| The entry of new OEMs into South Africa presents an important opportunity to grow local automotive manufacturing, deepen localisation and create new opportunities for the country’s component suppliers in new technology linked to NEVs. This was among the key messages from NAACAM CEO Renai Moothilal during an Engineering News/Metair webinar on “The Future of South Africa’s Automotive Component Industry”, which explored localisation, new-energy vehicles (NEVs), investment and the impact of rising vehicle and component imports on the local supplier base. Renai highlighted that the opportunity presented by new OEM entrants, lies in converting their growing presence in the South African market into local production, investment and greater sourcing from South African component manufacturers. As Renai noted: “What we would not want is new entrants who effectively bring in all their components on containers and simply assemble vehicles for sale in South Africa and other markets.” This becomes increasingly important as the industry transitions towards NEVs. New opportunities are emerging in batteries, electric motors, power electronics, high-voltage wiring harnesses and thermal-management systems, but supplier investment will ultimately depend on OEM production commitments and sufficient certainty around future volumes. With South Africa’s automotive masterplan targeting an increase in local vehicle content from 38% to 60% by 2035, Renai emphasised the need for clear and measurable local-content requirements that encourage genuine local value addition. |
