Midrand:Trade, Industry and Competition Deputy Minister, John Steenhuisen, has emphasized the need for increased localisation, investment, and job creation within South Africa’s automotive aftermarket sector. Speaking at the Automechanika Johannesburg 2026 CEO Breakfast at the Gallagher Convention Centre in Midrand, Steenhuisen underscored the economic significance of an industry that traded approximately R933 billion in 2025, contributing R202.6 billion to the nation's GDP.
According to South African Government News Agency, Steenhuisen called for enhanced investment, localisation, skills development, and export expansion in the automotive aftermarket industry. He described the sector as a key driver of economic growth, industrial development, and employment, supporting over 310,000 jobs across more than 23,000 businesses, predominantly small and medium-sized enterprises.
Steenhuisen highlighted the potential to expand domestic manufacturing of replacement parts, given that South Africa imported approximately R107.5 billion in parts in 2025. He noted that increased localisation could result in job creation, strengthened industrial capabilities, and retained economic value within the country.
He also addressed the ongoing review of the Automotive Production and Development Programme (APDP2), suggesting it should encompass the broader automotive value chain. Furthermore, he identified the African Continental Free Trade Area (AfCFTA) as a promising avenue for expanding exports of replacement parts and specialised services.
Steenhuisen expressed concern over the 31% decline in qualified automotive artisans since 2009, despite a rise in apprenticeships, and called for collaboration between government, industry, and educational institutions to prepare for emerging technologies. He also noted the economic toll of road crashes, which cost South Africa nearly R200 billion in 2025, and emphasized the importance of vehicle maintenance for road safety and economic benefits.
In his concluding remarks, Steenhuisen stressed the necessity of transforming investment announcements into tangible outcomes, reaffirming his commitment to collaborating with industry to remove growth barriers, enhance competitiveness, and unlock employment opportunities.
