Trade & industry minister Rob Davies is due to unveil the next stage of the government’s incentive programme for the car manufacturing industry in Pretoria on Friday. The SA Automotive Masterplan will run from 2021 to 2035 and is intended to build on successes achieved by the current Automotive Production and Development Programme, which will expire at the end of 2020. While exports have grown and production-related investment has hit new peaks — nearly R10bn in 2018 alone — the government is unhappy with some features of the industry. Black participation is low and after foreign-owned motor companies refused to hand over equity to local black partners, the emphasis is now on creating a black-led components supply industry. That will go hand-in-hand with the government’s determination to increase local content in SA-made vehicles. Local content, including labour and manufacturing costs, accounts for about 38% of the ex-factory price. Davies wants this to increase to at least 60%. It...

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 helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now