Johannesburg – South Africa’s automotive industry faces a defining moment as leaders warn that long-term competitiveness will depend on solving a deepening skills shortage while rapidly adapting to technological disruption. These were key themes at Automechanika Johannesburg’s first CEO Breakfast of 2026, hosted at the South African German Chamber of Commerce.
In his first official address as CEO of AHK Southern Africa, Maximilian Butek emphasised the global value of South Africa’s automotive sector, highlighting its strong supplier network and integrated supply chain. He noted that these strengths remain critical competitive advantages in an increasingly crowded global market and must be actively protected and promoted.
Growing Skills Crisis
Retail Motor Industry Organisation (RMI) CEO Ipeleng Mabusela warned that the sector faces a severe skills challenge, revealing a 31% decline in artisans over the past decade, despite increasing numbers of apprentices entering training systems.
Mabusela stressed that mobility, economic participation and road safety are all linked to skills development. He also highlighted that the auto retail and aftermarket sector represents around 70% of total automotive employment, with steady job growth recorded between 2020 and 2024. He called for stronger collaboration between industry, government and training institutions to strengthen training pipelines and enterprise development.
Industry Reshaped by Technology
Industry analysts outlined major structural shifts, including changing vehicle demand, pricing pressures and growing competition as more brands enter the local market. Experts noted that businesses must increasingly track data such as pricing trends, supply origins and brand share to remain competitive.
Technology transformation is also accelerating. Global electric vehicle trends are placing pressure on local manufacturers to secure New Energy Vehicle production lines. Advanced driver assistance systems, vehicle autonomy, connectivity and software-driven features are rapidly becoming central to competitiveness.
Over-the-air software updates are expected to become standard in more than 75% of new vehicle models, allowing vehicles to receive remote upgrades without workshop visits.
Financial and Industry Collaboration
Financial sector representatives stressed the need for customised funding solutions to support the industry’s transition. Sector-specific financing and advisory support will be essential as companies adapt to new technologies and business models.
Industry leaders concluded that collaboration will be critical. Automechanika Johannesburg announced an expanded 2026 engagement programme, including quarterly CEO breakfasts and regional roadshows across Southern and East Africa, aimed at strengthening partnerships and building industry resilience.
Automechanika Johannesburg 2026 will take place from 27 to 29 October at Gallagher Convention Centre.
