#EngineeringNewsWebinar: Beth Dealtry, NAACAM’s Head of Policy and Regulatory Affairs, shared NAACAM’s outlook for South Africa’s automotive component manufacturing sector during Engineering News’ “Local Manufacturing” webinar held on April 23. She highlighted the dual impact of current global trade disruptions, noting that while they pose challenges, they also open potential opportunities for South African manufacturers to strengthen trade ties with both the African continent and the European Union.
Beth emphasised the need for a strategic, continent-wide approach under the African Continental Free Trade Area (AfCFTA), calling for greater coordination to identify and harness areas of excellence across African nations to support the industrialization of the Continent.
On the domestic front, Beth acknowledged the pressing challenge of slowing demand, noting that vehicle production and sales have remained stagnant while import penetration has increased. This trend has directly impacted production volumes, affecting both original-equipment manufacturers and component producers, and ultimately undermining the sector’s competitiveness due to reduced economies of scale.
However, she highlighted the opportunity of increased localisation, pointing to South Africa’s unique position to capitalise on the growing new-energy vehicle market. With access to abundant raw materials and robust manufacturing capabilities, the country is well placed to localise high value components. Beth mentioned that South Africa has capable, world-class companies, the key now is to increase their exposure and scale.
Beth called for stronger systemic support to grow the sector, highlighting the need for improved testing infrastructure, deeper public-private partnerships, and focused skills development. She encouraged innovative thinking to navigate domestic constraints, enabling local firms to scale and compete globally. Her insights reflect NAACAM’s drive to turn challenges into opportunities and build a resilient, sustainable automotive industry. #WeAreNAACAM #NAACAMProud #DrivingLocalisation