South Africa auto sector: India has become the South African automotive industry's top country of origin for vehicle imports since 2013, the Automotive Business Council says in its BRICS+ Research Report 2024.

This was because India has been established by various brands as the global hub for small and entry-level vehicles which comprise the bulk of sales in the domestic market, the report said.

Tata and Mahindra have firmly established their automotive products in South Africa. Mahindra executives have even repeatedly reaffirmed that South Africa is their second home outside India because of major investments, including a production line in Durban.

China and India have consistently featured as two of the South African automotive industry's top 10 trading partners since 2010, mainly due to the increasing level of automotive imports.

More recent entrant China has consolidated its position as the second largest country of origin for vehicle imports since 2022 as financially strapped consumers gravitated towards the more affordable model options in the domestic market, while the country has also become the top country of origin for aftermarket parts imports since 2018, the report said.

In 2023, the automotive trade balance remained heavily skewed in favour of India with an import-to-export value ratio of 97,7 to 1, with China 56,8 to 1 and with Brazil 2,6 to 1, the report said as it identified the need for BRICS nations to explore complementarities, share experiences and promote capacity-building in the automotive trade and investment-related issues.

The report said that South Africa's admission into BRICS (Brazil, Russia, India, China, and South Africa) had enhanced the country's international stature, and trade and economic relations with these major economic forces.