The auto industry is so complex that a regional automotive pact is required before it can succeed in Africa, says former politician and now consultant, Alec Erwin.
Erwin told the National Association of Automotive Component and Allied Manufacturers of South Africa show in Durban on Thursday that worldwide, with few exceptions, successful auto industries had emerged to turn on regional axes. Mlumbi-Peter noted that only 1.2 million cars were sold in Africa despite a population of over one billion.Mlumbi-Peter, Erwin and others at the show spoke about how the South African auto industry needed to expand exports to the continent to capitalise on the market’s potential and as a way to increase volumes. This, they said, would bring economies of scale and sustain the high levels of localisation that were now being targeted in South Africa.
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