Transformation report


Transformation report

Supporting the transformation of South Africa's automotive industry

The South African automotive industry plays an indispensable role in the recovery and sustainable development of South Africa's productive economy.

Overview

The automotive industry is a major industrial and economic force that adds real value every day – providing mobility, facilitating trade, creating sustainable jobs, moving people, goods and services, serving communities and creating prosperity for South Africa's people.

The automotive industry's annual contribution is around 6,4% of the country's GDP (2,4% being from the retail segment). In 2020, the export of vehicles and automotive components reached a record amount of R175,7 billion, equating to 13,9% of South Africa's total exports – the country's fifth largest exporting sector out of 104 sectors1.

COVID-19 has highlighted the deep socio-economic and inequality challenges facing South Africa. This has spurred the South African Government to look towards co-operating with the private sector to drive more effective economic inclusion and transformative outcomes.

We share our expertise and experience to contribute to broader national strategies and thought leadership, and to progressing our industry and markets. Our memberships allow us to participate in industry initiatives, build the Motus brand and provide us with access to the thoughts and perspectives of other industry leaders. They also help us to identify opportunities to support localisation in South Africa and investigate new ways in which we can contribute to society at large, over and above our community initiatives.

We continue to work towards transforming our workforce to reflect South Africa's demographics. Executive management recognises that this objective requires an accelerated approach and has tasked the business segments with pursuing more aggressive internal targets supported by effective plans.

Small businesses play a critical role in South Africa's socio-economic recovery, especially in creating desperately needed jobs. It is government's intention to grow local production and manufacturing, and open big business supply chains to small and medium-sized enterprises (SMEs).

Leveraging our entrepreneurial spirit, we are developing sustainable working models for black-owned and managed businesses, which also give Motus access to new markets. Despite the bulk of our purchasing being with OEMs, we continually review our supply chain to identify opportunities to buy from SMEs with a turnover of less than R50 million per annum. Given the nature of our businesses, these opportunities are limited; however, some do exist primarily within our dealership and car rental wash bays and for canteen services at various sites.

1 Source: naamsa I The Automotive Business Council.