NAACAM optimistic positive momentum seen at end of ‘tough 2020’ will be sustained this year

The South African component manufacturing sector had a tough 2020, says National Association of Automotive Component and Allied Manufacturers (Naacam) executive director Renai Moothilal.

There is, however, hope that some of the positive momentum seen at the end of last year will be sustained in 2021, 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.

“We have not compiled year-end production and employment numbers yet, but I know of component companies that either closed certain lines or engaged in retrenchment programmes in 2020,” says Moothilal.

“Our last quarterly sample at the end of the third quarter of 2020 saw a close on 8% decrease in component employment, so it’s logical that the sector would have ended the year with significantly fewer employees than it started. Read Full Article: https://bit.ly/3dxTU7D