The sector, which supports tens of thousands of direct and indirect jobs, has lost close to 5,000 positions over the past two years, according to labour estimates.
Unions say the job losses reflect a surge in imported vehicles that is displacing locally assembled cars, while manufacturers remain split over how the industry should respond.
Chinese brands gain ground in a price-sensitive market
Brands such as BYD, Jaecoo and Omoda have gained visibility rapidly, with searches for their models on AutoTrader more than doubling year on year in 2025.
AutoTrader’s Mid-Year Report showed sales of Chinese brands jumping 89% in the first half of 2025, albeit from a low base.
Analysts say the growth reflects South Africa’s highly price-sensitive consumer base, where lower-cost imports are undercutting domestic producers.
Job losses spread beyond factory floors
The impact of rising imports is increasingly visible across the broader automotive ecosystem.
Motus, one of South Africa’s largest automotive retail groups, laid off 86 employees, and 579 more were impacted by changes to pay and benefits as part of a restructuring process implemented from January 1, 2026.
The Motor Industry Staff Association (MISA) noted this was among the biggest retrenchments it had seen in 2025 and linked the moves to competitive pressure from an influx of Chinese brand vehicles in the South African market.
Union backlash exposes industry rift
Tensions escalated after comments by National Association of Automobile Manufacturers of South Africa (Naamsa) chief executive Mikel Mabasa, who described the rise of Chinese vehicle imports as “fantastic”.
The National Union of Metalworkers of South Africa (Numsa) condemned the remarks, accusing industry leadership of trivialising the crisis facing workers and suppliers.
Numsa general secretary Irvin Jim said Mabasa’s comments were “nothing less than a sabotage” of an already distressed industry.
“We cannot immediately say what drives this dangerous narrative, but it is our view that the real reason and interest behind such a statement won’t be confidential forever,” Jim said.
“To present the growing flood of imported vehicles – particularly from China – as fantastic and a needed wake-up call South Africa, and its vehicle assemblers, should simply accept.
“The cost of competition is a huge problem and Numsa rejects this ill-informed view with the contempt it deserves.”
Plant closures mount as pressure intensifies
Over the past 24 months, Numsa estimates that 13 automotive component plants have closed, eliminating about 4,500 skilled jobs.
Goodyear’s tyre plant in the Eastern Cape shut down late last year, costing 900 jobs, while supplier ZF Lifetec is also at risk of closure.
As unions call for more local manufacturing and industry leaders debate competitiveness, the situation shows a key challenge for South Africa’s automotive industry: how to keep cars affordable while protecting jobs and supporting local industry in a global market.”
