Government close to adopting new automotive incentive package
The new plan, likely to be in place in December, will increase local content of new cars to 60%
The government is likely to adopt new plans for the country’s car industry in December that aim to increase the local content of assembled cars to 60% by 2035. Currently the local content is 38%. The new plan, which will come into effect in 2021, seeks to provide stability for one of SA’s main manufacturing sectors, where car makers have invested billions of dollars to upgrade factories to supply the export market from Africa’s biggest car-making hub. B&M Analysts, a research consultancy that worked on the new incentive plan, said increasing local content in SA-built cars to 60% could add about R135bn to the domestic auto sector. The so-called auto masterplan aims to bolster competitiveness and expand vehicle production in SA to 1% of global output. It marks the latest incentive package the government is offering to component and car makers including Ford, Toyota, BMW and Volkswagen. Trade & industry minister Rob Davies said the new plan would try to get more local companies involve...
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