Pretoria – South Africa is seeking new markets for car exports and is finalising targeted incentives for battery cell localisation, EV component manufacture, clean mobility research and design, and critical mineral beneficiation.
President Cyril Ramaphosa revealed these developments during his visit to the Rosslyn plant on Thursday, 24 July 2025.
The Rosslyn plant, a world-class facility, was the first BMW plant to be built outside of Germany and has been at the centre of the group’s operations since 1973.
“It further stands as proof of the BMW Group’s commitment to the South African economy, to supporting our industrial development, to our national empowerment objectives and to driving innovation in the sector,” remarked President Ramaphosa.
The automotive sector, which contributes approximately 4,9 percent to GDP, supports more than 115 000 direct manufacturing jobs and over half a million across the value chain, is a lynchpin of South Africa’s industrial strategy.
South Africa is the 22nd largest vehicle exporter globally, with main export destinations being the European Union, the U.S., and the UK.
However, President Ramaphosa said the recent announcements on import tariff hikes by the U.S., an important market for SA vehicle exports, “further underscores the need to diversify our export base and accelerate domestic value creation”.
He said the African continent was a growing export market, particularly within the SADC region.
President Ramaphosa said the shift to green mobility and electrification in vehicle production was in line with commitments by countries to reduce emissions and support the transition to a low-carbon, climate-resilient global economy.
“As a country, we have positioned ourselves as a globally competitive destination for automotive manufacturing, and the BMW Group has been an integral part of our journey,” President Ramaphosa said.
“A number of world-class vehicles are manufactured right here at this plant, including both ICE and hybrid models from the BMW X family.
“And now we have reached another milestone with the production of the BMW X3 Plug-in Hybrid Electric Vehicle.
“We are greatly encouraged by this milestone reached by the BMW Group.”
As the transition to battery electric vehicles, plug-in hybrids, and hydrogen mobility gathers momentum, South Africa is perfectly positioned as a key global manufacturing base for the mobility of the future.
“We are determined to ensure there is an enabling regulatory and policy environment,” stated the President.
“Through the Automotive Production and Development Programme and more recently, the Electric Vehicle [EV] White Paper and incentive programme, we have committed to a stable, predictable and supportive framework for companies to invest, localise and grow in South Africa.”
He said incentivising EV production for export and at the same time supporting the growth of the local EV market was an imperative.
“The global shift to clean vehicles presents opportunities for the local component manufacturing sector, whose focus has been on ICE components,” said President Ramaphosa.
“With our significant reserves of critical minerals, we must become a hub for processing and beneficiation.
”We are finalising targeted incentives for battery cell localisation, EV component manufacture, clean mobility research and design, and critical mineral beneficiation.”
President Ramaphosa stated that the local production of the BMW X3 Plug-in Hybrid was a “symbol of trust”.
He added: “Trust in our skills, our workers, our partnerships, and our potential.
“Let us honour this achievement by staying the course, driving transformation, creating jobs, and leading Africa’s industrial future.
“BMW Group is to be congratulated for its commitment to skills development and training for young people.”
This includes its partnership with UNICEF to train learners and educators in coding and robotics in schools and the BMW South Africa IT Hub in Tshwane that employs more than 2 000 professionals, including software engineers and digital specialists.
“We commend BMW for the substantial investment in its training academy, which trains 300 apprentices annually and has since 1978 trained more than 2 000 artisans,” the President said.
“As a founding partner of the Youth Employment Service, BMW has supported over 3 500 youth, with placements across all provinces and in diverse sectors such as retail, IT, education, and health.”
BMW’s commitment to transformation includes active mentorship of young women, the development of black industrialists, and investment in a pipeline of future managers through its Leadership Acceleration Programme.
“BMW’s roots may be in Bavaria, but its beating heart is South African,” said President Ramaphosa.
“We are proud of your presence.
“We are greatly encouraged by your ongoing investment as we strive to build the low-carbon economies of the future.
“We see BMW as an integral part of the South African growth story.”
President Ramaphosa added: “As the Government of National Unity, we welcome the role you continue to play in supporting our drive for inclusive growth and job creation.
“As we prepare for the upcoming South Africa Investment Conference, I invite BMW to once again be a flagship partner.
“Let us work together to deepen localisation, scale up youth training, lead in EV battery development, and support township supplier development.”
He said BMW’s presence in the country was one of mutual interest and shared value.
“To the entire BMW team, you are building more than cars,” the President said.
“You are building a legacy of excellence, inclusion and hope among South Africans.
“We look forward to continuing this partnership and supporting the next chapter of your journey.”
Notable guests included Premier of Gauteng Panyaza Lesufi,
representatives of the German Embassy, Chief Executive Officer of BMW South Africa, members of the management Board of BMW AG, as well as representatives of business and labour.
