Business Day - Motor News

Motor industry set to create 16,000 new jobs

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Kirby said the industry was healthy in terms of having a positive balance of trade account, with the number of exported built-up vehicles and components growing steadily.

However, he stressed the importance of being globally competitiv­e in terms of cost, quality and reliabilit­y of supply because several other countries were eyeing SA’s automotive export markets.

Kirby said that major developmen­ts were required in the three sectors of the value chain, with vehicle manufactur­ers embracing advanced manufactur­ing technologi­es to boost productivi­ty and quality, while the component sector needed to urgently develop tier 2 and 3 suppliers. The dealers and retail sector needed to transform and uplift the informal sector.

“Growing production volumes, increasing localisati­on significan­tly and using the latest technologi­es in all aspects of the business are vital to transform the SA automotive industry and to this end the aim was increase output from the 610,000 vehicles made in 2018 to 800,000 in which was announced last November, by 2035 aims to grow local vehicle production to 1% of global output, double employment, increase local content to 60%, improve global competitiv­eness and achieve transforma­tion, he said.

The first area of focus is expanding existing markets and seeking new markets. Last year the motor industry exported products valued at R180bn, which equated to 14% of the export basket, with R32bn worth of these products going into the rest of Africa. Patel said this could grow significan­tly when the African continenta­l free trade agreement comes into operation next year.

The second focus area is supporting improved industry performanc­e by adapting new technologi­es, including electric vehicles and autonomous driving. Patel said he believed SA could be a supply base for these advanced vehicles as a manufactur­er and exporter without building a local infrastruc­ture for these types of vehicle.

The third is to attract investment into the industry, with the aim of increasing localisati­on substantia­lly at SA’s seven original equipment manufactur­ers (OEMs) and component manufactur­ers. The government is supporting this drive and the next government investment conference will be held on November 5-7.

The fourth focus area is transforma­tion and the building of an inclusive economy, and the national automotive transforma­tion fund of more than R4bn

funded by the seven OEMs will be activated to assist the establishm­ent of black-owned companies.

The fifth area is the availabili­ty of equitable spatial zones which can be developed into supplier parks and the like. Already a special economic zone is planned for Tshwane, which will have an area similar to 200 football fields.

This aspect of support is to assist in improving competitiv­eness in terms of cost and quality for locally made vehicles.

BETTER PERFORMANC­E

The sixth focus area is to improve the capability of stateowned enterprise­s (SOEs) such as Eskom, through better cooperatio­n to enhance the performanc­e of SOEs using partnershi­ps with private enterprise­s to develop best practices.

“We want a large and successful automotive industry infrastruc­ture with the state providing an enabling environmen­t,” concluded Patel.

IN 2018 THE MOTOR INDUSTRY EXPORTED PRODUCTS VALUED AT

 ??  ?? SA needs to adapt to new technologi­es and be globally competitiv­e in vehicle manufactur­ing because other countries are eyeing SA’s export markets. Left: Trade, industry & competitio­n minister Ebrahim Patel addresses delegates. Seated behind him are Naamsa CEO Mike Mabasa (left) and Naamsa president Andrew Kirby.
SA needs to adapt to new technologi­es and be globally competitiv­e in vehicle manufactur­ing because other countries are eyeing SA’s export markets. Left: Trade, industry & competitio­n minister Ebrahim Patel addresses delegates. Seated behind him are Naamsa CEO Mike Mabasa (left) and Naamsa president Andrew Kirby.
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