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Automechanika CEO Breakfast Tackles Industry Transformation

Automechanika Johannesburg hosted its final CEO Breakfast for 2025 at the Kyalami Grand Prix Circuit, bringing together senior leaders from across South Africa’s automotive sector for strategic discussions on the industry’s future. The event coincided with the Festival of Motoring and featured keynote addresses from four industry experts.

Victor Radebe, Chief Director of the Programme Management Office in the Gauteng Premier’s Office, opened the session by stressing the importance of transformation and resilience in sustaining the industry.

Sandile Ntseoane, General Manager of the Southern African Vehicle Rental and Leasing Association, highlighted the sector’s recovery after the pandemic and its growing role as an “unseen engine of mobility.” He noted an increased interest in electric vehicles, evolving customer preferences for shorter leases, and the growing use of telematics and AI to manage fleets.

Duane Newman, Partner at EY South Africa, examined the impact of US trade tariffs on automotive exports. He warned that duties on vehicles and raw materials could cost the economy up to $1.6 billion annually and threaten as many as 100,000 jobs. Newman urged companies to focus on supply chain resilience, pricing strategies, and technology partnerships to manage these risks.

Brandon Cohen, National Chairperson of the National Automobile Dealers’ Association, discussed the implementation of new aftermarket service guidelines. He said the changes have opened up competition by allowing independent service providers to work on vehicles without voiding warranties, ultimately benefiting consumers and boosting dealer parts sales.

Providing the broader economic outlook, Nedbank’s Group Chief Economist, Nicky Weimar, pointed to modest recovery, with GDP growth approaching 1% and vehicle sales up nearly 14% year-to-date. She noted that easing inflation and interest rate cuts have improved consumer affordability but cautioned that tariffs, unreliable power, and logistics inefficiencies remain major challenges for manufacturers.

Closing the session, Messe Frankfurt South Africa Managing Director Michael Dehn highlighted demographic shifts in the sector’s audience. He said the Festival of Motoring now attracts a majority of under-40 visitors, with near gender parity compared to a 70-30 male-to-female split in 2019.

Dehn praised the event as an example of the collaboration needed to strengthen the industry, saying: “The calibre of speakers and insights shared reflect our sector’s commitment to addressing challenges through collective expertise and strategic adaptation.”

The breakfast, sponsored by Nedbank, the Automotive Industry Development Centre, and SKF, served as a prelude to the Automechanika Johannesburg trade fair, set to take place at Gallagher Convention Centre from 28 to 30 October.

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