MISA demands that the Automotive Masterplan 2035 must include the retail motor industry
26 August 2026
For Immediate Release
MISA, the Motor Industry Staff Association, has submitted its formal review of the South African Automotive Masterplan (SAAM) 2035 to be extended in line with global best practice from a manufacturing‑centred plan to a strategy inclusive of every worker in the retail motor industry.
Martlé Keyter, MISA’s Chief Executive Officer: Operations, says the Union’s delegation informed representatives from the Department of Trade, Industry and Competition and consultants assisting with the review process, that SAAM has an over emphasis on manufacturing and refers to growth in the aftermarket, but makes no provision as to how this should be achieved.
While SAAM has helped sustain South Africa’s assembly footprint and supported vehicle exports, it has failed on its own targets and seems highly unlikely at this rate to achieve its ambitious goals.
The local manufacturing of vehicle content has slipped below 40% instead of rising toward the 60% goal. Imports now account for roughly two‑thirds of the domestic market and employment growth has been limited.
Keyter says the plan was launched in 2018 with the aim to double employment in vehicle manufacturing to 224 000 jobs. But to date SAAM has merely kept manufacturing plants running without creating more jobs.
SAAM currently explicitly excludes dealership networks, authorised repair facilities and fuel stations. Keyter says globally the word “automotive” refers to one value chain and SAAM should be amended to include the retail motor industry employing more than 311 000 employees as an equal pillar.
“MISA compared the automotive strategies of India, the United Kingdom, Japan and the European Union to indicate to DTIC that successful automotive strategies are broader than vehicle manufacturing plants,” says Keyter.
MISA believes the weakness lies in SAAM’s narrow focus on production volumes and its reliance on incentives without firm, enforceable conditions. Incentives were granted without binding requirements for local content, supplier development or employment outcomes.
To date these incentives have not been used by traditional Original Equipment Manufacturer (OEM’s) to drop their prices to compete with the influx of Chinese and Indian brands to the local market. These brands rapidly transformed the local vehicle market offering affordable luxury vehicles at prices roughly 25% lower than traditional local competitors. The result pre-Covid-19 vehicle sales from September 2025 to date.
“You cannot build a successful automotive industry by protecting only those who build cars while ignoring the far larger number of people who sell, service and maintain them, Growth in manufacturing and growth in retail employment are complementary, not competing. SAAM must protect every worker in the value chain, not just some of them,” says Keyter.
Issued by Sonja Carstens, Manager: MISA Media & Communication Department, on behalf of the Union. For media enquiries, contact Phakamile Hlubi-Majola on 083 367 6417 or email [email protected].
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