NAACAM CEO, Renai Moothilal, recently spoke to Alishia Seckam on Smart Money.
The discussion centred on the most significant topics impacting the automotive components subsector. Renai noted the long-term harm the closure of ArcelorMittal South Africa’s (AMSA’s) long steel division could cause for auto sector localisation ambitions and the positioning of SA as a significant value-adding automotive production destination. As a comparison, countries like China, India, and Japan have the highest number of steel blast furnaces globally, and this has undoubtedly supported the export dominance of vehicles produced in these countries. It is critical that SA preserves this key raw material input that has supported the sector’s competitiveness over the years.
Other current sector trends and topics discussed include:
▪ Rapid growth in imported low-price vehicles which is reducing the market share of domestic manufacturers.
▪ Changing vehicle technology requirements in key export markets.
▪ Evolving geopolitical relations in various trade blocs and the importance of SA remaining in AGOA. As an example of the value chain opportunities created through AGOA, Renai highlighted that a component produced in SA, with AMSA steel as its primary input material, is exported to the US for assembly on the highest-selling EV pick-up in the US market.
Watch the full interview here: https://dailyinvestor.com/business/77476/smart-money-naacam-executive-director-renai-moothilal
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