OPINION: The forgotten backbone of SA’s automotive industry, tell me about this news in (https://www.sabcnews.com/sabcnews/part-of-sas-automotive-sector-no-one-talks-about-and-challenges/)

The article titled “OPINION: The forgotten backbone of SA’s automotive industry”, written by Siphamandla Gwala (Manager: Business Services Outsourcing at BDO South Africa) and published on SABC News, highlights the overlooked role and struggles of small and medium-sized enterprises (SMEs) within South Africa’s automotive sector.Key Points of the Article:

• Economic Significance vs. Reality: South Africa’s automotive industry contributes around 5.3% to national GDP and supports over 110,000 direct jobs (plus another 300,000 across the broader value chain). However, the benefits and growth are not shared equitably across the ecosystem.
• The “Forgotten Backbone”: Small enterprisesranging from local repair shops and backyard mechanics to small parts suppliers and logistics providersplay a foundational role in keeping the automotive sector moving, often operating informally and beyond official statistics.
• Barriers to Growth:
  • Information Gaps and Compliance Costs: Many SME owners have strong technical expertise but lack formal business training. They struggle to navigate complex regulatory requirements, which often demand expensive professional advice from accountants or lawyers. Furthermore, they are frequently unaware of existing development initiatives, such as training grants from merSETA.
  • Technological Disadvantage: Modern vehicles increasingly depend on complex electronic systems, sensors, and computerized components. Up-to-date diagnostic tools, software subscriptions, and OEM certifications are prohibitively expensive for small operators, leaving them reliant on outdated equipment and unable to service newer car models.
  • Access to Finance and Procurement: Structural barriers make it difficult for small businesses to scale, access capital, and win procurement contracts against larger dealerships and well-funded workshops.
• Call for Action: The author argues that unlocking the potential of these grassroots businesses requires active collaboration between government, industry bodies, training authorities, and OEMs. Key priorities include improving communication channels, reducing compliance burdens, and offering affordable training and diagnostic technology to small automotive operators.