The South African automotive industry, the largest manufacturing sector in South Africa, is extensively subsidised by government through what is now called the Automotive Production Development Programme.

Some economists argue that government gives too much money to the automotive industry compared to its share in job creation and GDP. The motor industry disagrees and argues that a significant amount of South African exports are automotive related goods, although the industry at the same time contributes to SA’s trade deficit by importing 60% of components used in vehicle assembly. This could be countered by increasing the amount of local content used in vehicle manufacture. Further incentivising the creation and use of local content would also increase the number of jobs created in the value chain. While there are over 25,000 people directly employed in automotive manufacturing, over 60,000 people are employed in the component manufacturing industry (including tyres), a further 30,000 in retail and more in other vehicle service related activities like panel beating.

Possibly the support of the motor industry with its mix of mechanised manufacture and skilled labour could become an example of how other existing South African industries could be subsidised and new investment incentivised to create local jobs and local content.