OPINION: The forgotten backbone of SA’s automotive industry

South Africa's automotive industry has seen remarkable growth, contributing 5.3% to the nation's GDP and providing jobs for over 110,000 people. However, this prosperity is not evenly distributed within the industry's value chain. Small businesses, including component suppliers, repair shops, logistics operators, and other service providers, play a vital role in keeping the industry running.

Yet, these smaller enterprises often face significant challenges that hinder their growth and competitiveness. Despite being an essential part of the value chain, many SMEs struggle to access finance, markets, skills, and technology. Many small businesses lack formal education or business training, which makes it difficult for them to navigate industry regulations, funding opportunities, and business development programs.

Additionally, compliance costs and limited information about government support initiatives add to their financial burden. While there are programs like merSETA that offer training grants and skills development, many SME owners are unaware of these opportunities due to inadequate communication channels. The Fourth Industrial Revolution has brought technological advancements to the automotive sector, but small businesses often struggle to keep up with the costs of modern diagnostic equipment and advanced technical expertise.

As a result, they may find themselves unable to service newer vehicles. Collaboration among various stakeholders, including government, industry bodies, training authorities, OEMs, and private sector entities, is crucial to unlock the full potential of small automotive enterprises in South Africa and strengthen the industry as a whole.