Aug 19, 2025 NAACAM Show 2025, Renai Moothilal, Deputy President Paul Mashatile, Minister Parks Tau, Minister Stella Ndabeni-Abrahams
NAACAM Show 2025 focuses on the road forward
Gqeberha hosted the National Association of Automotive Component and Allied Manufacturers (NAACAM) Show 2025 over the 12th to 14th of August. This 4th edition of the NAACAM Show held in partnership with the AIDC EC took place at the Boardwalk Convention Centre. Featuring a broad spectrum of representation from Local and National government, industry players, automotive OE and component manufacturers and allied suppliers, as well as exhibitors and interested visitors.
The opportune timing of the show, focusing on the current state of the industry and specifically the local component manufacturing sector, with the current challenges including SA’s energy supply and logistics issues, the global move to NEV’s and more recently the imposition of radically higher export tariffs to the USA. In addition, the over 2500 delegates, visitors and exhibitors were given insight into localization – including beneficiation, regional value chains, and the potential of the African continent as a replacement market, as opportunities to establish a growth path going forward.
NAACAM CEO, Renai Moothilal officially welcomed attendees to the show before a host of government dignitaries, including the Nelson Mandela Bay Mayor, who reiterated the city’s aim of supporting the sustainability of current and potentially future automotive businesses in the region, and Eastern Cape MEC for economic development, environmental affairs and tourism, Nonkqubela Pieters, who referred to the provinces strategic role within the automotive sector, whilst acknowledging the threats to business and labour, she identified areas where improvements would be made to improve the business environment. A priority in the province is the diversification and stabilisation of its energy supply, which included the development of wind and solar energy projects and a liquid gas infrastructure.
Minister of employment and labour, Nomakhosazana Meth, related to the labour crisis affecting the sector, with business closures and cut backs, she highlighted Arcelor Mittal's closure of steel operations in Newcastle and Vereeniging and government’s R380m lifeline through InvestSA and the Industrial Development Corporation. Meth made note of Government’s support of the shift towards NEV production, with the allocation of R1bn to kick-start local manufacturing projects, aimed at attracting R30bn in private investment.
Minister of trade and industry Parks Tau spoke to the “stuck narrative” of declining domestic sales and government’s efforts to support the industry. Amongst these were the reforms to the APDP2 regulations, encompassing incentive structures – shifting duty credits to reward local manufacturing, the Tax law amendments of December 2024 – covering EV and Hydrogen vehicle production with a 150% capital allowance for plant, equipment and buildings bought online between March 2026 and March 2036.
He made mention of further delegations to negotiate the punitive import tariffs imposed by the Trump administration. Tau said incentives for local NEV production are forthcoming and that a skills development program with relevant curricula and certification for this sector, are currently being developed by Tshwane University of Technology, Cape Peninsula University of Technology and UNISA.
Tau said governments priority in its critical minerals and metals strategy is the beneficiation of PGM’s for NEV components like batteries and fuel cells. In addition, he said the government was working on eliminating compliance burdens and reducing red tape issues that inhibit investments into the sector, with a view to fast-track investments to within 90days. “We want to grow the sector — to attract more investment into the country, increasing the value-add of our component manufacturers,” he concluded.
Attendees to the first day of the conference were privy to discussions and insights from varied ‘Thought Leaders’ in a number of presentations and panel discussions on the following subjects:-
· Navigating SA’s economic & geopolitical outlook
· Charting the future of SA’s automotive sector
· The global EV revolution
· Unlocking Africa’s role in mineral & material beneficiation for automotive applications
· The future of automotive manufacturing in SA
· Futureproofing the value chain
· Practical sustainability steps for the SA component industry
· Scaling component exports
As well as visiting in excess of 120 component manufacturers and allied supplier stands in the two exhibition halls, dedicated to showcasing the manufacturing excellence from our local component manufacturers over the two show days.
Day 2 launched with an address by Eastern Cape premier, Oscar Mabuyane, who stated that ‘the automotive industry is the anchor of our manufacturing sector value chain, and the first commitment we make as government is to do all in our power to protect this sector to avoid a jobs bloodbath.’ He commented that, ‘delegates in this NAACAM Show have raised concerns the need for Transnet and Eskom to do more in improving their efficiency, facilities, and economic infrastructure to enable manufacturing, logistics and export. It is my responsibility to respond to such genuine concerns from the auto industry - I wish to inform delegates and manufacturing businesses in our province that Eskom is planning to rollout high level scope projects in the Eastern Cape with an investment value of R2.5 billion between 2025 and 2030 to ensure energy security for industries and households.’
