South Africa’s local vehicle manufacturing operations are increasingly coming under pressure from foreign car companies.<\/p>\n\n\n\n
International brands like Chery and Haval have recently entered the South African market, offering cheap alternatives to established vehicle manufacturers.<\/p>\n\n\n\n
These companies have exploded in popularity across the country, with Chery selling over 6,000 new vehicles in the first four months of 2026.<\/p>\n\n\n\n
South Africa’s automotive industry is one of the largest employers in the country, employing more than 115,000 people directly, and is critical to the economy.<\/p>\n\n\n\n
In a recent trading statement, Metair said that South Africa’s vehicle manufacturing market was seeing pressure from these international companies.<\/p>\n\n\n\n
Metair, a vehicle parts manufacturer, noted that South Africa’s new-vehicle market had grown in the first half of the year.<\/p>\n\n\n\n
Between January and June 2026, over 315,000 new vehicles were bought in South Africa, a 12.9% year-on-year increase.<\/p>\n\n\n\n
Metair also noted that sales in June 2026 were the highest for that month in 19 years, boosting performance in the new vehicle market.<\/p>\n\n\n\n
The company said that most of these new vehicle sales were attributable to international imports, particularly from Asian countries.<\/p>\n\n\n\n
“Most of the increase in vehicle sales was attributable to imports from Chinese and Indian
automotive brands, which continue to put pressure on the locally manufactured vehicle market,” it said.<\/p>\n\n\n\n
South African vehicle manufacturing is a major industry, with plants such as Volkswagen’s Kariega factory acting as drivers for local economies.<\/p>\n\n\n\n
The Kariega manufacturing plant alone employs over 3,900 people, and is one of the only places in the world which manufactures Volkswagen Polos.<\/p>\n\n\n\n
Metair also said South Africa’s automotive industry struggled with reduced export numbers for the start of the year, down by 7.8% year-on-year.<\/p>\n\n\n\n
This represents approximately 181,000 vehicles being exported by South African manufacturers, which often rely on exports as a key revenue source.<\/p>\n\n\n\n
Metair noted that the country’s overall vehicle production had remained fairly flat, and despite challenging aftermarket conditions, this area had shown recent signs of improvement.<\/p>\n\n\n\n
The company said that despite Original Equipment Manufacturer (OEM) production not seeing much growth, it still expects to see slightly increasing revenue.<\/p>\n\n\n\n
It also expects its EBIT to rise slightly due to cost-saving measures, improved operational efficiency and the inclusion of Harnesses Proprietary Limited in its next interim results.<\/p>\n\n\n\n
The company said that it is happy with its performance during the interim period, despite the challenging market conditions it had faced.<\/p>\n\n\n\n
“Metair is pleased with its operational and financial performance and resilience during the Interim Period particularly given the net decrease in local OEM volumes for the two major customers served by Metair,” it said.<\/p>\n","protected":false},"excerpt":{"rendered":"
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