South Africa’s automotive sector is under mounting strain. Vehicle imports from China are increasing rapidly, while local sales of domestically assembled cars remain sluggish.
The result: shuttered factories, job losses, and missed production targets.
In the past two years alone, 12 companies have closed and 4 000 workers have lost their jobs, according to South Africa’s Minister of Trade, Industry and Competition, Parks Tau.
Vehicle exports are also taking a hit. In the first quarter of 2025, shipments to the United States dropped 73 percent. By April, the decline deepened to 80 percent, and in May it reached 85 percent. The steep fall follows Washington’s decision to impose a 30 percent tariff on South African imports.
Isuzu’s big plans for SA
Amid these pressures, Isuzu Motors South Africa is positioning itself as Africa’s hub for truck manufacturing and exports. Chief executive Billy Tom confirmed discussions with Japan about relocating more commercial truck production to South Africa, to scale up exports to West Africa.
Central to this plan is localisation. Isuzu has already raised local content in its vehicles from 15 percent six years ago to around 22–23 percent today, and it is targeting 45 percent. Trials of locally built truck bodies are underway, though some components are still imported from China and the Middle East.
Isuzu also has a strong regional footprint to build on. The company already exports pickups to more than 30 African countries and aims to expand volumes further as South Africa takes on a bigger role in its global supply chain.
The strategy could inject momentum into a struggling sector, creating jobs and securing South Africa’s place as a manufacturing hub.
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