In a collaboration that is hot off the press, Ghost Mail readers can access Who Owns Whom research reports, industry overviews and organograms at a significantly discounted rate. These reports provide invaluable deep dives into the local and African markets and are used by many local institutions.
The motor vehicle industry in South Africa is a chunky part of the economy. Among higher income groups, we are a nation of drivers rather than public transport users. Cars are part of South African culture, making us an important market for many global manufacturers.
Unsurprisingly, South Africa has the largest vehicle market (measured by sales and exports) in Africa. Sales did well over the pandemic, though workshop revenue has struggled to return to pre-pandemic levels. This makes sense, as maintenance costs are driven by mileage and most of us have been driving far less in a hybrid working environment.
With global semiconductor shortages, the vehicle market experienced a jump in used car prices based on supply-demand dynamics. In many cases, people were selling cars for more than they paid for them!
The local manufacturing industry has faced more than just semiconductor challenges. Issues like social unrest and the electricity crisis have impacted production. Although we have a vibrant local manufacturing base, there are also question marks over the ability to shift that production to electric vehicles in response to global demand.
We also shouldn’t forget that South Africa is a strategic supplier of catalytic converters to the world, as we are the most important Platinum Group Metals (PGM) producer in the world.
Overall, the researchers at Who Owns Whom believe that the long-term outlook for the vehicle manufacturing sector is positive and that the short-term outlook is uncertain. The potential loss of export share based on a material global shift to electric vehicles is a concern.
