Auto industry buckles amid US tariffs and shifting South African market trends

THE South African automotive industry faces a tough operating environment but remains focused on long-term success, Jeff Gable, Head of FIC Research at Absa CIB, told delegates at Naamsa Auto Week in Gqeberha this week.

- YOGASHEN PILLAY

JEFF GABLE-- Head of FIC Research at Absa CIB at Naamsa autoweek IN Gqeberha on Wednesday said that the automotive industry is a sector under strain but focused on success.

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Gable said shifting consumer preferences are reshaping the domestic market.

“Households also continue to turn towards SUVs, and so local production of these vehicles has been strong, whilst sedan sales are under a lot of pressure,” Gable said.

In the new energy segment, Gable said mild hybrids have gained traction with local buyers due to affordable price points, while full electric and plugin hybrid vehicles remain out of reach for most consumers.

On the manufacturing side, Gable warned that South African Original Equipment Manufacturers (OEMs) face mounting challenges.

“For those SA firms that face off to the US for some of the export market, it’s clear that the Trump administration has a focus on bringing auto-sector jobs back to America,” he said.