Siyabonga Mthembu (BDO) shares sustainability trends in South Africa’s automotive sector

South Africa’s automotive and mobility sector is undergoing a profound transformation, with sustainability emerging as a key driver. Siyabonga Mthembu, partner at BDO, highlights five major sustainability trends currently shaping the industry.

1) Transition to Electric and Hybrid Vehicles
Global demand for zero-emission and sustainable mobility is accelerating. By 2030, electric and hybrid drivetrains are expected to dominate vehicle sales worldwide, with battery and fuel cell technologies emerging as the fastest-growing market segments.

This shift will reshape local supplier ecosystems, driving demand for battery assembly, energy storage, charging networks, and e-mobility innovation hubs.

2) Sustainable Sourcing and Supply Chain Transformation
Sustainability is now a core component of procurement and supplier evaluation across the global automotive value chain. Scope 3 upstream emissions, which can account for up to 80% of a supplier’s total emissions, have become a central focus.

Leading OEMs now consider carbon performance a key tender criterion, requiring Tier 1 and Tier 2 suppliers to map, disclose, and actively reduce their carbon footprints.

3) Sustainable Manufacturing Practices
Sustainable manufacturing has evolved from aspiration to necessity. Key pillars include waste management and circular material use, energy efficiency through renewable sources, and sustainable product design coupled with lean production.

These practices not only reduce environmental impact but also enhance operational efficiency.

4) Circular Economy and Resource Efficiency
The circular economy is emerging as a defining model for the automotive sector, reshaping how value is created across supply chains.

South African suppliers that embrace repair, reuse, and remanufacturing models early are likely to secure a decisive competitive advantage in both domestic and international markets.

5) Technology-Enabled Sustainability
Emerging technologies such as AI, IoT, and blockchain are transforming sustainability across the automotive value chain, from battery lifecycle management to predictive maintenance and transparent sourcing.

Leveraging these tools enables manufacturers and suppliers to optimize operations, reduce emissions, and strengthen compliance with sustainability standards.