He concluded saying, ‘This gathering is not just a meeting of minds; it is a call to action, a call to find solutions to strengthen the current automotive component manufacturing industry and to create a common future for the automotive sector.’
Minister of Small Business Development, Stella Ndabeni-Abrahams acknowledged the the robust discussions and engagements that have already taken place. From Day One’s focus on regional growth, sustainability, global competitiveness and trade dynamics, it is evident the sector is thinking critically about how to navigate a fast-changing industrial landscape. ‘As Government, we will listen closely to see what more we must do. Do we have the right policy toolbox? What are the regulatory and implementation constraints? What are we doing well and where do we need to pull our socks up?’ she said.
My department of Small Business Development remains firmly committed to building a globally competitive and at the same time locally inclusive automotive sector. We believe these are not mutually exclusive goals but closely intertwined. Through localizing the value chain and building connections into regional value chains, and co-creating regional and continental markets, we will ultimately make our automotive industry more globally competitive. Through embracing technology development and the decarbonisation agenda, and building real productive capabilities in our supply chains.
Deputy President, Paul Mashatile opened his address stating, ‘This session takes place at a time when South Africa’s automotive and manufacturing industries are navigating tough times, just as our economy was starting to show signs of recovery. This extraordinary time necessitates collaboration between the government and the private sector to address the growing dependence on imports, infrastructural inadequacies, the transition to electric vehicles (EVs), and the issue of a 30 per cent tariff increase.’
Mashatile stated that the convening of the industry within the NAACAM Show 2025 provided an opportune moment to delineate the road forward for the sector. ‘The automotive sector in South Africa is one of the country's most strategically important and internationally linked industries, accounting for 22.6% of manufacturing output and 5.2% of the country's GDP.’ He said, ‘As the government, we recognise the industry's significant role and see it as the backbone of our economic growth, promoting industrial development and encouraging innovation. I am of the view that by increasing investment in research and development, we can use the power of technology to improve efficiency and sustainability, ensuring that our products and services stay competitive in the global market.
He continued, ‘By nurturing a culture of collaboration and partnership among manufacturers, suppliers, and stakeholders, we can unlock new opportunities for growth and prosperity. This sector, not just in South Africa but in Africa as a whole, has emerged as a critical area of investment, providing substantial prospects for growth and development.
In this context, we must not overlook the significance of the African Continental Free Trade Area (AfCFTA) agreement on economic integration and industrialisation, which is projected to draw additional international investment into the African automotive industry. Moreover, the Free Trade Agreement has the potential to significantly boost the automotive industry across the continent by reducing trade barriers, fostering regional value chains, and harmonising regulations. This could lead to increased production, lower costs for consumers, and a more competitive market. The implementation of this Agreement has the potential to lessen African countries' dependency on developing countries for automotive components and completed vehicles by promoting regional value chains and increasing local production.
Mashatile closed his address on the subject of localisation, saying, “We can increase localisation with existing and potential new original equipment manufacturer (OEM) entrants to market, achieving a 5% growth in SA localisation rate, potentially resulting in R30bn in new local procurement. Moreover, research has indicated that South Africa is well positioned to localise high-value New Energy Vehicle (NEV) components, including fuel cells, thermal management systems, e-axle and high-voltage battery mineral beneficiation and assembly.”
Mashatile ended saying, ‘As we navigate the challenges and opportunities that lie ahead, let us remember that our strength lies in our unity and collective vision for a brighter future.’
After the Deputy President’s walk through of the exhibition halls and departure, the thought leadership panel discussions continued to address the following subjects:-
· B20 & implications for industrialisation & the SA automotive sector
· Transformation in the automotive manufacturing value chain: Creating scale for SMME’s
· Driving demand: Aftermarket as the next growth engine
· Wired for the future: Skills, AI and smart manufacturing
The NAACAM Show 2025 closed with thanks to all the attendees, delegates and exhibitors. In the words of one of the delegates, ‘Now that we have discussed and identified the roads into the future – it’s time for action.’
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