#WeAreNAACAM:. This morning’s Financial Mail commentary highlighted industry concerns around policy delays and declining production, localisation and employment. The industry is currently falling well short of Automotive Masterplan targets set in 2018, including doubling vehicle production to 1.4 million units, increasing employment to 240 000 jobs, and raising average local content in South Africa–made vehicles to 60%.
Industry leaders emphasised the importance of proactive steps to put the sector back on track, deepen localisation, stabilise production and safeguard jobs, all critical to securing the sector’s long-term sustainability and competitiveness.
As noted by NAACAM CEO Renai Moothilal, the auto sector is the largest manufacturing sector in South Africa, it is therefore important for SA’s industrialisation that the competitiveness of the sector is supported. Renai indicated that this is possible through several policy adjustments including, measures to strengthen the domestic market, prioritise localisation, deal with the excess duty-credit situation, close tariff loopholes and designate locally manufactured vehicles and replacement parts.
As a cost-effective way to attract new investment and grow production, the IDC has been advocating for shared assembly plants. NAACAM supports this idea “provided it is structured as a CKD assembly operation with sufficient volumes to achieve economies of scale and is supported by clear, credible localisation strategy”.
Full article on PDF courtesy of Financial Mail. https://www.financialmail.businessday.co.za/features/2026-01-22-south-africas-vehicle-policy-is-badly-in-need-of-a-service/