Vehicle manufacturing in SA moves along

The manufacturing landscape of the South African automotive sector is well and truly moving forward with the finalisation of the SA Automotive Masterplan process and the announcement of the policy that will be used to achieve the objectives of the sector by 2035.

The SA Automotive Masterplan has set out several objectives, including having a localisation rate of 60 percent and doubling employment in the whole sector by 2035.

The National Association of Automotive Component and Allied Manufacturers (Naacam) is of the view that the Masterplan is in the long-term interests of South Africa as a manufacturer of automotive products.

“It is our view that this process has been adequately robust. The end outcome is balanced and we are satisfied that Naacam’s inputs were fully considered. The Department of Trade and Industry, under Minister Rob Davies, should be congratulated for the high levels of engagement, and evidence-based decision-making that led to this announcement,” says Ugo Frigerio, newly elected Naacam president, and also CEO of KAP Automotive.

Accordingly, there is sufficient focus within the amended policy levers to move the domestic supplier base on an upward trajectory in terms of localisation, new ventures and employment creation.

Naacam executive director, Renai Moothilal, states that the conversion of what was previously purely an incentive for vehicle assembly, to one that factors in localisation, is a step change in how assemblers will view domestic sourcing.

“Similarly, the increased reward levels linked to duty credits for value addition will benefit component manufacturers. This will kick-start economic activity in the value chain, and help unlock some of the opportunities around transformation and employment,” Moothilal says.

Naacam has committed itself to assisting the implementing authorities and key industry partners, including the vehicle assemblers and labour, to get the systems and relationships in place that give effect to the planned policy outcomes.