The automotive industry was undergoing tremendous transformation and change and there were various challenges that needed to be addressed in South Africa’s automotive industry, African Innovators director Sherrie Donaldson said at the recent Manufacturing Indaba, which took place in Sandton in late June.

Speaking as part of a panel addressing the impact of the Fourth Industrial Revolution on the automotive sector, she noted that the industry faced many global challenges and that South Africa needed to find a unique, local way to deal with those challenges, especially around transformation, supply chain management and unemployment.

“A major challenge the industry is facing is competitors . . . and Industry 4.0 disruptors, such as Google [and its driverless car technology], which has become a major competitor, which was unheard of ten years ago,” she said.

Donaldson added that customer demand, ‘speed o market’ and customisation in downstream areas were also major challenges facing the sector.

“Manufacturers have to respond to these changes and they must react much faster when it comes to ‘speed o market’. They have to [expedite] their design and production techniques, fusing the combination of technology and people,” she said.

That, she noted, combined with ageing workforces, skills shortages, unskilled labour and education challenges, combined to create a unique dynamic in South Africa that needed to be properly dealt with.

Also speaking as part of the panel, National Association of Automotive Component and Allied Manufacturers operations director Dylan Jessup noted that Industry 4.0 was an important part of how the automotive sector was engaging and moving forward to maintain global competitiveness.

“We need to look at the business case around Industry 4.0,” he said.

He pointed out that the industry needed to look beyond the Automotive Production and Development Programme (APDP) and needed to engage more and collaborate with other stakeholders in South Africa’s automotive sector.

The APDP aimed to add to the benefits offered to the industry under the terms of its predecessor, the Motor Industry Development Programme.

The replacement scheme was seen as potentially more effective as it would not only benefit new-vehicle production, but would also extend and diversify the country’s vehicle components supply chain.

“Regarding the APDP, a key factor in South Africa is increased localisation. That means there will be a deepening in supply chains, which could create additional employment opportunities – which is vitally important,” Jessup said.

He added that unemployment was a huge challenge for the country and that the sector needed to present a business case that would attract investors to increase localisation in the sector.

“This can only be done if we embrace technology. It will give us a competitive edge. [Embracing] Industry 4.0 going forward is of vital importance,” he noted.