Separate pay talks with automakers including BMW South Africa and the local units of Toyota and Ford haven\u2019t begun yet and the union has yet to table its demands.<\/p>\n\n\n\n
South Africa is the world\u2019s most unequal country<\/a> and its economy has barely grown over the past decade. <\/p>\n\n\n\n Still, the automotive sector remains a key driver of output, accounting for about 5% of gross domestic production. <\/p>\n\n\n\n Averting a fourth-consecutive deadlock in pay talks and a potential strike by more than 100,000 workers is seen as key for the survival of an industry that has long been hobbled by electricity-supply constraints and logistics challenges. <\/p>\n\n\n\n \u201cThe economy isn\u2019t performing well and a flat 10% increase along with some of the other challenges will negatively impact the performance of businesses,\u201d said Siyabonga Mthembu, a partner at BDO South Africa. <\/p>\n\n\n\n \u201cInternational companies operating in South Africa\u2019s automotive sector are particularly at risk and will have to consider survival strategies such as market diversification.”<\/p>\n\n\n\n “Sometimes, looking at pay in isolation of other factors at play can be very dangerous and I think all the parties need to sit around a table and understand the entire ecosystem.\u201d<\/p>\n\n\n\n Phakamile Hlubi-Majola, Numsa\u2019s spokesperson, has said that asking for an inflation-linked increase in the motor industry is \u201cunrealistic\u201d because its members are struggling to survive.<\/p>\n\n\n\n Representatives for employers associations declined to comment as formal wage negotiations have yet to begin. <\/p>\n\n\n\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/06\/South-Africa-auto-industry.jpg\")
<\/a><\/figure>\n\n\n\nPrice-Sensitive Buyers<\/h2>\n\n\n\n
![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/06\/South-Africa-car-imports.jpg\")
<\/a><\/figure>\n","protected":false},"excerpt":{"rendered":"