The CEO of Volkswagen Group Africa, Martina Biene, has described 2026 as a “make-or-break year” for the automotive industry, warning that prolonged policy uncertainty could derail future investment.
“The manufacturing automotive industry is at a crossroads,” said Biene, who also serves as president of the African Association of Automotive Manufacturers.
Speaking in Gqeberha on Wednesday, she argued that South Africa’s current automotive policy framework no longer reflects market realities.
Declining domestic sales of locally-built vehicles have increased reliance on exports – primarily to Europe – at a time when European markets are rapidly transitioning to electric vehicles, she said.
“That exposure is becoming increasingly fragile, while South Africa does not yet have a clear and affordable new-energy vehicle pathway.”
Biene identified four urgent challenges: weak domestic market growth, rising imports, increasing export dependency, and uncertainty around the energy transition.
“We need to produce affordable cars and sell affordable cars,” she asserted, adding that realigning the ad valorem tax would immediately support
affordability.
The VW boss also warned that delays in policy reform could have severe consequences for manufacturing communities.
At the same event, president and CEO of Isuzu Motors South Africa (IMSAf) Billy Tom briefed media on the company’s progress eight years after General Motors’ exit.
Placed under full ownership of Isuzu headquarters in Japan in 2018, IMSAf has since repositioned itself as a continental manufacturing and export hub.
In 2025, Isuzu retailed just over 26 000 vehicles locally, representing growth of 12.2% year-on-year. Exports to the rest of Africa increased by 4.5% to
5 371 units. The brand retained its position as South Africa’s leading truck manufacturer in the combined medium and heavy commercial vehicle segments for the 13th consecutive year.
Passenger vehicle sales also strengthened, with Isuzu D-MAX volumes rising by 11.7% and MU-X sales jumping 45.4% following the introduction of the new model. “We have modernised our operations, consolidated our manufacturing footprint and expanded our product
offering, while staying true to Isuzu’s values.”
Central to that performance is the light commercial vehicle segment. Bakkies account for 47% of our revenue,” Tom said. “The D-MAX, supported by the LMX, has become the engine of our growth.” Globally, Isuzu sold 123 000 units in the first half of the year and now expects to reach 250 000 units for the full year – 12% above initial projections.
“This is not just growth; it reflects momentum in our core markets. Africa has been central to that success.”
He noted that Isuzu recorded 24% growth across African markets in the past six months, with more than 26 000 units sold regionally. “Africa is our strategic focus. Everything we build is designed for African conditions.”
Full interviews with Billy Tom and Martina Biene will feature on upcoming SW Motoring podcasts.
