Why SA’s automotive sector needs more than local content targets to succeed
Department of trade and industry's automotive policy will need a thriving business environment as well to succeed, says Toyota CEO Andrew Kirby
Success in meeting new local content targets in SA-made cars and bakkies depends less on the willingness of motor companies and their suppliers to co-operate than on the environment in which they would do business, Toyota CEO Andrew Kirby said on Friday. Kirby was speaking after trade and industry minister Rob Davies announced details of the next stage of government-led automotive policy. The existing Automotive Production and Development Programme (APDP), which runs until 2020, will be extended to 2035. Many current features will remain but the extended programme will make tough demands on companies’ ability to increase local content and grow black participation in the industry. Davies wants average industry local content — which includes labour and manufacturing costs, as well as the value of SA-made components — to rise from 38% to at least 60%. But targeting alone won’t make it happen. Increased local content will become viable only if vehicle production also rises. Current annu...
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