Despite a slightly sluggish sales market in South Africa, the vehicle manufacturing industry is expected to grow by just over six percent in 2019. The National Association of Automobile Manufacturers of South Africa (NAAMSA) estimates that 648 000 new vehicles will be produced in South Africa this year.

In 2018, South Africa was accountable for 0.64% of the new vehicles manufactured around the world. South Africa is ranked 15 in the world for the production of bakkies and pick-ups with a market share of 1.24%. With such high demand for bakkies such as the Toyota Hilux and Ford Ranger, South African buyers are driving this market segment.

NAAMSA also predicts that vehicle exports will grow in 2019, which will certainly boost the local manufacturing statistics. However, local vehicle production volumes still face some challenges, especially when it comes to a reliable supply of electricity. Automotive component manufacturers and vehicle assembly plants are heavily impacted by load-shedding. 

NAAMSA is confident that the situation will improve now that the elections are over and the new government takes office. In the meantime, local production volumes are on the right path for growth. Despite reduced domestic sales, the vehicle manufacturing industry in South Africa is growing steadily.

Formex Industries is a metal forming and assembly company that supplies a variety of complex products to the local automotive industry and export market. The company is based in the Nelson Mandela Bay metropole, South Africa’s foremost region for automotive manufacturing and export.

Formex specialises in producing components for the catalytic converter industry, as well as metal components and assemblies for the various vehicles. Formex aims to become one of the foremost suppliers for the South African automotive industry by 2035, aligning itself with the South African Automotive Masterplan (SAAM) which takes effect in 2020.

Formex is a Level 2 B-BBEE supplier with over 80% black ownership, of which more than 40% are black women. The company is owned by Deneb Investments Limited – a subsidiary of Hosken Consolidated Investments Limited (HCI) – one of South Africa’s biggest true B-BBEE companies listed on the Johannesburg Stock Exchange (JSE).

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