KwaZulu-Natal’s gross domestic product grew by 1,4% in 2025, with the automotive industry playing a central role in that performance. The figure was revealed at the recent Automechanika Johannesburg Q2 CEO Breakfast at the Durban Chamber of Commerce and Industry.
Messe Frankfurt South Africa organised the gathering, with Nedbank as sponsor. The event drew senior executives, policymakers, and industry specialists ahead of Automechanika Johannesburg 2026, a key trade fair for the automotive aftermarket.
Real Movement
Meschack Zwane, company economist at Trade and Investment KwaZulu-Natal, told attendees that the GDP growth was supported by a 21% recovery in agriculture and a year-on-year surge of more than 50% in vehicle and parts exports. Business confidence in the province hit 60 points in the fourth quarter of 2025 – the highest ever recorded.
“KwaZulu-Natal is open for business, and the numbers back that up,” Zwane said. “Belgium has overtaken the United States as our largest export partner, and the UAE recorded export growth of nearly 180%. These are not small gains. They point to a real shift in how global markets see KZN as an automotive hub. The conditions are right. The question is whether we are bold enough to seize them.”
National Context
Tshetlhe Litheko, chief policy officer at naamsa, added South Africa produced 618 077 vehicles in 2025, with domestic sales rising 15,7%. While vehicle exports dropped by 22,8%, he described that decline as a reason to reposition rather than retreat.
“South Africa has the industrial base, the policy framework, and the skills to be a serious player in the global move towards new energy vehicles,” Litheko said. “The 150% investment allowance for electric vehicle production sends a clear signal from government that this sector is a priority. Disruption creates space for those who are prepared, and South Africa has every reason to be prepared.”
Money and Manufacturing
Takatso Sello, senior manager for manufacturing at Nedbank, acknowledged cost pressures on local manufacturers but argued that sustainable operations offer a real edge.
“The manufacturers who will thrive are those who treat sustainability not as a compliance exercise but as a competitive edge,” Sello said. “Nedbank is committed to being a financing partner for that transition. The business case is clear, and the window of opportunity is now.”
Workshops and Technical Skills
Anton Fiets, executive manager for industry development at the AIDC, pointed to the aftermarket as a serious growth area. He highlighted the AIDC’s Township Automotive Hubs initiative, which provides workshop bays, diagnostic tools, and technical training to township-based businesses. The organisation’s Manufacturing Centre of Excellence also builds skills in mechatronics, electric vehicle systems, and Industry 4.0 technologies.
“The aftermarket is not a footnote in South Africa’s automotive story – it is a chapter of its own,” Fiets said. “When we invest in township workshops and advanced technical training, we are building an economy that works for everyone.”
Michael Dehn, managing director of Messe Frankfurt South Africa, said the event showed a clear sense of where opportunities lie and a willingness to act.
“KwaZulu-Natal has the exports, the confidence, and the infrastructure to lead,” Dehn said. “Automechanika Johannesburg exists to give industry leaders the platform, the data, and the connections to turn that potential into results.”
Automechanika Johannesburg 2026 runs from 27 to 29 October 27 to 29 at the Gallagher Convention Centre in Midrand.
