Leaders in the automotive sector came together for the media launch of the 2025 Naacam Show and Conference, taking place in Gqeberha this week. From left, AIDC-EC CEO Thabo Shenxane, Naacam CEO Renai Moothilal, and AITF CEO Jabulani Selumane. (Picture: Deon Ferreira) 
With US tariffs adding fresh pressure, manufacturers of vehicles and automotive components in Nelson Mandela Bay face an uphill battle to stay competitive in an increasingly shrinking market.
However, over the next two days, automotive roleplayers will have the opportunity to connect and network on ways to improve their businesses at the 2025 edition of the National Association of Automotive Component and Allied Manufacturers (Naacam) Show and Conference, which takes place at the Boardwalk Hotel International Convention Centre in Gqeberha.
About 150 exhibitors will showcase their products and services, while a host of speakers will lead discussions related to the South African automotive industry on a local and global scale.
Speaking at the media launch of the event on Tuesday, Naacam CEO Renai Moothilal said South Africa’s automotive component manufacturers provided 80,000 direct jobs and about twice as many indirect jobs through suppliers and other auxiliary businesses.
He said there was growing concern over the “fluid global trade environment”, referring to the 30% US tariffs and their impact on this sector.
In 2024, the export value of South Africa’s automotive industry, including vehicles and components, totalled R270-billion, of which just over 10% — R28.7-billion — went to the US.
Breaking that figure down further, Moothilal said R4.4-billion worth of components were exported to the US.
“We live in interesting times, and this sector has faced distinct challenges in the recent past. We have observed a decline in the domestic market for vehicles assembled in South Africa, as well as increased import penetration in both vehicles and components. This led to reduced production from original equipment manufacturers (OEMs).”
The panel pointed to two stark examples of mounting pressure on the sector — the withdrawal of Goodyear South Africa and the pending closure of its Kariega plant, and the announcement by Jendamark Automation that US tariffs could cost it R750-million in contracts.
Read more: Goodyear to shut down Nelson Mandela Bay manufacturing plant — 900 jobs at risk
In addition to the blow delivered to Nelson Mandela Bay in June when the Goodyear announcement was made, a week ago, ROVD Engineering, also based in the metro, said it had lost hundreds of millions of rands in contracts because of the US tariffs.
The company, which has operated in Gqeberha for 61 years, designing, manufacturing and exporting turnkey industrial automation systems to US customers, said it was looking at moving offshore to continue manufacturing.
Read more: Trump tariffs jeopardise future of decades-old Nelson Mandela Bay engineering firm
Political instability
But global pressures aren’t the only threat. Locally, Nelson Mandela Bay’s political instability and crumbling infrastructure are disrupting the supply chains that manufacturers depend on.
Pointing this out, the CEO of the Automotive Industry Development Centre in the Eastern Cape, Thabo Shenxane, said the political climate and service delivery in Nelson Mandela Bay were ongoing challenges.
He said crumbling infrastructure had caused countless disruptions throughout the value chain as it led to unreliable energy, water outages and logistical issues as a result of poor roads and inoperable railway lines. He also referred to the well-documented political instability that has long plagued the metro.
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“It’s not just a Naacam member problem or a government problem. It is a societal problem, and we must look for opportunities to improve our business,” said Shenxane.
He believes the Naacam show provides a unique opportunity for stakeholders in the automotive industry to engage constructively and develop solutions that will assist each other and add to the growth of the entire sector.
Automotive Industry Transformation Fund (AITF) CEO Jabulani Selumane agreed with Shenxane, saying the show could prove to be a “catalyst” for SME growth within the automotive sector.
He said that since the AITF was founded in 2021, it had contributed to the establishment of 70 small businesses within the sector, creating 2,700 jobs in the process.
“SMEs are not just junior partners. They are the growth engine, and they bring agility, innovation and the capacity to localise component manufacturing to build resilience in our supply chain.”
He said SMEs could not operate in isolation but required support, resources, skills and market access that larger corporations provided, which made the Nacaam Show a valuable platform for growth and development. DM