From Distribution to Manufacturing: Taiwanese Businesses Build Automotive Parts Supply Chain System in South Africa
Established in 2018, the Taiwanese-funded automotive parts company GIA has solidified its position in the African market through local manufacturing and integration of regional supply chains. It has achieved success in both OEM supply and the aftermarket, providing parts to major automakers like BMW and Nissan.
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- 📰 Published: May 1, 2026 at 12:44
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(Central News Agency reporter Li Yi-ru, Johannesburg, May 1st exclusive report) South Africa's automotive industry has continuously increased its local manufacturing ratio in recent years. A Taiwanese-funded enterprise established in South Africa in 2018 has firmly established itself in the South African automotive parts industry through local manufacturing and integration of regional supply chains, successfully expanding its market to African countries such as Mozambique and Zimbabwe.
According to the latest "2025 Automotive Trade Manual" released by the National Association of Automobile Manufacturers of South Africa (NAAMSA), the output value of the automotive and related parts industry accounts for approximately 22.6% of the manufacturing industry's total output value. The South African government also promotes localization policies, driving manufacturing investment, with the current local production ratio at about 40%; according to the "South African Automotive Master Plan 2035," the target is to increase this to 60% by 2035.
Driven by industrial policies and market demand, a Taiwanese-funded automotive parts enterprise located in Krugersdorp, west of Johannesburg, is expanding into the African market through local manufacturing and integration of regional supply chains.
Gemoto Industrial Alliance (GIA) was established in 2018 by its head, Carl Lee (Li Qing-long), and four other Taiwanese shareholders with decades of industry experience.
Carl Lee went to South Africa for development in 1997, and in 2000, he joined Sterling Import and Export Company to operate automotive parts distribution, building a market foundation from retail and import wholesale. In 2018, he co-founded GIA with partners, integrating mold development, precision processing, and distribution channel management to establish a supply chain system from product development to mass production, expanding business to African countries such as Mozambique, Zimbabwe, Zambia, and Botswana.
GIA is one of South Africa's important local automotive plastic parts manufacturers in the aftermarket, with some product market penetration rates reaching 70% to 80%. In original equipment manufacturing (OEM), it supplies car manufacturers such as BMW, Nissan, Ford, and Volkswagen.
Lo Ching-jung, head of the Economic Division of the Taipei Liaison Office in South Africa, and Overseas Community Affairs Council Secretary Li Yong-sheng visited the company in February. Lo Ching-jung stated that GIA's expansion from distribution to manufacturing and entry into the OEM supply chain system is one of the representative cases of Taiwanese businesses transitioning from circulation to manufacturing in South Africa.
Carl Lee said that in recent years, they have hosted visits from various international car manufacturers and government agencies to evaluate their production capacity, processes, and supply capabilities; officials from South Africa's Department of Trade, Industry and Competition (DTIC) also visited to understand GIA's manufacturing and localization development.
GIA's factory covers an area of approximately 220,000 square meters, with about 50,000 square meters currently in use, equipped with injection molding, painting, and assembly lines, and incorporating automated equipment. The painting line uses robotic arms for spraying and baking according to set procedures, and after the products are completed, they enter the assembly and inspection processes.
The factory has measurement and testing spaces, where measurements are taken in a constant temperature environment to reduce the impact of temperature on precision. Quality Manager Chris Mogale stated that when product deviations occur, they re-verify and confirm with customers to meet OEM specifications.
In addition to automotive parts, GIA also produces plastic products related to furniture, bathtubs, road engineering, and underground pipelines, applied in road paving and fiber optic facilities, and exported to the Australian market.
Therry Lu (Lu Jia-yi), a Taiwanese-South African project manager, introduced GIA's reverse engineering capabilities, stating that customers only need to provide finished products, and GIA can independently restore the design, send it to Taiwan for mold opening, and then mass produce in South Africa.
In mold development, the company also offers different models according to customer needs, including the company investing upfront and recovering costs from orders, or the customer bearing the costs themselves and owning the mold. Recently, laser welding equipment has also been introduced, and engineers are operating and training to improve process capabilities.
Operating a company in South Africa must comply with the Black Economic Empowerment (BEE) policy. This policy aims to correct economic inequalities left over from the apartheid era and promote the participation of disadvantaged groups in economic activities through equity, diversified employment, and other mechanisms. Carl Lee stated that with the requirements of OEM customers, the enterprise has implemented relevant systems, gradually adjusting its operating model through diversified employment, educational investment, and youth employment programs.
In addition, Carl Lee and the Tzu Chi Foundation have long been involved in public welfare, which extends to the company's operations.
During the COVID-19 pandemic, GIA supported disadvantaged communities and continues to cooperate with multiple local non-profit organizations in areas such as services for the visually impaired, elder care, and youth development, serving 300 to 800 people per event. With improved planning and coordination capabilities, up to two events can be held in one day. Internally, 50 to 70 employees also participate in volunteer services, forming a corporate social service operating model.
