SA automotive sector faces pressure as wage talks stall and production outlook weakens

SOUTH Africa's automotive manufacturing industry is facing renewed strain amid stalled wage negotiations between employers and unions, with industry leaders warning that 2025 production levels could fall short of last year's already subdued output.

- BANELE GININDZA

The National Association of Automotive Component and Allied Manufacturers (NAACAM) on Friday said vehicle production is unlikely to meet earlier projections, as the sector battles a downturn in exports and ongoing labour tensions.

According to NAACAM, component exports fell by 5% in 2024 compared with 2023, while vehicle assembly volumes missed 2024 targets by 11.5%. The association said the sector's recovery in 2025 "will struggle to surpass" last year's performance, given weak demand, domestic bottlenecks, and the risk of industrial action.