Trade and industry minister Rob Davies. Picture: BUSINESS DAY
A revised automotive development strategy, coming into force in January 2021, will require motor companies to increase the value of local content in SA-made vehicles to at least 60%. The current average sits below 40%. Companies will also have to drastically grow the number of black-owned companies supplying components and sub-components.
However, Hill said that to succeed, the APDP must be part of a broad economic restructuring. Higher production volumes have to be economically viable. Increases in local content can be no more than incremental as long as the motor industry is forced to rely on overseas beneficiation of raw materials produced in SA. The country is a rich source of iron ore and platinum but the motor industry is forced to import finished products.
It would also help if SA had a reliable electricity supplier. Assembly plants all have emergency power available, but even a second’s loss of power can cause production to be suspended for up to two hours while assembly-line robots are reconfigured.
41% of car costs are tax and this bollucks is the stuff they say needs to change . Consumer is first in their plans obviously .
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