Automobile manufacturing

Automobile manufacturing is an important pillar industry in South Africa, accounting for about 10% of South Africa’s manufacturing exports. World-famous automobile brands, such as BMW, Ford, Volkswagen, DaimlerChrysler, and Toyota, have set up production lines in the country to develop a complete industrial chain.

In 2015, the export of vehicles in South Africa increased by 21%. At present, 60% of the companies in the industrial area are automakers and in the nearby areas are also some spare parts manufacturers. The industry has effectively stimulated the local economic development. The great momentum of auto exports in South African is due to the African Growth and Opportunity Act (AGOA), a unilateral gesture of the United States to African countries. According to the act, automobiles produced in South Africa have duty-free quota-free (DFQF) market access for the US market.