Industry leaders at the 2025 Automechanika Johannesburg CEO Breakfast discussed strategies for resilience, tech innovation, and regional growth amid US trade tariffs and evolving market dynamics.
The 2025 finale of the Automechanika Johannesburg CEO Breakfast, which took place at the famous Kyalami Grand Prix Circuit, pulled together an impressive lineup of senior leaders from the automotive world. The goal? To talk through some of the biggest challenges and opportunities facing South Africa’s auto sector — especially in light of the complicated global trade environment we’re currently navigating. As the Festival of Motoring was in full swing in the background, this event turned into a crucial space for strategic discussions about how the industry can transform, stay resilient, and innovate moving forward.
Kicking off the session, Victor Radebe, who’s the Chief Director of the Programme Management Office for Gauteng’s Premier, emphasized how important it is to combine transformation efforts with resilience if the sector is to stay ahead in the future. Honestly, his remarks set a solid tone for the whole day, prompting a deep dive into several key themes shaping our industry right now.
Sandile Ntseoane, heading up the Southern African Vehicle Rental and Leasing Association (SAVRALA), painted a picture of the rental and leasing sector as a crucial yet sometimes overlooked driver of mobility in South Africa. Post-pandemic, the industry has found its footing again, boosted by a rebound in tourism that’s led to increased fleet numbers. He also pointed out that customer preferences are changing — folks tend to prefer shorter lease periods these days, and there's a growing cautiousness around adopting electric vehicles. Interestingly enough, he noted how advances in telematics and artificial intelligence are having a real impact on fleet management, signaling some pretty major tech shifts in the sector.
The conversation didn’t shy away from external hurdles either. Duane Newman, a partner at EY South Africa, provided a comprehensive analysis of how US trade tariffs — enacted under the previous American administration — are affecting us. The tariffs, including a 25% duty on automotive products and 50% on steel and aluminum, create some pretty tough obstacles for South African exporters. He explained that these measures could lead to losses of around $1.4 to $1.6 billion annually, and, more worryingly, might mean between 50,000 and 100,000 jobs could be at risk across the economy. To combat these challenges, he suggested that players in the industry should crank up regulatory monitoring, streamline their supply chains, adopt more strategic pricing strategies, and explore technology partnerships to stay competitive.
On the home front, Brandon Cohen, who’s the National Chairperson of the National Automobile Dealers’ Association (NADA), shared some encouraging news about recent changes in South Africa’s automotive aftermarket policies. These new guidelines have effectively opened up the warranty service market for independent service providers, letting them compete with franchise dealerships without voiding warranties. That’s actually a pretty big breakthrough. Not only does it give consumers more choices, but it’s also had the unexpected benefit of boosting parts sales for the dealers themselves. It’s a rare example of government intervention that actually balances opening up the market with keeping industry stability intact.
Looking at the bigger picture economy-wise, Nicky Weimar, the Group Chief Economist at Nedbank, offered a somewhat cautious but optimistic outlook. South Africa’s economy is on a slow recovery track, with GDP growth sitting near 1% — and the domestic vehicle sales for the year up by about 13.8%. Inflation has eased to 3.5%, and interest rate cuts of around 125 basis points are making it easier for folks to buy cars. Household debt levels, which used to be a concern, are now lower — below 9%, which helps. Still, Weimar pointed out some persistent problems, like struggling municipalities, high electricity costs, and logistics inefficiencies — all made worse by external pressures from US tariffs. Despite these hurdles, she remains optimistic about continued growth in domestic vehicle demand, driven by higher household incomes and better financing options.
Finally, Michael Dehn, the Managing Director of Messe Frankfurt South Africa, wrapped things up by talking about the demographics of the industry and how they’re changing. The audience at the Festival of Motoring is getting noticeably younger — mostly under 40 now — and the gender balance is shifting too, moving toward parity from a previously mostly male dominance of about 70-30. Dehn said these shifts reflect the broader, more collaborative spirit of South Africa’s automotive industry, highlighting how it’s adaptable and ready to meet new challenges together.
Beyond just looking inward, industry leaders are also thinking regionally and globally. There’s a strong focus on using the African Continental Free Trade Area (AfCFTA) as a strategic tool—to try and offset some of the negative impacts of US tariffs, and to expand market access across the region. This trade zone offers a potential market worth around $3.4 trillion, with lots of growth prospects, aligning with broader efforts to deepen regional integration. Alongside AfCFTA, agreements like the African Growth and Opportunity Act (AGOA) and trade relationships within BRICS are also on the radar as ways to open up new markets and form partnerships.
Another key theme is compliance and technology. Presentations from the National Regulator for Compulsory Specifications (NRCS) underscored just how important it is for the industry to meet international safety and environmental standards—especially with the rapid pace of technological change, like electric vehicles and autonomous driving systems on the rise. Adhering to these regulations isn’t just about safety; it’s essential for maintaining access to markets and staying competitive.
Looking ahead, the Automechanika Johannesburg CEO Breakfast — and the bigger trade fair it’s part of, sponsored by major players like Nedbank, the Automotive Industry Development Centre (AIDC), and SKF — continue to serve as valuable platforms for industry learning, strategy sharing, and growth. These gatherings aren’t just about tackling today’s challenges; they’re about paving the way for innovation, collaboration, and sustainable development in South Africa’s automotive aftermarket and manufacturing sectors.
Source: Noah Wire Services
