The automotive manufacturing industry has become an important contributor to the South African economy over the last 25 years.

In fact, research conducted by Econometrix showed that the automotive industry had contributed 7.2% (or R256.7-billion) to the South African gross domestic product in 2015. The sector has shown continual progress, even in times of low economic growth and frequent change, and it is now the main producer of vehicles in Africa.

According to the South African Automotive Masterplan 2035, government hopes to achieve 1% of global vehicle production by 2035 – increasing manufactured output from 600 000 to approximately 1.4-million units a year.

In the 2019 State of the Nation address, President Cyril Ramaphosa singled out the manufacturing industry as one he expects to substantially expand investment over the next five years and create a vast number of new jobs.

Nissan, one of the many carmakers in the country, stands by this statement and plans to continue adding to its production output, which is currently at 40 000 units per annum.

The next 25 years of democracy coincides with the Fourth Industrial Revolution and will require the sector and government to work together to overcome challenges they have never faced before, such as a move towards electric vehicles and the sharing economy.

The automotive industry in SA needs to start preparing for this shift by increasing its technology capabilities in-house so that it will continue to hold its place and grow on the continent and around the world.