Skip to content
  • Log In
  • Register
Menu
  • Log In
  • Register
  • Home
  • About
    • Overview
    • National Executive Committee
    • Regional Committees
  • MEMBER FIRMS
    • Our Members and Classified Products
    • Business Guide Request
  • KNOWLEDGE CENTRE
    • Automotive Policy and Related
    • Quarterly NAACAM Local Value Index
    • Automotive Export Manual
    • Selected Industry Contacts
    • President and Executive Insights
  • NEWS
    • News
    • Engineering News Feature
    • NAACAM Newsletter
    • EVENTS
      • Golf Day
      • NAACAM Holds Black Supplier Day,
        AGM and Annual Dinner with Keynote
        Speaker Springbok Schalk Brits
      • International Automotive Parts Shows
      • NAACAM Show 2019
  • High Gear
  • CONTACT
Menu
  • Home
  • About
    • Overview
    • National Executive Committee
    • Regional Committees
  • MEMBER FIRMS
    • Our Members and Classified Products
    • Business Guide Request
  • KNOWLEDGE CENTRE
    • Automotive Policy and Related
    • Quarterly NAACAM Local Value Index
    • Automotive Export Manual
    • Selected Industry Contacts
    • President and Executive Insights
  • NEWS
    • News
    • Engineering News Feature
    • NAACAM Newsletter
    • EVENTS
      • Golf Day
      • NAACAM Holds Black Supplier Day,
        AGM and Annual Dinner with Keynote
        Speaker Springbok Schalk Brits
      • International Automotive Parts Shows
      • NAACAM Show 2019
  • High Gear
  • CONTACT

R66bn worth of component exports at risk from move to EVs, but it’s not all bad news – Naacam

Catalytic converters, engine parts, engines, clutches/shaft couplings, silencers/exhausts and ignitions/starting equipment are the component groupings most at risk from the global move to electric vehicles (EVs), as they are not required in these types of vehicles, says National Association of Automotive Component and Allied Manufacturers (Naacam) executive director Renai Moothilal.

Other components also at risk are transmission shafts/cranks and gearboxes, he adds.

These components are also not required within EVs, but their manufacturers’ existing capabilities offer them the opportunity to pivot and join the EV supply chain.

In 2021, automotive component exports from South Africa increased by 27% to a record R69.2-billion, up from R54.5-billion in 2020.

Catalytic converters, at R35-billion, comprised 50.4% of total automotive component exports from South Africa, followed by engine parts, tyres and engines as the biggest categories.

In total, the yearly South African component exports at risk amount to R66-billion, says Moothilal.

In terms of job opportunities, around 17 500 jobs are under threat within the South African components sector, he notes. This excludes employment related to engines, as this is done in-house by two vehicle manufacturers.

The risk to component makers in terms of the EV evolution is divided into three categories.

High risk is where a company’s core business is to become obsolete; medium risk is where the core business will become obsolete, but there are opportunities to pivot within the operation; and low risk, where the company has a diversified product portfolio, with only one portfolio to become obsolete.

“However, it is important to note that the impacts of the phasing out of internal combustion engines (ICEs) are unlikely to be linear and immediate,” emphasises Moothilal.

The global phasing out of ICE vehicles in the short and medium term will not completely eliminate hybrid and plug-in hybrids, both of which require many similar components as ICEs, he notes.

“People often ask if SA is ready for NEVs – what does it mean for component manufacturers? Are we going to fall off a cliff?

“Actually not. Component manufacturers in South Africa have typically responded to technology changes every time there is a new model or a facelift is to be produced,” says Moothilal.

“We already have companies in South Africa exporting into global EV platforms, such as the F150 Lightning platform in the US. That should tell you that EV technology has already found its way into the South African component space.”

The exporter to the US is a locally owned foundry and forge business exporting wheel hubs.

Another manufacturer moving into the EV space is a producer of processed raw materials which has a large export contract with a vehicle manufacturer for the supply of components into their EV range.

A third example is a fuel-cell and electrolyser component manufacturing facility that is currently being established to produce membrane electrode assemblies containing platinum-group metals.

Moothilal says it is also important to remember that a large cohort of Naacam members are multinational companies whose sister plants across the world are already producing components for new-energy vehicles (NEVs – hybrids and EVs included).

This means that they have NEV-specific research and development that can be readily shared with their local subsidiaries as and when required.

When Naacam members were asked in a recent survey what they believe to be the most important enabling factors to transition to component production for NEVs, they ranked technology incentives and capital incentives from government, as well as demand certainty from vehicle manufacturers as the two most important criteria.

* Moothilal spoke at an EV conference held in Cape Town last week. Source: Engineering News

PrevPreviousNAACAM Golf Day 2023

Search

Recent News

NAACAM Golf Day 2023

Loadshedding is hurting the global competitiveness of SA’s auto sector, warns NAACAM

Global M&A Trends in Industrial Manufacturing and Automotive Sectors: 2023 Outlook

NAACAM Announces Partnership With Messe Frankfurt South Africa

NAACAM SHOW 2023, in Partnership with the Tshwane Economic Development Agency (TEDA)

Wake Up Call For South Africa’s Vehicle Sector

  • Overview
  • National Executive Committee
  • Regional Committees
  • Presidents and Vice Presidents
  • Media Releases
  • Overview
  • National Executive Committee
  • Regional Committees
  • Presidents and Vice Presidents
  • Media Releases

Members

  • Services for Members
  • International Trade
  • Industry Contacts
  • Selected Industry Contacts
  • Consider NAACAM Membership
  • Services for Members
  • International Trade
  • Industry Contacts
  • Selected Industry Contacts
  • Consider NAACAM Membership

Useful Links

  • NAAMSA
  • SATMC
  • BMA-Intelligent-Systems
  • SA New Vehicle Sales
  • Durban Automotive Cluster
  • ASCCI
  • NAAMSA
  • SATMC
  • BMA-Intelligent-Systems
  • SA New Vehicle Sales
  • Durban Automotive Cluster
  • ASCCI

General

  • Contact Us
  • General Queries
  • Membership Queries
  • Advertise on this Page
  • Terms of Use
  • Privacy Statement
  • Contact Us
  • General Queries
  • Membership Queries
  • Advertise on this Page
  • Terms of Use
  • Privacy Statement
COPYRIGHT © NAACAM 2023. ALL RIGHTS RESERVED.
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT