VW rings alarm bells as Isuzu celebrates continental growth

Delays in policy reforms could have severe consequences

- By Edward Moleke Makwana

The CEO of Volkswagen Group Africa, Martina Biene, has described 2026 as a “make-or-break year” for the automotive industry, warning that prolonged policy uncertainty could derail future investment.

“The manufacturing automotive industry is at a crossroads,” said Biene, who also serves as president of the African Association of Automotive Manufacturers.

Speaking in Gqeberha on Wednesday, she argued that South Africa’s current automotive policy framework no longer reflects market realities.

Declining domestic sales of locally-built vehicles have increased reliance on exports — primarily to Europe - at a time when European markets are rapidly transitioning to electric vehicles, she said.

“That exposure is becoming increasingly fragile, while South Africa does not yet have a clear and affordable new-energy vehicle pathway.”