In June, NAACAM led auto component sector input to the Department of Trade, Industry and Competition’s (the dtic) hosted two-day stakeholder engagement workshop to launch the review of the South African Automotive Masterplan (SAAM2035) and Automotive Production and Development Programme Phase 2 (APDP 2).
Under the theme, “Challenges, Opportunities and Policy Interventions for the South African Automotive Industry”, discussions focused on assessing progress made by the industry under SAAM35, identifying challenges and opportunities, and considering policy interventions needed to strengthen the sector’s competitiveness, sustainability and transformation.
NAACAM’s presentation focused on three premises:
1) It is the component sector that delivers on substantial employment, skills and tech transfers, new business creation and value addition benefits that stem from automotive manufacturing.
2) There are opportunities for the growth of the component sector, through raw material and minerals processing, AfCFTA integration, ICE and NEV component localisation, and aftermarket and export expansion. Current policy calibration is not unlocking these, and a host of others
3) The component sector is facing structural decline, with 13 plant closures and 7,500 jobs losses over 3 years, 15% of NAACAM members facing delocalisation of existing components and an ongoing pattern of OEM production volumes falling short of forecasts. Miscalibration of existing policy and incentive instruments are contributing to these unintended outcomes.
NAACAM made a submission of policy proposals targeting increased localisation, volume growth, and sustainable employment creation, including defined localisation requirements and improved tariff differentials to stimulate component production in SA.
#NAACAMProud #SAAM2035 #Automotiveindustry #DrivingLocalisation
