Minister Stella Ndabeni calls for reliable infrastructure and competitive local manufacturing while imported vehicles gain ground and automotive suppliers struggle with power disruptions.

Minister of Small Business Development Stella Ndabeni says the environment in which the automotive industry operates plays a critical role in the success of small and medium-sized enterprises (SEMs) facing mounting pressure caused by the country's economic downturn.

Ndabeni said production in motor vehicles, parts and accessories and other transport equipment declined by 2.5% in 2025 compared with 2024.

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Equally, the industry contributed about 5.2% to South Africa's gross domestic product (GDP) in 2025, comprising 3.3% from manufacturing and 1.9% from automotive-related retail, she said.

"The evidence gives us an important message that automotive remains one of the country's most significant industrial sectors, but its contribution cannot be taken for granted."

This was why it was important that the space the businesses operated from remained conducive, said Ndabeni.

"This means electricity supply has to be sustained at all times," she said, so that small businesses didn't waste money on securing services that should be provided by local government, and instead could focus on production to preserve jobs.

Ndabeni was speaking on Tuesday at SME Acoustex, an automotive supplier in Neave Industrial Park, where she conducted an oversight visit ahead of a breakfast with industry roleplayers at the Boardwalk Hotel and...