Beth Dealtry, Head: Policy & Regulatory Affairs at NAACAM, said an increase in local production of automotive components is needed to foster sustainable economic growth. She noted that SA needs to double its production volumes and get to producing 1.4-million vehicles annually by 2035 in line with SAAM. This growth in vehicle production would necessarily improve component production volumes, and thus bolster scale economies and ultimately, SA’s global price competitiveness.
Reflecting on the NEV transition, Beth added that, while many local companies are producing components to support domestic OEMs, about one-third are producing components that are primarily exported to the EU and UK. Over half of the value of direct component exports are ICE-specific components. Supporting the diversification of SA’s export basket and the pivot into producing NEV components is essential to sustain long-term component exports.
“Investment incentives, such as the recently announced Automative Investment Scheme 35% cash grant for qualifying NEV component investments, will support local companies’ transitioning into producing NEV components. For those that supply local OEMs, the key enabler of the NEV transition are commitments from OEMs to produce the vehicles locally. This demand certainty will enable the components sector to make the necessary investments to support NEV platforms,” she said.
Read the full article via Engineering News here: Push to increase component volumes gains impetus – NAACAM (engineeringnews.co.za) #WeAreNAACAM #NAACAMProud #DrivingLocalisation