South Africa plans motor industry boost

13 years, 1 month ago - 13 October 2011, Wheels News

South Africa’s The Department of Trade and Industry wants to raise domestic production and employment in the motor industry by designating vehicles for purchase by government departments.

Speaking at the opening of the Johannesburg International Motor Show at the Expo Centre, Nasrec on October 10, 2011, trade and industry minister Rob Davies said - starting with buses - certain vehicles would be designated to be bought by government departments as part of a plan to leverage sales of SA-made goods and added the new “preferential procurement regulations” would come into effect on December 7, 2011.

“The South African automotive industry – manufacturing and retail – contributes at least six percent to the country’s gross domestic product and the sector’s exports constitute almost 12 percent of total exports,” Davies said.

This strong position was made possible by government support through the Motor Industry Development Programme, he added. Investment under the programme since 2000 totalled R32-billion. It will be replaced by the Automotive Production and Development Programme (APDP) in 2013.

About 90 000 people are employed directly in automotive manufacturing, another 200 000 in the retail and aftermarket sectors. Expanding automotive manufacturing to produce 1.2-million vehicles a year by 2020, with the resultant expansion of the component manufacturing industry, are among the key objectives of 2013’s APDP.

Also speaking at the event was the president of the National Association of Automobile Manufacturers of SA (NAAMSA), David Powels, who said JIMS 2011 was taking place during an immensely challenging time in the global economy and it would be naïve to believe that SA was distanced from the global economic woes.

He added that the South African motor industry will illustrate how it has restructured and aligned itself to the complex challenges facing the global motor industry around the world.

“The South African motor industry remains one of the most competitive in the world. It is intensely competitive and demanding with over 1300 models and 61 marques competing for what is, in global terms, a relatively small market. The South African consumer justifiably demands an outstanding product and, equally, the highest levels of after sales service.

“The motor show will be used not only to showcase the South African motor industry and to project its global competitiveness but also to launch new products, technologies and services to a demanding, but highly involved consumer. The outlook for the South African domestic market remains relatively positive with steady growth being forecast in the medium term,” Powels concluded.