initiative will create jobs, enhance local skills, and encourage technology transfer.
Trade Minister Parks Tau emphasized that the combination of government incentives and foreign investment will help South Africa meet rising demand for vehicles across the continent. Industry analysts expect the automotive sector to grow by 8% in 2025 as new plants come online.
