AUTOMECHANIKA JOHANNESBURG CEO BREAKFAST: deliberate approach to Electric Vehicle( EV) adoption and the increasing reliance on technology-driven fleet management solutions to enhance efficiency and service delivery.
The potential ramifications of US Trade Tariffs were comprehensively analyzed by Duane Newman, Partner at EY South Africa. Newman presented a stark assessment of the Trump administration ' s tariffs – a 25 % levy on automotive products and a 50 % tariff on steel and aluminum. He warned of the severe economic consequences, projecting potential annual revenue losses ranging from $ 1.4 billion to $ 1.6 billion for the South African automotive industry, coupled with an alarming forecast of 50,000 to 100,000 potential job losses. In response to this looming threat, Newman provided strategic advice to local companies, emphasizing the critical need for diligent regulatory monitoring, optimization of intricate supply chains, astute pricing strategies, and the cultivation of strategic technology partnerships to mitigate adverse impacts.
Brandon Cohen, National Chairperson of the National Automobile Dealers ' Association( NADA), lauded the recently introduced Aftermarket Service Guidelines. He enthusiastically praised these new regulations for effectively opening up the warranty service market, a move anticipated to foster healthy competition between independent service providers and established franchise dealers. Cohen highlighted the multifaceted benefits of this development, including enhanced consumer choice and affordability, and surprisingly, a notable boost in dealer parts sales, indicating a symbiotic relationship rather than pure competition.
A comprehensive Economic Outlook and Analysis of Domestic Demand was presented by Nicky Weimar, Group Chief Economist at Nedbank. Despite acknowledging persistent challenges such as the aforementioned US tariffs and South Africa ' s ingrained structural issues— including struggling municipalities, prohibitively expensive power, and inefficient logistics— Weimar offered a cautiously optimistic assessment. She pointed to a modest but discernible economic recovery, evidenced by robust domestic vehicle sales( registering a commendable 13.8 % year-to-date increase). Further positive indicators included a declining inflation rate( now at 3.5 %) and recent interest rate cuts, all of which contribute significantly to improved consumer affordability and are projected to fuel continued growth in domestic vehicle demand.
Finally, Michael Dehn, Managing Director of Messe Frankfurt South Africa, shared compelling insights into Evolving Market Demographics, specifically in relation to the Festival of Motoring. Dehn observed a notable shift towards a younger audience, with the majority of attendees now under 40. Furthermore, he highlighted a significant narrowing of the gender gap, moving from a previously maledominated ratio of 70-30 in 2019 to near parity, indicating a broader appeal of automotive events to a more diverse demographic.
In his concluding remarks, Dehn profoundly emphasized the pervasive collaborative spirit and the exceptionally high calibre of speakers present at the CEO Breakfast. He asserted that these elements were a clear reflection of the automotive sector ' s unwavering commitment to collectively addressing its challenges through shared expertise and a strategic embrace of adaptive measures, paving the way for a resilient and innovative future.
SEPTEMBER 2025 25 WORDS IN ACTION