India Accelerates Into South Africa's Automotive Market

By 2025, half of the cars sold in South Africa are linked to India, either through manufacturing or parts supply, with Mahindra and Tata playing significant roles. Indian imports dwarf other foreign competitors, including China, highlighting a shift that impacts local car manufacturing and pricing trends.

In a dramatic shift within the automotive industry, by 2025, half of all vehicles sold in South Africa are connected to India. This connection comes either through direct manufacturing or the supply of essential components by Indian companies such as Mahindra and Tata, according to a report by Lightstone.

The past year's sales figures highlight Mahindra's ascension, particularly with its successful Pikup series. Despite the perception of burgeoning influence from Chinese vehicle manufacturers, who grasped a mere 11 per cent of the market share in 2024, Indian imports account for a staggering 36 per cent, nearing the contribution of locally produced vehicles.

Lightstone data underscores a marked shift from 2009 when half of South Africa's light vehicles were produced domestically. This evolving trade dynamic, fueled by India's cost-effective production, offers price relief for buyers but presents significant challenges for the local automotive industry.

(With inputs from agencies.)