Sub-Saharan Africa represents a rapidly growing market for the automotive industry; one which is likely to stimulate demand for some 10 million vehicles by 2030. This expanding market is dependent on the importation of vehicles and parts. Whilst current trends are likely to result in the industry placing an ever-growing burden on the trade balance of the region, it also represents a market opportunity, which could play a major role in the further industrialization of the continent. In addition, efforts are underway, driven by automotive industry federations, to improve regional integration arrangements, whilst the African Continental Free Trade Area Agreement will most certainly lead to the establishment of an ever-larger market for players in the automotive sector. The automotive industry already makes a considerable contribution to South Africa's Gross Domestic Product and the Government is continuing efforts towards both sustaining and growing the industry.

In line with this, the National Association of Automobile Manufacturers of South Africa (NAAMSA) has in place an automotive master plan, whose aims are to increase annual production to 1.4 million vehicles by 2035, whilst simultaneously increasing the volume of auto components made locally to 60% from 39%. Given that in South Africa only some 33% of households reportedly own a car currently, there exists massive potential for automotive industry growth here.

Toyota South Africa:

Having pledged to invest more than R2.5 billion in the production of a new passenger car at the Presidential Investment Summit in November 2019, Toyota South Africa has since announced its intention to invest R3 billion in South Africa for the manufacturer of the new Corolla Cross Sport utility vehicle (SUV) at enormous engineering plant in Prospecton, south of Durban. Local production of the compact SUV, based on the new-generation Corolla sedan and hatchback, commences in October 2021, with the company's investment generating some R2.85 billion in additional component purchases within the South African economy and creating 1 500 new employment opportunities. The manufacturer is also set to start production on a locally produced new energy vehicle, which will future proof the destination for automotive production.