NAACAM hopes momentum seen at the end of 2020 carries through to the new year

Creamer Media’s Engineering News interviewed NAACAM Executive Director, Renai Moothilal about the impact of Covid-19 on South Africa’s Automotive Component Manufacturing suppliers.

The South African component manufacturing sector had a tough 2020. There is, however, hope that some of the positive momentum seen at the end of last year can be sustained in 2021. says Renai Moothilal.

He adds: “Last year was a tough year. If one thinks about the general state of the domestic automotive market even before the first Covid-19 lockdown, it was already struggling and, of course, Covid exacerbated that.”

However, NAACAM does know that supply to local original equipment manufacturers (OEMs, or vehicle manufacturers), especially those with large export contracts, experienced an uptick in the fourth quarter, and this appears to be continuing into the early part of this year.

“And of course, an announcement such as the recent R15.8-billion expansion by Ford gives some indication of a positive trend for local manufacturing as we enter the 2035 Automotive Masterplan era.”

Moothilal expects 2020 component exports to have fared somewhat better than new-vehicle exports, which experienced a 30% drop. Read full article: https://bit.ly/3azoMkR