Johannesburg – The G20 Summit may have drawn to a close, but its ripple effects are only beginning to reshape South Africa’s aftermarket tyre and parts sector. Independent retailers now stand at the forefront of a landscape transformed by strengthened local supply chains, burgeoning electric vehicle demand, and a more connected African market – all supported by international funding and government incentives.
Spotlight on the backbone of mobility
“The summit has shifted the spotlight 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), an affiliate of the Retail Motor Industry Organisation (RMI). “For too long, automotive development discussions focused on manufacturers and multinationals, overlooking the real backbone of vehicle ownership. The G20 outcomes now allow us to reimagine how this sector operates and thrives.”
From raw materials to ready retailers
South Africa’s position in the global critical minerals economy has been elevated by the G20’s new Critical Minerals Framework. By emphasising local processing and value addition, supply chains will be more resilient, costs more manageable, and high-quality tyres and parts more accessible.
“When materials are processed locally instead of exported, manufacturers benefit from lower input costs, and retailers can offer better pricing and sustainable margins,” Petzer explains.
Riding the electric vehicle wave
The continent’s EV market is poised for rapid growth, thanks in part to €750 million in European investment and government tax incentives running until 2036. This is creating a lucrative new customer segment for aftermarket retailers.
“EVs require specialised tyres, brakes, and diagnostic tools. Retailers who invest in training and stock EV-appropriate products will capture this high-value market before larger chains even notice the opportunity,” notes Petzer.
Africa as a single market
The African Continental Free Trade Area (AfCFTA), now backed by G20 initiatives, is opening cross-border retail opportunities. South African retailers can access regional supply chains, establish franchises across the continent, and expand as distributors beyond national borders. “The regulatory framework is being set up specifically to support this kind of expansion,” Petzer adds.
Skills development, jobs, and community impact
G20 commitments on vocational training and apprenticeships are creating a pathway for retailers to nurture skills locally. “TEPA businesses have the opportunity to become incubators for TVET training, upskilling staff, and creating careers in a growing sector,” Petzer says.
Sustainability also offers new business potential. South Africa’s waste tyre management plan allows retailers to explore revenue streams through retreading and responsible disposal. Corporate customers increasingly value sustainable solutions, providing both environmental and financial returns.
Seizing the moment
The G20 summit has highlighted the critical role independent retailers play in Africa’s mobility ecosystem. From EVs to regional expansion and sustainable business practices, opportunities abound. “The time to act is now. Africa’s moment has arrived, and South Africa’s tyre and parts retailers are poised to drive the transformation,” concludes Petzer.
