Johann van de Merwe, Chairman of the Tyre, Equipment, Parts Association (TEPA), a proud association of the Retail Motor Industry Organisation (RMI), recently addressed a technical seminar at the Brazil Auto Parts Trade Mission, where heshared valuable insights into the South African automotive aftermarket and the opportunities it presents for international suppliers.
Van de Merwe outlined the economic importance of the sector, which contributes 5.2% to South Africa’s GDP and generates significant employment. With a vehicle parc of over 13 million, growing at 2.5% annually, and an aftermarket valued at R104 billion per year, the sector is both robust and full of growth potential.
He noted that South Africa’s diverse fleet – approximately 70% passenger vehicles and 30% commercial vehicles, with an average age of around 10 years – creates sustained demand for replacement parts, tyres, and accessories. “The profile of the parc, combined with the complexity brought about by high levels of imports, provides ongoing opportunities for component suppliers across a wide range of product categories,” Van de Merwe explained.
Among the most dynamic segments are replacement parts, tyres, and vehicle accessories. He said demand is being driven not only by aging vehicles and frequent maintenance needs, but also by increased consumer interest in customisation andoff-road solutions.
Van de Merwe also pointed to South Africa’s regulatory shift with the implementation of the Competition Commission guidelines. These empower consumers to use independent workshops without voiding warranties and open the door for non-OEM suppliers to compete more effectively. “The Guidelines are a game changer, levelling the playing field, increasing competition, and broadening opportunities for both local and international partners to access the market,” he said.
Van de Merwe said local manufacturers who historically have relied more heavily on the OE segment, now equally have an opportunity to work more collaboratively with the robust aftermarket, particularly on the back of the risks highlightedwith the revised AGOA terms for SAs manufacturing and automotive sector.
“On the import side there is clear potential for Brazilian manufacturers in supplying engine parts, brakes, suspension, and electrical components, as well as in niche areas such as performance upgrades, infotainment, and off-road products. He also highlighted the increasing importance of e-commerce in reaching consumers directly and building brand presence.
“The South African aftermarket is ripe for growth and international collaboration. Brazilian companies, with their strong manufacturing base and competitive offerings, are well-positioned to enter and thrive in this dynamic market,” heconcludes.
