The final Automechanika Johannesburg CEO Breakfast of 2025 was held at the Kyalami Grand Prix Circuit, gathering senior industry figures for strategic talks alongside the co-located Festival of Motoring. The event featured keynote presentations from four experts who addressed pressing issues within the national automotive sector.
Victor Radebe, Chief Director of the Programme Management Office of the Premier for Gauteng Provincial Government, opened the proceedings, framing the dialogue on industry transformation. Sandile Ntseoane, General Manager of the Southern African Vehicle Rental and Leasing Association, positioned his sector as a central component of national mobility. He noted its post-pandemic stabilisation, recovering fleet sizes, and a rise in rental demand linked to tourism. Key transformations he highlighted included a careful move towards electric vehicles, evolving customer needs leading to shorter lease terms and the adoption of telematics and AI in fleet management.
Duane Newman, a Partner at EY South Africa, provided a detailed analysis of challenging US trade policies. He outlined how tariffs of 25% on automotive products and 50% on certain metals could lead to potential export revenue losses of between R 25-billion and R 29-billion annually for South Africa. This, he warned, could result in economy-wide job losses estimated between 50 000 and 100 000. Newman advised local companies to focus on regulatory monitoring and supply chain optimisation to navigate this environment.
On a more positive domestic note, Brandon Cohen, National Chairperson of the National Automobile Dealers’ Association, discussed the implementation of aftermarket service guidelines. He reported that the newly opened warranty service market is fostering healthy competition between independents and franchise dealers, a move that benefits consumer choice and has, unexpectedly, increased parts sales for dealers.
Nedbank’s Group Chief Economist, Nicky Weimar, provided the economic context, describing a modest recovery with GDP growth approaching 1% and a 13,8% year-to-date increase in domestic vehicle sales. She cited declining inflation of 3,5% and interest rate cuts totalling 125 basis points as factors improving consumer affordability. However, Weimar also warned that US tariffs, combined with local structural challenges like failing municipalities and inefficient logistics, present significant headwinds for exporters. She projected that rising household incomes and improved financing would continue to support domestic vehicle demand for the next two years.
In closing, Michael Dehn, Managing Director of Messe Frankfurt South Africa, highlighted evolving market demographics, noting the Festival of Motoring audience is now predominantly under 40 years old and has reached a near equal gender split, a significant shift from a 70-30 male-female ratio in 2019. The breakfast, sponsored by Nedbank, the Automotive Industry Development Centre and SKF, served as a precursor to the main Automechanika Johannesburg trade fair, which runs from 28 to 30 October at the Gallagher Convention Centre in Midrand.
Colin Windell for Colin-on-Cars in association with
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