SA’s automotive aftermarket faces a critical test of resilience and readiness
SA’s automotive aftermarket faces a critical test of resilience and readiness
Domestic and global structural pressures, including rising costs, skills shortages and the influx of Chinese vehicle brands, are forcing South Africa’s automotive aftermarket to strengthen resilience, improve productivity and invest in future-ready capabilities.
Siyabonga Mthembu, Partner, Automotive sub sector lead at BDO South Africa, says the sector’s next wave of growth will depend on its ability to localise supply, close skills gaps, formalise smaller operators, and leverage data and new technologies to capture emerging demand. Stronger policy support and industry collaboration will be critical to translating these opportunities into sustainable growth while meeting customer needs and maintaining industry standards.
In 2025, South Africa’s automotive aftermarket was valued at approximately R197 billion and directly employed 317 000 people. It comprises a nationwide network of workshops, tyre specialists, testing centres, body repairers and parts suppliers that supports economic activity, productivity, mobility and access to essential services.
Mthembu says shifts in the global automotive market are creating a more complex operating environment for the local aftermarket, with four key challenges:
- Increasing brand and model diversity: Expands parts and technical support requirements while intensifying competition across aftermarket channels.
- Growing EV, hybrid and ADAS adoption: Increases repair complexity and demand for specialised skills in calibration, diagnostics and software.
- Reliance on imported parts: Heightens exposure to supply disruptions, longer lead times, inventory costs and the need to diversify sourcing.
- Price-sensitive demand: Drives demand for affordable parts and services, intensifying competition and squeezing supplier and workshop margins.
Domestic structural challenges add to these pressures. Major market players cite rising operating costs, while skills shortages and slower development of New Energy Vehicle (NEV) policy and infrastructure further complicate operations.
“Together, these factors are putting pressure on margins and requiring aftermarket players to strengthen resilience, improve productivity and invest selectively in future-ready capabilities,” Mthembu says.
He adds that the proliferation of Chinese vehicle brands, mounting pressure on established Original Equipment Manufacturers (OEMs), and the shift towards SUVs are reshaping the sector. A more fragmented brand mix increases complexity for parts suppliers and repairers, while some newer entrants lack adequate spare-parts availability and technical support.
“Chinese manufacturers are accelerating market fragmentation in South Africa, with the number of represented brands nearly doubling from eight in 2024 to 15 in 2025, an 87.5% year-on-year increase. This broadens the range of vehicles, models and parts the industry must support, while increasing the need for technical expertise.”
Meanwhile, some OEMs are scaling back their local presence, creating a more challenging operating environment. Aftermarket businesses need to account for these shifts in their long-term planning and adapt to a structurally changing market.
To capture emerging opportunities, Mthembu says businesses must address operational gaps before scaling investment. Priorities include analysing vehicle parc trends, repair demand and customer affordability; pursuing dual sourcing, strategic safety stocks, value-oriented parts ranges, local procurement, affordable service packages and workshop automation; and strengthening collaboration among suppliers, workshops, fleet operators and training institutions to improve access to parts, technical knowledge and practical training.
Targeted technical upskilling, combined with long-term artisan development, will also be essential to building the capabilities needed for sustainable growth.