In recent years, with Chinese enterprises entering the African market, market competition has increased. Carl Lee said that GIA continues to deepen its manufacturing capabilities and market integration based on its channel advantages, expanding into African and other markets, and welcomes Taiwanese manufacturers interested in investing in South Africa to cooperate to strengthen local supply chains and regional layouts. (Editor: Chen Yen-chun) 1150501
According to the latest "2025 Automotive Trade Manual" released by the National Association of Automobile Manufacturers of South Africa (NAAMSA), the output value of the automotive and related parts industry accounts for approximately 22.6% of the manufacturing industry's total output value. The South African government also promotes localization policies, driving manufacturing investment, with the current local production ratio at about 40%; according to the "South African Automotive Master Plan 2035," the target is to increase this to 60% by 2035.
Driven by industrial policies and market demand, a Taiwanese-funded automotive parts enterprise located in Krugersdorp, west of Johannesburg, is expanding into the African market through local manufacturing and integration of regional supply chains.
Gemoto Industrial Alliance (GIA) was established in 2018 by its head, Carl Lee (Li Qing-long), and four other Taiwanese shareholders with decades of industry experience.
Carl Lee went to South Africa for development in 1997, and in 2000, he joined Sterling Import and Export Company to operate automotive parts distribution, building a market foundation from retail and import wholesale. In 2018, he co-founded GIA with partners, integrating mold development, precision processing, and distribution channel management to establish a supply chain system from product development to mass production, expanding business to African countries such as Mozambique, Zimbabwe, Zambia, and Botswana.
GIA is one of South Africa's important local automotive plastic parts manufacturers in the aftermarket, with some product market penetration rates reaching 70% to 80%. In original equipment manufacturing (OEM), it supplies car manufacturers such as BMW, Nissan, Ford, and Volkswagen.
Lo Ching-jung, head of the Economic Division of the Taipei Liaison Office in South Africa, and Overseas Community Affairs Council Secretary Li Yong-sheng visited the company in February. Lo Ching-jung stated that GIA's expansion from distribution to manufacturing and entry into the OEM supply chain system is one of the representative cases of Taiwanese businesses transitioning from circulation to manufacturing in South Africa.
Carl Lee said that in recent years, they have hosted visits from various international car manufacturers and government agencies to evaluate their production capacity, processes, and supply capabilities; officials from South Africa's Department of Trade, Industry and Competition (DTIC) also visited to understand GIA's manufacturing and localization development.
GIA's factory covers an area of approximately 220,000 square meters, with about 50,000 square meters currently in use, equipped with injection molding, painting, and assembly lines, and incorporating automated equipment. The painting line uses robotic arms for spraying and baking according to set procedures, and after the products are completed, they enter the assembly and inspection processes.
The factory has measurement and testing spaces, where measurements are taken in a constant temperature environment to reduce the impact of temperature on precision. Quality Manager Chris Mogale stated that when product deviations occur, they re-verify and confirm with customers to meet OEM specifications.
In addition to automotive parts, GIA also produces plastic products related to furniture, bathtubs, road engineering, and underground pipelines, applied in road paving and fiber optic facilities, and exported to the Australian market.
Therry Lu (Lu Jia-yi), a Taiwanese-South African project manager, introduced GIA's reverse engineering capabilities, stating that customers only need to provide finished products, and GIA can independently restore the design, send it to Taiwan for mold opening, and then mass produce in South Africa.
In mold development, the company also offers different models according to customer needs, including the company investing upfront and recovering costs from orders, or the customer bearing the costs themselves and owning the mold. Recently, laser welding equipment has also been introduced, and engineers are operating and training to improve process capabilities.
Operating a company in South Africa must comply with the Black Economic Empowerment (BEE) policy. This policy aims to correct economic inequalities left over from the apartheid era and promote the participation of disadvantaged groups in economic activities through equity, diversified employment, and other mechanisms. Carl Lee stated that with the requirements of OEM customers, the enterprise has implemented relevant systems, gradually adjusting its operating model through diversified employment, educational investment, and youth employment programs.
In addition, Carl Lee and the Tzu Chi Foundation have long been involved in public welfare, which extends to the company's operations.
During the COVID-19 pandemic, GIA supported disadvantaged communities and continues to cooperate with multiple local non-profit organizations in areas such as services for the visually impaired, elder care, and youth development, serving 300 to 800 people per event. With improved planning and coordination capabilities, up to two events can be held in one day. Internally, 50 to 70 employees also participate in volunteer services, forming a corporate social service operating model.
In recent years, with Chinese enterprises entering the African market, market competition has increased. Carl Lee said that GIA continues to deepen its manufacturing capabilities and market integration based on its channel advantages, expanding into African and other markets, and welcomes Taiwanese manufacturers interested in investing in South Africa to cooperate to strengthen local supply chains and regional layouts. (Editor: Chen Yen-chun) 1150501