BMW SA CEO Warns: Protect Local Production or Risk Losing It

BMW Group South Africa Chairman and CEO Peter van Binsbergen has issued a clear warning for the country’s automotive industry: protect local manufacturing or risk losing it. Speaking in a candid interview with IOL during SA Auto Week 2026, the long-serving executive delivered both a strong performance report and a stark assessment of the threats facing South African vehicle production.

Van Binsbergen, a South African mechanical engineer with 32 years at BMW, highlighted the Rosslyn plant’s record output of 79,200 vehicles last year. The facility can produce between 75,000 and 85,000 cars annually, with 96% of that volume exported to 42 countries. Only about 4% remains in the local market. BMW sells between 13,000 and 14,000 units in South Africa each year and continues to lead the premium segment.

He credited South Africa’s non-aligned foreign policy as a competitive advantage. When US tariffs strained relations with Canada, Canadian buyers turned to South African-built X3s because they were more cost-effective, helping the plant achieve record production.

However, Van Binsbergen raised serious concerns about the rapid rise of Chinese brands, which have grown from virtually zero to 25% of the South African market in just two years. While BMW itself continues to grow, he said imported vehicles are displacing locally produced cars, leading to job losses among suppliers and reduced shifts at some competitors.

“If you’re not selling a locally produced car because an imported car has taken its place, you’ve lost jobs in the long term,” he said. He is engaging directly with the Department of Trade, Industry and Competition, ITAC and Treasury to strengthen the Automotive Production and Development Programme (APDP), which was designed to stimulate and protect local manufacturing.

Van Binsbergen also urged Chinese brands such as GWM and Chery to invest in local production rather than only importing vehicles. Local manufacturing, he argued, would deepen supplier networks, create jobs and deliver broader economic benefits.

Beyond production figures, he pointed to less visible investments, including BMW’s IT Hub in Midrand — the company’s largest in the world — which injects about R4 billion annually into the South African economy through salaries. The company also supports education programmes around Rosslyn, including STEM initiatives with UNICEF.

Looking ahead, Van Binsbergen said the next 12 months will be critical. Success, in his view, will be measured by concrete policy decisions that support local production and by new entrants announcing plans to build factories in South Africa.

His message was unambiguous: without stronger protection and incentives for local manufacturing, South Africa risks eroding a strategic industrial base that supports thousands of jobs and significant export earnings.

https://iol.co.za/news/opinion/2026-10-15-thought-leadership-bmw-sa-ceos-warning-protect-local-production-or-lose-it/

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