Whether President Cyril Ramaphosa and his advisers extend the Covid-19 national lockdown beyond April 30, one hopes they read a briefing document prepared by professor Justin Barnes, the government’s chief go-to independent adviser on motor industry policy.
Today, the industry is the poster-child for the government’s re-industrialisation policy. Vehicle and components companies account for almost 30% of the value of SA manufacturing production and more than 14% of exports. In 2018, the industry exported R178.8bn of goods. About 64% of vehicles made in SA find foreign customers.
The updated APDP is part of a broader SA automotive master plan whose goals are to double motor industry employment and production by 2035 and create a black-owned industrial sector that will increase local content in SA-made vehicles by 50%.But all these goals — and promises — were set before Covid-19 arrived. Barnes says that the longer the national lockdown goes on, the more unachievable they will become.
This is not good news for local content. Motor companies must keep this above a certain level not only to win APDP incentives but also to qualify for duty-free vehicle exports.
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