Home / industry / automotive sector contributes 7.5% of South Africa’s gross domestic product

automotive sector contributes 7.5% of South Africa’s gross domestic product

Automotive industry gains insight to masterplan development at NAACAM ShowAPRIL 6, 2017 The inaugural National Association of Automotive Component and Allied Manufacturers (NAACAM) Show reflected a significant intent and strategy shift within South Africa’s automotive sector.
This responsibility falls as much with Tier 1 component manufacturers as it does with OEMs.”
NAACAM South Africa President, Dave Coffey, said the stated acceptance by industry role-players of the need to increase local content in manufactured vehicles from its current level of 38.5% to 60% was significant.
“Members of the South African automotive sector value chain, are clear that the key long term outcomes of sector growth, increased localisation and transformation are inextricably linked.
“All South African automotive role-players understand that transformation and the inclusion of black-owned suppliers in the value chain, is not negotiable.

automotive industry
referring to

Automotive industry continues to drive TPE market growth

The global market for thermoplastic elastomers (TPEs), is set to grow strongly over the next five years to 2022, with the automotive industry driving demand.
The report identifies the importance of the automotive industry in driving this growth, with growth of 5.9 per cent between 2012 – 2017 and consumption reaching 1.84 million tonnes.
If a given market is suffering, due to outside competition, this will have a knock-on effect on TPE consumption.”
It suggests by 2022, TPS will still be the most important thermoplastic elastomer, but Smithers’ research suggests this may not last for very long.
Patrick Ellis, report author, said: “The success of thermoplastics depends on their acceptance and growth within several different industries.
Automotive industry

referring to Davies also touched on the dangers of increased protectionism in markets on which the local automotive sector had focused in the past.
Because the picture.jpg and employs some 113 000 people directly, it is key to ensuring greater economic growth.
Trade and Industry Minister Dr Rob Davies has stressed that South Africa does not have the luxury to stop supporting its automotive sector, as has been the case in Australia, where the industry has disappeared.
“We need to address the continued high import penetration and we also need to have a greater alignment between local production and local demand,” he said.
Further, the Minister said localisation levels within the automotive sector are suboptimal and employment levels lacklustre, making increased localisation one of the most imperative aspects of future planning.

collected by :Catlin Logan

Check Also

picture.jpg

China’s Auto Industry Source of worry for “Honest” Trade by U.S.

China’s Auto Industry Source of worry for “Honest” Trade by U.S. while it comes to …