South Africa's automotive crossroads: Risk, reform and the EV opportunity

SOUTH Africa’s automotive industry is at a turning point.

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The automotive sector drives about 25% of East London's economy.

(I SUPPLIED)

The potential closure of a major German car plant goes beyond one factory closing.

East London would feel the immediate impact, but it would expose weaknesses across the entire sector and raise concerns about the country’s manufacturing future.

The automotive sector drives about 25% of East London's economy.

A shutdown will result in thousands of direct jobs being cut and affect suppliers, logistics, maintenance, security, and other services. Nationally, over 100,000 jobs could be at risk when the full supply chain is counted.

Investments in plants, machines, and infrastructure risk sitting idle, wasting resources. Exports would drop as cars for overseas markets stop coming from South Africa.

Worst of all, it could send a message to global investors that the country is too risky, scaring off new money not just in cars but in other manufacturing too. This is a problem for the whole nation, not just one area.

The social fallout could be severe.