As a veteran of the automotive industry( over fifty years, folks), I thought I had seen it all, both the good and the bad. However, the more I look at the current situation, I believe we have now reached the ugly level.
SPEAKING IN TONGUES, WAKE-UP CALLS, AND ALPHABET SOUP
THE PHOENIX
As a veteran of the automotive industry( over fifty years, folks), I thought I had seen it all, both the good and the bad. However, the more I look at the current situation, I believe we have now reached the ugly level.
The South African automotive industry has had its fair share of ups and downs, and I have had a front row seat for most of these. Incentives and threats have been the name of the game, and acronyms are always lurking. South Africa, in the form of the Industrial Development Corporation( IDC), which was established in 1940, decided in the early 1960’ s to support the automotive industry, and some weird and wonderful schemes emanated from their boardrooms over the decades. I believe that providing incentives for local content by weight was right up there in weirdness, but suffice to say that we were treated to a plethora of acronyms and alphabet soup. Who remembers the 1973 / 74 Oil Crisis, the 1978 Financial Crisis, the 1985 Rubicon Speech, the 2000 YTK Crisis, the 2008 Financial Crisis? And then, welcome to acronym heaven- the MIDP, the APDP, AGOA, AAAM, ASCCI, BBBEE, and more, culminating in the pie in the sky SAAM 2035. Look them up for the full descriptions, and all spiced up with port inefficiencies, crazy labour legislation, a rail disaster, municipal decay, and union intransigence. As Irvin Jim( who by the way has a PhD in Glossolalia, said in an article in the Financial Mail of January 22 2026,“ Talk is cheap.”
Ironically, this article appeared one day before a press release from Nissan’ s global PR machine, which started with“ Nissan and Chery SA have reached agreement on the acquisition of Nissan’ s manufacturing assets in Rosslyn, South Africa. Subject to the fulfilment of certain conditions, including regulatory approvals, Chery SA will purchase the land, buildings and associated assets of the Nissan facilities, including of its nearby stamping plant, in mid- 2026. The agreement will see the majority of associated Nissan employees offered employment by Chery SA on substantially similar terms and conditions as today.” The press release concludes by saying that“ following the acquisition of the plant by Chery SA, Nissan will continue to
offer vehicles and services to customers in South Africa, as before, with several new vehicle launches planned for fiscal year 2026 including the Nissan Tekton and Nissan Patrol.” Right.
One week earlier, a Sunday Times article had this to say,“ The Chinese vehicle“ onslaught” in South Africa may be giving local automotive manufacturers the wobbles, but it’ s a wake-up call they need, says Mikel Mabasa, CEO of the Automotive Business Council( Naamsa).” Mabasa says that it is fantastic for our consumers who are now getting a lot better value than they’ ve been getting for the last 10 years. Once again, right. Naamsa also confirms that vehicle imports surged more than 30 % from January last year to November, with Chinese brands accounting for nearly half of all sales. And hold that thought, because in the FM article, it says that“ the rising market share of imported Chinese cars helped fuel an overall R140bn trade deficit with China in the first nine months of 2025. India, however, is an even bigger contributor to a market imbalance where imports make up two-thirds of South African new car sales”. Viva, BRICS, viva. But the prize for quixotic thinking must go the industry expert who estimates that the number of vehicle manufacturers needs to more than double if the industry is to meet its growth goals. Once again, right.
Finally, readers, before you reach for that razor blade, AutoTrader’ s latest pricing and mileage figures highlight a decisive shift in buyer behaviour as Chinese brands convert sceptics into confident second-hand shoppers. Yes, folks, it extends to used vehicles. Enjoy your unemployment.
JANUARY | FEBRUARY 2026 3 WORDS IN ACTION