Motor industry set to create 16,000 new jobs
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