According to NAACAM’s Head of Policy and Regulatory Affairs, Beth Dealtry, “despite vehicle production reaching pre-Covid levels, growth in localisation remains stagnant”. However, NAACAM remains optimistic about the industry’s future growth and potential.
To support localization, Beth emphasises the need for a renewed approach: “NAACAM has been vocal in saying that we need to look at bottom-up competitiveness and support, and this does not just sit in the components sector but also includes locally beneficiated materials. This could be achieved through incentivisation and increased recognition of these inputs in APDP localisation incentives compared to assembly credits.”
Reflecting on export opportunities and challenges, Beth highlighted that the possible loss of the US market would likely impact regional value chains, employment and skills development. The automotive sector is dependent on economies of scale so any loss of volume may have adverse implications for the long-term competitiveness of the sector.
South Africa and other Sub-Saharan African countries, however, hold many of the critical raw materials utilised in high-value electric vehicle components and this opportunity should be leveraged to become a key global player in the NEV space. Read the full article via Engineering News: https://www.engineeringnews.co.za/article/association-highlights-stagnation-of-localisation-levels-2025-04-11
