CEO BREAKFAST: COLLABORATION, SKILLS & TECH TAKE CENTRE STAGE
The Automechanika CEO Breakfast was held once again at the German Chamber of Commerce in Forest Town, Johannesburg, drawing a full house of CEOs and senior decision-makers from South Africa’s automotive value chain.
Michael Dehn, Managing Director of Automechanika South Africa, opened the event by welcoming guests and outlining a positive year ahead for the brand which included localised CEO breakfasts in major metropoles around South Africa and an African roadshow to emerging economies to strengthen trade links across the continent.
Maximilian Butek, the new CEO of the Southern African-German Chamber of Commerce, opened by praising the automotive industry’s robust ecosystem. He emphasised the trust built over years among suppliers and manufacturers and welcomed the event as a platform for collaboration to shape the future.
Ipeleng Mabusela, CEO of the Retail Motor Industry Organisation (RMI), delivered a compelling overview of the aftermarket’s vital role. Often underappreciated, this sector handles the “entire life” of vehicles after manufacturing – repairs, parts, tyres and testing. With 13 million vehicles on South African roads averaging 10.8 years old, the aftermarket supports over 300 000 jobs across more than 22 000 businesses, mostly small to medium enterprises (SMEs). It contributes around 2-3% to national GDP, with the broader automotive value chain seeing the aftermarket account for over 54% of value-add (more than R200 billion).
The sector proves resilient, even during economic downturns or global shocks – people still need vehicle fixes, accident repairs, and maintenance. Jobs in the aftermarket have grown at 1.2% compounded annually, outpacing manufacturing. Yet challenges persist: a 31% drop in qualified artisans over the past decade, despite more apprentices starting, due to high dropout rates and skilled workers emigrating to places like Australia and the UK. This skills shortage lengthens repair times, raises costs, reduces roadworthy vehicles, and hinders transformation and youth employment.
Mabusela stressed low barriers to entry in the aftermarket, offering pathways from apprentice to artisan to business owner, ideal for addressing youth unemployment. Key priorities for 2026 include collaboration on:
Building EV skills through new qualifications, short courses on EV safety, decommissioning, and diagnostics.
Centralising vehicle data for better history tracking (accidents, servicing, parts).
Implementing periodic vehicle testing to cut road fatalities (over 11 000 annually) and crash costs (R205 billion+).
Easing compliance for SMEs and promoting end-of-life vehicle recycling
Paul from Lightstone shared data insights showing shifting new vehicle sales dynamics. Interest rate drops boosted sales, but the real driver was a surge in affordable models, especially from new brands (15 launched in recent years). Chinese and Japanese brands now outsell German manufacturers in SA, with more vehicles assembled in India than locally. This pressures local manufacturing, prompting calls for better infrastructure, reduced regulations, and incentives to attract investment.
Greg Cress from Accenture South Africa outlined some global disruptive forces which could create opportunities for SA:
Imminent 1 500 km-range EVs via breakthroughs like solid-state batteries (e.g. new battery advancements offer triple the standard range at 1 500km, can charge 600km in five minutes, and offer longer life span – 100 000 cycles).
Enhanced safety and productivity through autonomous driving (Waymo’s commercial operations, China’s Level 4 robotaxis expanding to Europe).
Vehicle-to-everything connectivity via advanced 5G networks for real-time road awareness.
Shift to “experience spaces” in vehicles and software defining the industry.
Takatso Sello from Nedbank reflected on local challenges such as unreliable energy supply impacting competitiveness, especially against cheaper Chinese imports. He highlighted the EU’s Carbon Border Adjustment Mechanism (CBAM), now fully binding in 2026, affecting exporters with carbon costs – urging proactive decarbonisation and partnerships, as seen in successful sustainability transitions.
The breakfast ended with a call for intentional public-private collaboration to navigate these shifts. Attendees were reminded to be sure to save dates for Automechanika Johannesburg 27-29 October 2026 at Gallagher estates.
Story and pics by Jay Groat
