According to a report by 360Mo on May 16, global gross output of automobile reached 92.5 million vehicles in 2024, with Africa contributing only 1.18 million, accounting for a mere 1.27% of the gross output. In addition to low output, Africa's automobile manufacturing is highly concentrated, with South Africa and Morocco collectively producing 1.16 million vehicles, accounting for 98.4% of the gross output of the Continent. South Africa remains the leader in African automobile manufacturing, with an output of 632,285 vehicles and a market share of 50.9% in 2024 (54.1% in 2023). Morocco followed with an output of 559,645 vehicles, capturing a market share of 45.5%. In passenger vehicle production, Morocco further extended its leading superiority over South Africa in 2024, manufactured 524,467 vehicles compared to South Africa's 350,384.
The overall capacity of South Africa's passenger vehicle manufacturers is limited.
In the sector of passenger vehicles, South Africa is home to seven automakers (Ford, Nissan, BMW, Toyota, Mercedes-Benz, Isuzu and Volkswagen), while Morocco has only two. However, in 2024, South Africa's production was 174,083 passenger vehicles lower than Morocco’s, and Volkswagen led the South African local market with an output of 167,084 vehicles, while the outputs of other manufacturers were significantly lower. As Africa’s largest automotive market, South Africa recorded a sale of 515,850 new vehicle in 2024 and held 13.36 million vehicles in total. South Africa boasts a mature automotive ecosystem, with 430 suppliers and parts or component manufacturers (engine parts, tires, batteries, transmissions, braking systems, filters, etc.) serving both domestic and international markets. Locally produced models in South Africa include the BMW X3, Mercedes-Benz C-Class, Toyota Corolla, Volkswagen Polo, Hilux, Navara, D-Max and Ranger. Notably, Hyundai Motor and Stellantis Group are establishing production bases in South Africa.
Approximately 62% of South Africa’s automobile produced is exported, primarily targeting the European market. The Country is intended to increase annual production to 1.4 million vehicles by 2035, capturing 1% of the global market share. However, the Country’s persistent electricity supply shortage over years have severely impacted multiple automotive manufacturers. Additionally, the newly implemented U.S. global automotive tariff policy will affect South Africa's annual car export to the U.S., which amount to approximately 30,000 vehicles.
Morocco solidifies its position as Africa's leading passenger vehicle producer
Morocco is home to two major passenger vehicle manufacturers: Renault Group Morocco and Stellantis Morocco, of which, Renault holds an undisputed position as Africa's largest automobile producer. In 2024, Renault's two factories in Tangier and Casablanca set a production record of 413,614 vehicles, with an 8% year-on-year increase, mainly producing Logan, Sandero, Sandero Stepway, Dokker, Renault Express and Lodgy. The growth of production is primarily attributed to Renault Group's establishment of an industrial ecosystem comprising 90 local partners, with a localization rate of 65.5% and local procurement amounting to €2.06 billion. The Group is intended to increase the localization rate to 80% and annual capacity to 500,000 vehicles by 2030. In addition, the Group is actively developing electric and hybrid models to align with the global energy transition trend; Stellantis Morocco's production reached 111,000 vehicles in 2024. The subsidiary of this France-Italy-USA multinational automotive group, relying upon a network of over 70 local suppliers, produces Peugeot 208, Fiat Topolino and Citroën Ami, with the current localization rate of 70%, which is planned to increase to 80%. Morocco's automotive industry boasts a high level of localization, with over 65% of auto parts and components sourced locally, significantly higher than South Africa's 22.6%. Morocco is expected to increase annual production to 1 million vehicles by 2027.