South Africa is ranked 19th in the world for vehicle production, accounting for about 0.7% of the world's vehicle output.
Despite its relatively small size and production abilities, South Africa's automotive industry offers a number of competitive advantages to international concerns. These include a world-beating cost ability on short or low-volume runs, competitive tooling costs, and a high degree of manufacturing flexibility.
The local industry also has good access to southern hemisphere and African markets, and offers right-hand drive production facilities.
The right-hand drive models of Mercedes Benz C Class, BMW 3 Series, Toyota Corolla, Ford engines, VW Trucks and VW Golf/Jetta are all built on South African soil. By the end of 2006, these will be joined by the right-hand drive version of General Motors' new H3.
The South African industry boasts several unique technologies, such as differential locks for off-road vehicles, aluminium welding technology for radiators, and the ability to design components such as air cleaners and air conditioners that are able to cope with the higher temperatures and dust levels in Africa.
The country's first-world production facilities are coupled with access to raw materials and cheap electricity, as well as stable transport and telecommunications infrastructure.
The Automotive Industry Development Centre and the Gerotec testing centre near Pretoria are world-class facilities for research, design, testing and training.
New investment opportunities are being created for the industry by the introduction of free trade agreements with the European Union and the South African Development Community, as well as the US government's African Growth and Opportunity Act.
