Where SMEs can win in South Africa’s automotive aftermarket

Staff writer, 24 April 2026.

The automotive aftermarket is one of South Africa’s most resilient and economically significant sectors. With more than 22,000 businesses, 80% of them Small and Medium Enterprises (SMEs), employing over 300,000 people and contributing 2.1% to Growth Domestic Product (GDP), the aftermarket is a powerful engine for inclusive growth and entrepreneurship.

But while the sector is rich with opportunity, it is also shaped by long‑standing structural barriers that make it ever so tough for small businesses to be successful. Recent regulatory reforms and industry shifts are beginning to open doors, and SMEs must be prepared to take full advantage of the situation.

Viability of the Automotive Aftermarket for SMEs

The sector seems to be quite a solid proposition for small businesses as it is stable, essential, and constantly evolving, with demand driven by South Africa’s ageing vehicle fleet and rising cost of new vehicles. To paint a much clearer picture of the potential, the aftermarket covers everything that happens after a vehicle leaves the showroom, which is a lot. Maybe the most significant areas to mention are service and maintenance; mechanical repairs; motor‑body repairs; parts distribution and retail; tyres, batteries, and accessories; diagnostics and electronics; as well as fitment centres and specialist workshops.

Emerging opportunities for small businesses

  1. Regulatory reforms

Our reference point is the Competition Commission’s Automotive Aftermarket Guidelines (2024), which intend to break down anti‑competitive barriers that historically excluded SMEs and independent service providers (ISPs). These transformation efforts encourage access to Original Equipment Manufacturers (OEM) technical information, access to original spare parts, fairer allocation of repair work, inclusion of SMEs and historically disadvantaged individuals (HDIs), and reduced dominance of OEM approved networks.

This is a breakthrough for small businesses that want to enter the previously closed value chains.

  1. Demand for affordable service providers

The emerging trend is that consumers are progressively opting to take their vehicles to independent workshops instead of dealership service centres because of the rising economic pressures. Small businesses that offer competitive pricing, reliable workmanship, transparent service, and convenient locations place themselves in good stead to access this growing market.

  1. Skills shortage

The aftermarket sector is faced with a concerning paucity of qualified artisans, particularly in auto electrical systems, diagnostics, hybrid and EV systems, motor body repair, and spray painting.

This lack of technical skills opens space for new entrants, particularly those that put money in training and modern diagnostic tools.

  1. New Energy Vehicles (NEVs)

Fresh niches are being brought about by South Africa’s shift toward hybrid and electric vehicles. Small businesses can leverage emerging opportunities such as battery diagnostics and replacement, EV‑safe workshop conversions, charging‑station installation and maintenance, high‑voltage safety training, as well as software and firmware updates.

The Retail Motor Industry (RMI) has expressed a view that aligning aftermarket skills with NEV growth appears to be a good move for future competitiveness.

  1. Township and Rural Markets

Township and rural areas remain underserved despite having high vehicle density, limited formal workshops, and strong demand for affordable services.

This generates profitable chances for small enterprises that are in mobile mechanics; tyre and battery fitment; parts retail; panel beating and spray painting; as well as fleet maintenance for taxis and small logistics operators.

Any challenges for SMEs to be on the lookout for?

  1. High cost of equipment and technology
  2. Unequal access to OEMs
  3. Biased insurance networks
  4. Slow and inadequate skills pipeline

These challenges can be prohibitive for new SMEs. Although the Competition Commission guidelines are key in unblocking the bottlenecks, implementation is still inconsistent and gradual, making it a bit tricky for small businesses that are trying to scale.

Close out

South Africa’s automotive aftermarket is a high‑potential, high‑demand sector with tangible market access entry points for small business, especially since regulatory reforms, consumer behaviour, and technological shifts have transformed the landscape. That said, the sector also carries structural challenges that require SMEs to be well equipped and supported.

Entrepreneurs must stand ready to take up the available opportunities and navigate the existing complexities to enter the sector and upscale their operations.  

Big opportunities.

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