Industry Insights
Inside South Africa's Auto Industry: How APDP Keeps SA Building Cars
The government's Automotive Production and Development Programme has kept car manufacturing alive in SA — here's how it works
S
Sipho Nkosi
Senior Motoring Journalist
25 May 2026
7 min read
South Africa''s automotive manufacturing industry — built over 60 years around plants in Uitenhage, Rosslyn, Silverton, Prospecton and East London — survives and thrives because of a carefully constructed government support programme.
The Automotive Production and Development Programme (APDP), introduced in 2013 to replace the earlier Motor Industry Development Programme, provides volume-based production incentives to manufacturers who meet specified local content thresholds.
**How APDP Works**
Manufacturers earn Production Incentive credits based on manufactured vehicle volumes. These credits can be used to offset import duties on components — allowing manufacturers to source specific components globally (where quality or scale advantages exist) while maintaining local assembly.
**The Numbers**
South Africa assembles approximately 650,000 vehicles per year and exports approximately 380,000 of these globally. Total automotive exports generate approximately R140 billion annually — the single largest manufacturing export category.
**The Manufacturers**
Toyota: Prospecton (Durban) — Hilux, Corolla Quest, Fortuner
Volkswagen: Uitenhage (Eastern Cape) — Polo Vivo, Polo (some)
Ford: Silverton (Pretoria) — Ranger
BMW: Rosslyn (Pretoria) — 3 Series, X3
Isuzu: Struandale (Port Elizabeth) — D-Max, MU-X, commercial vehicles
Mercedes-Benz: East London — C-Class (ended production 2022)
**Post-2022 APDP Phase 2**
The current APDP Phase 2 runs to 2035, providing manufacturers with investment security. The additional EV requirements — manufacturers must begin transitioning toward EV production by 2030 — set the framework for SA''s automotive EV future.
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Written by
Sipho Nkosi
Senior Motoring Journalist