The South African Motor Trade is amongst the most vibrant in the world and internationally the motor
trade is amongst the most highly industrialized industries. This is good news for members of the motor
trade.
In South Africa, the motor trade contributes at least 4% of our GDP making it one of the most important
industries for our government to care for.
With many of the world’s major vehicle manufacturers setting up manufacturing facilities in South
Africa, we have become a net exporter of motor vehicles. We export more vehicles than we import, and
this helps reduce our import/export deficits.
South Africa boasts one of the world’s most sophisticated and vibrant banking systems. Members of the
South African public have very easy access to car loans assisting the motor buying public with easy
access to cars.
In prosperous economic times, used cars outsell new cars at a ratio of 2:1. In tough economic times the
ratio is 1:4.
In 2018, 6.5 million people between the ages of 18 and 25 yrs old were unemployed. A small bump in
the economy will result in many of these people buying cars.
South Africa has a terrible public transport infrastructure. This forces a large portion of the middle class
to buy cars to get to work and back. The government has plans to improve and sometimes force the
public to use public transport but until the rail and bus systems begin to reflect those of Europe and
other mega cities, there will be a need to own a car in South Africa as is evident by the traffic jams
experienced every day on our roads and highways.
As much as 95% of the cars in traffic jams will be recycled through the used car industry at some point
and they ALL need to be maintained by workshops.
In 2019, the right to repair act was implemented in South Africa. In a nutshell, this will mean that
any workshop in SA with the right equipment and qualified staff will be able to cater for OEM service
plans and warranties. The impact of this legislation is a boon for the independent workshop market in
SA.