Gqeberha hosts landmark automotive industry CEO gathering

Gqeberha, regarded as the heartbeat of South Africa’s automotive manufacturing sector, this week hosted the Automechanika Johannesburg CEO Breakfast for the first time as industry leaders gathered to confront mounting pressures facing the country’s vehicle industry.

Held at the Bluewater Bay Sunrise Hotel on Thursday, the event brought together senior executives, economists, policymakers and automotive stakeholders to discuss the future of vehicle manufacturing, trade and the aftermarket sector in South Africa.

The breakfast session, sponsored by the Coega Development Corporation and Nedbank, forms part of preparations for the upcoming Automechanika Johannesburg 2026, set to take place later this year in Midrand.


Industry leaders warned that South Africa’s automotive sector faces growing pressure from rising imports, weak consumer confidence and increasing global uncertainty.

‘Africa a major growth opportunity’

Dr Paulina Mamogobo from Naamsa – the Automotive Business Council – said Africa remained a major growth opportunity through the African Continental Free Trade Area (AfCFTA), but cautioned that imported vehicles were rapidly dominating the domestic market.

“Imported vehicles now account for 68.5% of total domestic new vehicle sales in the first quarter of 2026,” she said, highlighting the scale of import penetration into the South African market.

Economist Crystal Huntley from Nedbank warned that consumers were likely to come under additional financial pressure in the coming months.

“Higher fuel prices and tighter financing conditions will temper discretionary income and reduce consumer confidence, resulting in more cautious spending,” Huntley said.

Concern over cheaper imported vehicles

Automobile Association of South Africa (AA) CEO Bobby Ramagwede said the growing popularity of cheaper imported vehicles was placing locally produced cars under severe pressure.

“When you introduce cheaper cars, consumers will buy cheaper cars,” Ramagwede said.


He called for urgent policy interventions and stronger implementation strategies to improve South Africa’s competitiveness as a vehicle manufacturing destination.

The decision to host the CEO Breakfast in Gqeberha was seen as symbolic, given the city’s importance to South Africa’s automotive production and export ambitions. Delegates also visited the Coega Special Economic Zone during the programme.

Michael Dehn said the event created an important platform for industry leaders to engage on practical solutions for the sector.

Automechanika Johannesburg 2026 will take place from 27 to 29 October at Gallagher Convention Centre in Midrand.

 

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  • Gqeberha hosted the Automechanika Johannesburg CEO Breakfast for the first time, gathering automotive industry leaders to address challenges facing South Africa’s vehicle sector.
  • Key issues discussed included rising imports (68.5% of new vehicle sales in Q1 2026), weak consumer confidence, global uncertainty, and pressure on local vehicle manufacturing.
  • Industry experts highlighted Africa’s growth potential via AfCFTA but warned about the dominance of cheaper imported vehicles undermining local production.
  • Calls were made for urgent policy interventions to enhance South Africa’s competitiveness and support the domestic automotive industry.
  • The event served as preparation for Automechanika Johannesburg 2026, scheduled for 27-29 October in Midrand, and included a visit to the Coega Special Economic Zone.
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Gqeberha, regarded as the heartbeat of South Africa’s automotive manufacturing sector, this week hosted the Automechanika Johannesburg CEO Breakfast for the first time as industry leaders gathered to confront mounting pressures facing the country’s vehicle industry.

Held at the Bluewater Bay Sunrise Hotel on Thursday, the event brought together senior executives, economists, policymakers and automotive stakeholders to discuss the future of vehicle manufacturing, trade and the aftermarket sector in South Africa.

The breakfast session, sponsored by the Coega Development Corporation and Nedbank, forms part of preparations for the upcoming Automechanika Johannesburg 2026, set to take place later this year in Midrand.

Industry leaders warned that South Africa’s automotive sector faces growing pressure from rising imports, weak consumer confidence and increasing global uncertainty.

Dr Paulina Mamogobo from Naamsa – the Automotive Business Council – said Africa remained a major growth opportunity through the African Continental Free Trade Area (AfCFTA), but cautioned that imported vehicles were rapidly dominating the domestic market.

“Imported vehicles now account for 68.5% of total domestic new vehicle sales in the first quarter of 2026,” she said, highlighting the scale of import penetration into the South African market.

Economist Crystal Huntley from Nedbank warned that consumers were likely to come under additional financial pressure in the coming months.

“Higher fuel prices and tighter financing conditions will temper discretionary income and reduce consumer confidence, resulting in more cautious spending,” Huntley said.

Automobile Association of South Africa (AA) CEO Bobby Ramagwede said the growing popularity of cheaper imported vehicles was placing locally produced cars under severe pressure.

“When you introduce cheaper cars, consumers will buy cheaper cars,” Ramagwede said.

He called for urgent policy interventions and stronger implementation strategies to improve South Africa’s competitiveness as a vehicle manufacturing destination.

The decision to host the CEO Breakfast in Gqeberha was seen as symbolic, given the city’s importance to South Africa’s automotive production and export ambitions. Delegates also visited the Coega Special Economic Zone during the programme.

Michael Dehn said the event created an important platform for industry leaders to engage on practical solutions for the sector.

Automechanika Johannesburg 2026 will take place from 27 to 29 October at Gallagher Convention Centre in Midrand.

 

Visit SW YouTube Channel for our video content

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