While the G20 Summit has drawn to a close, its ripple effects on South Africa’s aftermarket tyre and parts sector are only beginning to take shape.
Independent retailers stand to gain from stronger local supply chains, significant investment in electric vehicle (EV) production, and the emergence of a unified African market – all underpinned by international funding and government-backed incentives.
“The summit has shifted attention to a sector that truly keeps Africa moving – independent retailers and fitment centres,” says Dylan Petzer, National Vice-Chairman of the Tyre Equipment Parts Association (TEPA), part of the Retail Motor Industry Organisation (RMI). “For years, automotive development discussions centred on manufacturers and global corporations, while the real backbone of vehicle ownership was overlooked. The G20 outcomes now give us the chance to rethink how this sector operates and prospers.”
South Africa’s position in the global critical minerals economy has been strengthened through the G20’s new Critical Minerals Framework. By processing raw materials locally rather than exporting them, supply chains will become more resilient, costs will fall, and high-quality tyres and components will be more readily available.
“When materials are refined locally, manufacturers enjoy lower input costs, enabling retailers to offer competitive pricing and maintain sustainable margins,” Petzer explains.
With €750 million in European investment and tax incentives extending to 2036, the EV revolution is creating a lucrative new customer base.
“Electric vehicles require specialised tyres, braking systems, and diagnostic tools. Retailers who invest in training and stock EV-compatible products will capture this premium market before the big chains catch on,” Petzer advises
The African Continental Free Trade Area (AfCFTA), supported by the G20, is paving the way for cross-border retail growth.
“South African retailers can now tap into regional supply chains, establish franchises across the continent, and even become distributors beyond national borders. The regulatory framework is being tailored to enable this expansion,” Petzer notes.
G20 commitments to vocational training and apprenticeships present opportunities for retailers to nurture local talent.
“We see TEPA businesses becoming hubs for TVET training, upskilling staff, and creating careers in a sector that’s on the rise,” says Petzer.
Sustainability is another emerging revenue stream. South Africa’s waste tyre management plan supports retreading and responsible disposal, aligning with the circular economy.
“Corporate clients increasingly value environmentally responsible solutions, offering retailers both ecological and financial benefits,” Petzer adds.
The G20 Summit has underscored the vital role of independent retailers in keeping Africa mobile. Opportunities abound – from EV adoption to regional expansion and green business practices.
“The time to act is now. Africa’s moment has arrived, and South Africa’s tyre and parts retailers are ready to drive the transformation,” concludes Petzer.
