South African vehicle components manufacturers are making significant gains in quality, productivity and cost competitiveness but still struggling to close the gap on emerging-market competitors, according to a report published on Tuesday. It finds that while there are plenty of domestic reasons for the components supply industry to be bullish — employment is rising, sales revenue is up in real terms, and vehicle manufacturers plan to increase orders — improving global competitiveness is often matched by that of other countries’ industries. The South African Automotive Supplier Industry Benchmark Report, by B&M Analysts, compares SA directly with other up-and-coming industries in India, Mexico and Hungary. More than 60% of the value of parts built into SA-produced vehicles is imported. Suppliers say the low volumes they are called on to produce — SA accounts for less than 1% of global vehicle production — make it impossible for them to be cost-competitive with overseas suppliers tha...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now