The National Union of Metalworkers of South Africa (Numsa) said on Sunday that 78,000 component manufacturing workers on strike for the last four weeks would return to production lines on Monday after manufacturers made a new wage offer.
Numsa accepted a 10 percent pay rise this year and eight percent in the next two years.
The car components' strike followed three-week long industrial action by workers at car manufacturers and the joint impact of the action dragged down exports by 75 percent last month.
Last week BMW SA said it had stopped "all future plans" to expand in South Africa
because of the strikes.
"The union has taken a conscious decision to end the strike in the automotive component sector," Numsa head Irvin Jim told a press conference in Johannesburg.
"Workers will be addressed tomorrow morning in their places of work, and then after that will resume work."
The industrial action has affected seven plants belonging to major car manufacturers including BMW, Volkswagen, Ford, Mercedes, Toyota and General Motors.
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