The automotive industry and the increasing growth of its value chain in South Africa, the automotive manufacturing sector has a key role to play in the growth of South Africa’s economy, reducing the country’s over reliance on foreign imports. With the sector’s key role in the economy, and country as a whole, let DTC assist with the development of your Automotive Manufacturing business plan today!
The automotive industry plays an instrumental role in South Africa’s economy. The country has capitalised on the wealth of experience brought about by the presence of all the major European, American and Japanese motor vehicle manufacturers. South Africa’s attractiveness as an investment destination of choice, and production base for products to be exported to global markets, has been well established. With its advanced infrastructure, diverse economy, sophisticated capital markets and developed manufacturing capacity, South Africa is the ideal location for any company aspiring to reach the continental market more effectively, from a cost and logistical point of view.
South Africa’s global vehicle production ranking is 22nd with a 0.58% vehicle production market share. The South African automotive industry’s growth strategies have been focused on becoming highly integrated in the international automotive environment on the back of increased foreign direct investment and trade. Under the South African Automotive Masterplan (SAAM) 2021-2035, the objective is to produce 1% of global vehicle production, or 1,4 million vehicles, per annum in South Africa by 2035, which will significantly improve the country’s status and rank in global vehicle production.
The automotive industry therefore represents an increasingly important strategic and catalytic role in the overall South African economy, impacting directly on many important economic policy goals, such as contribution to GDP, employment, skills development, economic linkages, technology, and innovation.
The South African automotive industry incorporates the manufacture, distribution, servicing, and maintenance of motor vehicles and components. Original equipment manufacturers (OEMs), official dealers, and repair specialists work closely together to provide maintenance and repair services. They cooperate to ensure warranty service, driver safety, environmental protection, spare parts availability, and information about technical improvements.
For more information & assistance with your Automotive Manufacturing business plan – Contact DTC