South Africa and Morocco continue to dominate Africa’s automotive industry, according to the latest figures from the International Organisation of Motor Vehicle Manufacturers.
South Africa produced 599,755 vehicles in 2024, a 5% decline compared with the previous year, placing the country 20th globally.
The total fell short of the 784,509-unit target set under the South African Automotive Masterplan 2035, according to Business Insider.
Morocco, meanwhile, manufactured 559,645 vehicles, marking a 5% increase that lifted its global ranking to 23rd.
Analysts say emerging markets are cementing their role as key automotive hubs, supported by growing incomes, regional trade agreements, and supply chain adjustments away from higher-cost nations.
In South Africa, seven major global automakers, including Volkswagen, Toyota, and Mercedes-Benz, operate local assembly plants.
The sector, however, faces difficulties from rising vehicle imports, especially from China, coupled with sluggish domestic demand.
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Trade Minister Parks Tau said weak demand for locally assembled cars and low levels of local content had forced 12 plant closures and resulted in more than 4,000 job losses over the past two years.
He added that exports are also under pressure, with shipments to the United States falling sharply in April and May 2025 after President Donald Trump imposed steep tariffs that removed much of the duty-free access South Africa had previously enjoyed under the African Growth and Opportunity Act (AGOA).
The United States has long been South Africa’s second-largest trading partner and an important destination for its vehicle exports.
Globally, total vehicle production reached 92 million units in 2024, led by China, the United States, and Japan.
China alone built more than 31 million vehicles, more than the combined total of the U.S. and Japan, supported by strong domestic demand, rapid electric vehicle growth, and rising exports.
Passenger cars accounted for 27.5 million units of China’s output. In the United States, production leaned heavily toward commercial vehicles, with 9.1 million units compared with just 1.4 million passenger cars.
Other emerging markets, including India, Mexico, and Brazil, also moved up in the global rankings.
Together, China, the U.S., and Japan accounted for 54% of all vehicles produced worldwide in 2024.
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Image Credit: Auto World Journal
