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Localisation and Regional Development Are Key to Automotive Growth in South Africa

#WeAreNAACAM: Strengthening localisation and regional development remains central to unlocking sustainable growth in South Africa’s automotive industry, particularly as global supply chains are shifting and competition for investment intensifies.  

While South Africa continues to attract interest from new vehicle manufacturers, it is critical that any investments result in completely knocked down (CKD) production rather than semi-knocked down (SKD) assembly-led operations to derive higher economic returns, including employment creation, localisation and skills development.   During the Engineering News Automotive Webinar NAACAM Head of Policy and Regulation, Beth Dealtry, highlighted that current duty loopholes are benefiting SKD operations at the expense of CKD production and localisation.    

To build a resilient and competitive automotive ecosystem, Beth emphasised the need for a review of the existing APDP2 policy framework to ensure it actively drives bottom-up competitiveness and localisation, while addressing existing distortion in market optimisation. Read the full article here: https://www.engineeringnews.co.za/article/localisation-and-regional-development-seen-as-key-to-driving-auto-sector-growth-2026-01-16
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