South Africa's Auto Industry in Transition as Mncane Mthunzi Takes the Helm
Naamsa chooses new CEO amid challenges facing local vehicle exports and industry evolution.
The Full Story
Naamsa has appointed Mncane Mthunzi as its new CEO, effective immediately, filling the role previously held by Mikel Mabasa, who left in April to pursue personal interests. This appointment comes at a critical juncture for South Africa’s automotive industry, which is grappling with significant export challenges due to a 25% tariff imposed by the United States under its Trade Expansion Act, taking effect in April 2025. The initial impact of these tariffs has been severe; vehicle exports to the U.S. plummeted by 83% in 2026, marking a downturn from 25,544 units to just 6,530.
Notably, Mercedes-Benz C-Class models produced in East London were chiefly affected, with the local plant having suspended production earlier due to these circumstances. The downturn reflects a growing socioeconomic crisis, with Naamsa describing the situation as 'a socioeconomic crisis in the making.' Despite challenges, South African manufacturers have sought to adapt, exporting a record 414,268 units in 2025.
However, the pressure is mounting as exports fell by 5% year-on-year in the second quarter of 2026, with manufacturers facing port congestion that has led some to airfreight components. Alongside this, the industry is also transitioning to new energy vehicles amid calls for a cohesive policy framework from the government. CEOs within the sector, including Toyota South Africa's Andrew Kirby, have voiced concerns over potential deindustrialisation without urgent governmental support.
Peter van Binsbergen, Naamsa's president and BMW Group South Africa's CEO, underscored the significance of this appointment, stating, 'We are entering a period that will fundamentally determine the future structure and competitiveness of our sector.' Mthunzi himself acknowledged the challenges ahead, advocating for competitive strategies essential for securing investment and technology to foster growth in South Africa’s automotive sector. His leadership will be pivotal in steering the industry through this transitional phase and ensuring its resilience and future competitiveness on a global scale.
As Mthunzi steps into his role, the auto industry stands at a crossroads where strategic leadership is vital for navigating both the immediate fallout from tariffs and the long-term challenges posed by technological advances in vehicle production and market demands. With the right policies and direction, there is hope for revitalising this critical sector of the South African economy, ensuring that the successes of the past translate into future prospects for growth and sustainability in the automotive landscape. Mthunzi’s mandate stretches beyond merely leading an industry association; it encompasses a broader vision of guiding South Africa's crucial industrial sector towards a transformative future. In summation, the automotive industry is at a defining moment where new leadership is expected to forge paths that ensure survival and growth amid significant challenges, paving the way for a re-energised sector ready to compete in the global marketplace.
Why It Matters
Mncane Mthunzi's appointment as Naamsa CEO coincides with crucial challenges for South Africa's automotive exports, demanding urgent and strategic action for industry survival and growth in a changing global landscape. Their resilience and adaptability will be key to overcoming upcoming hurdles.
What's Next
Mthunzi will prioritise addressing the immediate issues posed by U.S. tariffs and working towards establishing a robust policy framework to support the transition to new energy vehicles, aiming to revitalise the automotive industry for future competitiveness.