Rising vehicle imports and uneven production among South African manufacturers weighed on Metair’s component operations during the first half of 2026 with its flagship wiring harness manufacturer, Hesto, reporting a 17% decline in revenue.
Metair said Hesto’s revenue fell to R2.6 billion during the six months ended June 30 while earnings before interest and tax declined by 36% to R136 million. The business remained exposed to fluctuations in production volumes among vehicle manufacturers.
Production among Metair’s major original equipment manufacturer customers was uneven during the period. Toyota’s output increased from 64 011 to 66 074 units while Ford’s production declined by 15 366 units to 46 193.
Volkswagen increased production by 10 171 units to 80 401 while output declined at Mercedes-Benz South Africa and Nissan.
South African vehicle sales increased by 12.9% year on year during the first half of the year with Chinese and Indian imports accounting for most of the growth, Metair said. Vehicle exports declined by 7.8% over the same period, adding to pressure on local manufacturers.
As background to the import trend, Metair cited data from The Automotive Business Council (NAAMSA) showing that imported vehicles accounted for 69% of new light vehicles sold in South Africa in 2025, up from 63% in 2024 and 59% in 2023.
Locally assembled vehicles consequently represented less than a third of the market – their lowest share on record. India supplied 56% of imported vehicles in 2025 and China 23%, together accounting for almost 80% of imports.
Growing import penetration suppressed local production and demand for locally manufactured components, Metair said. Localisation remained below industry targets while logistics, energy and infrastructure constraints continued to hamper exports.
Metair described the automotive manufacturing sector as being at a “critical crossroads” with government decisions arising from the review of the Automotive Production and Development Programme crucial for sustaining production, increasing localisation and protecting export markets.
