The South African Automotive Masterplan (SAAM) 2035 is under review because at this rate, it will highly unlikely achieve its target to grow local manufacturing content to 60%.
The National Association of Automotive Component and Allied Manufacturers (NAACAM) says the government must compel international automotive manufacturers to increase local content in South African-built vehicles to 60%.
The South African Automotive Masterplan (SAAM) 2035 is currently under review because, at this rate, it will highly unlikely achieve its target to grow local manufacturing content to 60%, creating 224 000 jobs.
NAACAM CEO Renai Moothilal, in an interview with MISA (Motor Industry Staff Association) spokesperson Phakamile Hlubi-Majola, said he believes localisation is the most powerful lever for growing the domestic economy, creating jobs, and developing local skills because component manufacturing carries the deepest employment in the automotive value chain.
Moothilal pointed to Brazil, Thailand, and Turkey, where governments set binding terms for original equipment manufacturers (OEMs). In those markets, meeting state-set localisation requirements is not optional, but a condition to being allowed to sell vehicles there.
