Skills shortage threatens automotive sector

South Africa’s automotive industry must urgently address a deepening skills shortage and embrace rapid technological change to maintain its global edge, industry leaders warned at the first Automechanika Johannesburg CEO Breakfast of 2026.

Held at the South African German Chamber of Commerce, the event brought together experts who stressed that the sector’s future growth depended on collaborative action to close skills gaps and adapt to innovations such as electrification, autonomy and connected vehicles.

In his first official address as CEO of AHK Southern Africa, Maximilian Butek highlighted the local industry’s strengths. 

“South Africa’s established supplier network and deeply integrated supply chain are real competitive advantages in an increasingly crowded global market. We must actively promote and protect this ecosystem as a differentiator.”

Retail Motor Industry Organisation (RMI) CEO, Ipeleng Mabusela, underscored the severity of the skills crisis. He cited a 31% decline in artisans over the past decade, despite rising apprentice numbers. 

“Mobility cannot be realised without addressing skills.”

Mabusela described the auto retail and aftermarket as the backbone of mobility employment, accounting for about 70% of jobs in the automotive value chain. Aftermarket employment has grown at a 1.2% compound annual growth rate from 2020 to 2024. He called for “collaboration with intent” across industry, government and training institutions to scale training pipelines.

Lightstone chief analytics office, Paul-Roux de Kock, outlined post-Covid-19 structural shifts in the light vehicle market, including changing demand patterns, pricing dynamics and increased brand competition. 

“The market is getting more crowded and more complex. Businesses need to track shifts in pricing, brand share and supply origins in order to compete effectively.”

Greg Cress, Principal Director: Automotive and eMobility at Accenture South Africa, highlighted the global forces driving change with local implications. 

He emphasised the need for South African OEMs to secure new energy vehicle (NEV) product lines amid the EV trend. He also outlined opportunities in advanced driver assistance systems and autonomy, noting Level 4 autonomous capability in global pilots.

Cress added that connectivity and software were emerging as key battlegrounds.

“Over-the-air (OTA) capability is becoming standard,” he said, referring to vehicles that can receive remote software updates, similar to a smartphone, enabling new features, improvements and fixes without a workshop visit. 

He noted that more than 75% of new models would have OTA update capability.

Messe Frankfurt South Africa managing director, Michael Dehn, said deeper collaboration was essential. 

“The challenges we face today demand unprecedented collaboration.”

He said the company’s 2026 engagement strategy, comprising quarterly CEO breakfasts and six regional roadshows across Southern and East Africa, created platforms for industry leaders to forge partnerships, share intelligence and build resilience through greater connection.

Automechanika Johannesburg 2026 is scheduled to take place from October 27-29 at the Gallagher Convention Centre. More details are available here.