Tau said Indian and Chinese investors are exploring opportunities to collaborate with existing automakers in South Africa.India’s automobile industry is deepening its footprint in South Africa, with several companies planning to upgrade their existing assembly lines into full-fledged manufacturing facilities and set up new plants, as part of a broader effort to strengthen local production and exports.
According to News South Africa, the move aligns with South Africa’s renewed push to attract global automakers and revitalise its automobile sector. South Africa’s Minister of Trade, Industry and Competition, Parks Tau, confirmed that Indian and Chinese automakers have expressed strong interest in expanding their investments in the country.
Tau has been engaging with multiple automakers under the government’s strategy to revive the local auto industry, which has been struggling due to declining export demand, stiff competition from cheaper imports, and persistent infrastructure challenges.
Govt’s focus on sustainable mobility
The pressure has intensified following the United States’ decision to impose tariffs and the European Union’s proposed ban on internal combustion engine (ICE) vehicles, both of which have dampened South Africa’s export prospects. To counter this, the government is now prioritising investments in new energy vehicles (NEVs) and electric mobility.
Tau said Indian and Chinese investors are exploring opportunities to collaborate with existing automakers in South Africa — both by utilising surplus production capacity and setting up new factories. Companies currently operating under the semi-knocked-down (SKD) model are expected to transition to complete-knocked-down (CKD) manufacturing, which involves full-scale local production.
A strong push to exports
Indian automaker Mahindra & Mahindra has confirmed plans to upgrade from SKD to CKD production, aiming to enhance local manufacturing capabilities and develop South Africa as a regional export hub. The company is also evaluating opportunities to establish electric vehicle (EV) assembly operations in Durban, backed by South Africa’s policy support for clean mobility.
Meanwhile, Tata Motors, which had halted exports to Africa in 2017, is re-entering the market through a strategic partnership with Motus Holdings Limited, South Africa’s largest passenger vehicle retailer. The collaboration will help Tata Motors distribute its vehicles more effectively across the region.
The South African government is also in talks with global players such as Toyota and Ford to sustain automotive production and address key issues including tariff risks, rising Chinese competition, and the costly transition to EVs.
- Published On Oct 27, 2025 at 08:29 AM IST
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