| #WeAreNAACAM: At the conclusion of the naamsa organised #SAAAW25, Renai Moothilal, NAACAM CEO was interviewed by Fifi Peters, CNBCAfrica to provide an expert analysis on some of the key themes the SA automotive manufacturing sector is grappling with. South Africa’s domestic automotive market is showing signs of recovery. New vehicle sales have risen by 14% year-to-date, supported by declining interest rates and easing inflation. However, underlying this growth lies a significant constraint: imported vehicles now account for 65% of the market, compared to the more balanced 50/50 split a decade ago. Moothilal noted that policy changes including possible higher tariffs would assist high-volume importers develop a business case to invest in local assembly and support domestic component production. He emphasized that this is not an untested approach but a proven policy lever, capable of recalibrating the APDP to reclaim the domestic market for local vehicles. The sector needs to quickly find export diversification opportunities, leverage the AfCFTA and EU FTA, and link these to critical minerals industrialization strategies. With several OEMs implementing job cuts and reduced volumes recently, Moothilal urged reforms to deal with unintended policy outcomes that have favored imports at the expense of local market growth. Renai also reflected on the still available production opportunities linked to ICE/hybrid production, particularly in catalytic converter markets and how these can be linked with the regions strength in PGMs, a key commodity which is resurging in demand globally. With stakeholders from Minister Parks Tau to NUMSA’s Irvin Jim echoing similar sentiments at Auto Week, the case for urgent rapid recalibration is loud. Listen to the interview here: https://www.cnbcafrica.com/media/7759507699231/south-africa-sees-recovery-in-vehicle-sales-market #WeAreNAACAM #DrivingLocalisation #NAACAMProud |
