The Eastern Cape is home to three large international vehicle assemblers - DaimlerChrysler in East London and Delta Corporation (formerly General Motors) and Volkswagen in Nelson Mandela Metro.  Ford also produces engines for the domestic and international market at its plant in Port Elizabeth.  Coupled to these major manufacturers are over 150 component suppliers who operate in the province.


The Eastern Cape manufactures half of the country's passenger vehicles and provides 51% of South Africa's vehicle exports.


The Eastern Cape Government remain committed to strengthening this automotive sector in the province and this is evident in the fact that they have undertaken the following initiatives:

• Providing funding for the establishment of the automotive logistics park (ALP) in the Nelson Mandela Metro in support of the automotive industry and its OEM's (first, second and third tier suppliers) for international contracts. The government have committed R30 million over the next five years to develop this logistics park.
• Providing funding for the establishment of the automotive supplier park (ASP) in the East London Industrial Development Zone (IDZ).
• The establishment of a multi-OEM model in the East London IDZ in support of the automotive industry.

Facts and figures

• Total automotive component exports for South Africa for 2007 amounted to R39,1 billion (US$5,2 billion);
• There are 120 global export destinations for South African component exports;
• Investment by original equipment manufacturers (OEM's) between 1995 and 2007 was R29,9 billion (US$3,9 billion); and
• The biggest market for South African automotive component exports is the EU followed by the USA and Canada.

Provincial opportunities that exist in terms of the automotive and component sector include:

• New component manufacture - potential exists for investment into component manufacture in support of the automotive industry in the province.
• Catalytic converters - business opportunities exist for investment in stainless steel, ceramic core & assembly operations directly related to the catalytic converter industry based in Port Elizabeth.
• Automotive tooling, parts and components - opportunities exist for businesses to invest or expand in the areas of tooling, jigs, assembly lines, auto and safety glass, plastic automotive fittings, engine parts and rubber and plastic components.
• Automotive supplier park - the ASP is up and running at the East London IDZ, offering attractive opportunities to component manufacturers, particularly those that supply the nearby Mercedes Benz South Africa operation.
• Business opportunities in the automotive component cluster - co-operation with established first and second tier suppliers for storage solutions, JIT distribution, research and development and training initiatives.
• New vehicle manufacture - the Eastern Cape has been identified as a potential investment destination for a new electric car production and assembly plant for both domestic market and export. The Eastern Cape offers excellent location advantages coupled to access to SADC and African markets.