The automotive sector is a crucial pillar of the South African economy. The National Association of Automobile Manufacturers of South Africa (NAMES) says Original Equipment Manufacturers (OEMs) that build cars and bakkies (pickups) employ more than 112,500 people in South Africa. These tasks are spread across the different parts of the ecosystem, from component manufacturing to vehicle assembly, and also include the OEM’s supplier partners and dealers.
According to the NAAMSA website, the industry’s strong multiplier effect results in more than half a million jobs in the formal sector of the South African economy when the entire value chain is taken into account. In general, the automotive industry contributes 4.3% of South Africa’s GDP and makes up nearly 20% of South Africa’s manufacturing output.
Car sales in South Africa in the last 6 years:
South African market by fuel type, 2016 to 2021 Source: NAAMSA/Lightstone Auto
The table above shows that 99% of vehicles sold in South Africa are still combustion engine vehicles. In addition to local sales, a large proportion of vehicles assembled in South Africa are exported to Europe and other places. One of the popular export models is the Ford Ranger Pickup. By September last year, Ford South Africa had exported more than 500,000 locally assembled Ranger pickups, most of which were from the previous model assembled in Pretoria from 2011 to early this year. A new-generation combustion-engined Ford Ranger will replace that highly successful outgoing model in the fourth quarter of this year.
The problem now is that many countries that are currently the main destinations for South African assembled vehicles are gradually planning or enacting outright bans on the sale of new combustion vehicles, with some bans taking effect as early as 2025. This means that the South African auto sector will have to act fairly quickly to introduce some locally assembled electric vehicles in order to increase its export market share, or at least maintain its current market share in some of these markets.
South Africa is home to several factories for the assembly of vehicles and parts. These include assembly plants for BMW, Mercedes, Toyota and Ford. Given the prominent role of the Ford Ranger in South Africa’s exports, we hope that the upcoming electric Ford Ranger Lightning & Thunder models will be added to the Pretoria plant’s lineup for both the local and export markets. If this happened, it would really give the South African car industry a big boost by bringing a model that could future-proof the industry.
One of the key factors for South Africa to really grow, or at least maintain its market share in car exports to the UK and the European Union, is building a critical mass of skilled labor for electric vehicle manufacturing. vehicles. To help this talent pool grow, the UK announced R3.7 million (£190,000) in funding for the development of new skills across South Africa for jobs in the fast-growing electric vehicle sector. The new aid will fund research to ensure South African students develop the most sought-after skills in the electric vehicle sector, as well as new online training content and teacher support.
If the electric Ford Ranger Lightning & Thunder were indeed assembled in South Africa, the assembly lines would be powered by some of the clean electricity from the newly commissioned 13.5 MW solar carport system. Ford South Africa’s assembly plant generates 35% of its electricity needs on site with this massive carport system. The plant will offset a significant amount of CO2 from the electricity it consumes from South Africa’s predominantly coal-fired grid through a long-term electricity purchase agreement with SolarAfrica. The solar PV array will eliminate the equivalent of 20,072 tons of CO2 per year, which is an important step towards meeting Ford’s zero-carbon emissions targets by 2035.
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