The final Automechanika Johannesburg CEO Breakfast of 2025 offered a rare window into the strategic pressures facing South Africa’s automotive sector. Duane Newman, Partner at EY South Africa, delivered a stark warning on US trade tariffs, noting that “potential revenue losses of $1.4 to $1.6-billion (±R24.8-billion to R28.3-billion) could result annually, with job losses of 50 000 to 100 000 possible across the economy.”
These estimates are frightening. For the trucking and logistics sector, heavily reliant on supply chain stability, these numbers are more than abstract. They signal potential fleet contractions, reduced freight volumes and increased operational risk.
Newman’s analysis was clear: South African exporters face significant challenges from US tariffs. He urged local companies to prioritise “regulatory monitoring, supply chain optimisation, pricing strategies and technology partnerships” to mitigate the impact.
For trucking operators, this translates into sticking close to your customers to gauge and cater for their changing needs as the US tariffs bite, which may even require a reevaluation of fleet compositions over time. Fleets must also look at how they can enhance operational efficiencies by investing in telematics and AI tools – all of this to reduce exposure to global shocks.
In line with this, Victor Radebe, Chief Director of the Programme Management Office of the Premier for Gauteng Provincial Government, emphasised the need for resilience and transformation.
Nicky Weimar, Group Chief Economist at Nedbank, added that modest GDP growth and rising domestic vehicle sales offer counterweights to export pressures yet structural inefficiencies remain a hurdle.
Meanwhile, Sandile Ntseoane, General Manager of SAVRALA, highlighted the sector’s adaptive capacity, calling the rental and leasing industry the “unseen engine of mobility” that is already stabilising post-pandemic.
These insights underscore a dual reality: domestic demand provides a lifeline but global pressures could still reshape fleet operations and employment in trucking.
The breakfast session served as a precursor to Messe Frankfurt South Africa’s main Automechanika Johannesburg trade fair taking place at the Gallagher Convention Centre in Midrand from 28 – 30 October this year.
Editor’s comment: Although a lot of the discussions revolved around the lower end of the automotive sector (cars), the trucking industry feels the positive or negative impacts of every sector’s good or bad fortunes for, as the RFA’s slogan states: “Without Trucks, South Africa Stops”. The path forward is clear: embrace resilience, leverage technology and prepare for a transformed operating environment. The stakes are high but informed, agile truck fleets can navigate these turbulent trade waters without capsizing.
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