SUPPLY CHAIN increase will severely impact local original equipment manufacturers( OEMs) operating in South Africa.
Some manufacturers have already reported production reduction, which could have a significant ripple effect across the supply chain, including adjustments to packaging requirements, logistics flow, and demand for reusable transport solutions.
Amid these challenges, SA’ s automotive sector is also navigating pivotal negotiations around wage deals, placing added pressure on OEMs that are already under strain. The growing competition from Chinese and Japanese vehicle imports, which offer strong value at lower price points, are challenging the traditional dominance of OEMs, a structural shift that is not just economic but geopolitical, too.
In this climate, it’ s incumbent on suppliers like us to maintain supply chain stability rather than risk becoming casualties as global capital expenditure declines and appetite wanes for investment in proprietary packaging solutions.
The tariff increase will severely impact local original equipment manufacturers( OEMs) operating in South Africa.
Maintaining supply chain sustainability This is where the value of pooling solutions becomes clear. By tapping into a pooled model, as pioneered by CHEP, companies can access high-quality, reusable packaging without the burden of heavy upfront capital investment. It’ s a financially agile approach and one that has already proven effective globally.
Backed by strong financial infrastructure and global support, our pooling model offers a scalable solution that addresses both operational needs and costefficiency, which is especially helpful for automotive parts and components making their way across the continent.
Ultimately, the goal is to maintain supply chain stability during this critical time. Any disruption, especially line stoppages due to packaging shortages, can be incredibly costly. By ensuring packaging is readily available and strategically positioned, we help our partners keep production running smoothly and maximise throughput.
Hope on the horizon Despite the current situation, not all is doom and gloom for the country’ s automotive sector. There are encouraging developments that point to renewed investment and potential growth, particularly from emerging OEMs.
One of the most promising developments is the entry of Stellantis, which has announced plans to establish a manufacturing facility in South Africa, starting in 2026. This represents a significant vote of confidence in the region’ s long-term potential as a strategic manufacturing base on the continent.
In parallel, Mahindra is reportedly considering a plant in Durban, further signalling growing interest from global players, while Chery South Africa recently announced that it’ s conducting a feasibility study into local vehicle production in SA, indicating a potential shift toward domestic manufacturing that could create jobs and support local supply chains.
If realised, these investments would enhance regional manufacturing capacity and create new opportunities for supply chain partnerships. These developments are important not just from a growth perspective, but also because they reflect a diversification in the OEM base which can help strengthen South Africa’ s resilience to global disruptions and shifts in demand.
Balancing optimism with realism That said, it must be acknowledged that established OEMs continue to face considerable challenges. Longstanding players operating in South Africa remain under pressure from imports, economic constraints and regulatory uncertainty.
As such, the industry sits at a crossroads where both risk and opportunity coexist. Our role as a logistics and packaging partner is to remain agile, solution-oriented and ready to support both legacy and new market entrants alike. � sabusinessintegrator. co. za 75