The future of South Africa’s automotive industry

South Africa's automotive industry has been a key driver of industrialization and economic growth in the country, contributing significantly to the national GDP and manufactured output. The sector has shown resilience and growth under challenging circumstances, thanks to the policies put in place by the previous administration. Renai Moothilal, CEO of the National Association of Automotive Component and Allied Manufacturers (NAACAM), emphasized the importance of maintaining policy continuity, particularly in the Autos Production Development Program (APDP) under the SA Autos Master Plan, Bunto 2035. This program is crucial for the long-term growth and sustainability of the automotive industry in South Africa. Moothilal acknowledged the need for a sharper focus on increasing the localization rate in the sector, aiming to raise it to 60% by 2035. While the industry has made progress, the current localization level has been stagnant at around 40%, representing missed opportunities amounting to billions of rand and potential job creation. The automotive sector is also gearing up for the transition to electric vehicles, with policies already in place to support the manufacturing and adoption of greener and more sustainable vehicles. The government's commitment to stimulating EV production through incentives and policy frameworks is vital for the industry's future success. However, there is room for improvement in broadening the EV ecosystem and enhancing consumer engagement with electric vehicles in the country. Overall, the automotive industry in South Africa is poised for growth and innovation, but continued policy support and a focus on localization are essential for achieving its full potential.