“With the NAACAM Show incorporating the Durban Automotive Cluster’s National Localisation Indaba now underway I am very pleased with the investment by eThekwini Municipality to attract and host the national automotive production industry to Durban” says Shunnon Tulsiram, Head of Economic Development and Investment Promotion of eThekwini Municipality.
“The significance of the sector to the national economy was evident in the addresses given by National Minister Rob Davies, three Original Equipment Manufacturers (OEMs); Toyota, Volkswagen and Mercedes Benz and many other suppliers to the OEMs, academics, consultants, labour and government leaders.”
Minister Rob Davies delivered a keynote address after touring the exhibition hall. ”I was very pleased to see among them a number of black industrialists some of whom had started to enter this space as a result of the initiatives of the OEMs. This is important because auto programmes will have to deliver a quid pro quo in terms of empowerment and in fact we setting level four (of the B-BBEE codes) as the requirement for entry, also in the codes of good practice one of the elements of those that will have to be scored is that you will have to achieve a score in supplier and enterprise development so it is very pleasing to see a positive response to that in the form of actively supporting and encouraging black industrialists.”
The critical matter of raising the local content value in locally manufactured vehicles was robustly discussed by an OEM, supplier, government and labour representative. The future of the automobile in terms of both the end-product and fundamental changes to the associated production process was presented by two international thought leaders and the critical issue of industry transformation discussed over two sessions.
Councillor Zandile Gumede, eThekwini Executive Mayor was also positive about the initiative and the sector’s socio-economic contribution in her welcome address: “The automobile manufacturing sector in KZN directly employs 17 000 people and indirectly a further estimated 51 000 people. It is a sector renowned for providing good jobs and imparting significant technical skills while also providing career progression opportunities. eThekwini is also pleased to be the home to the Automotive Supplier Park and play an integral role in the planning and establishment of the crucially needed infrastructure in the City which will encourage benefits from the economies of scale in the manufacturing automotive industry through the centralization of different functions.”
Shunnon Tulsiram continues “I am pleased that two local firms had very positive case studies to share in terms of their own transformation and how they have brought previously disadvantaged people into their value chains. It’s also pleasing how many black owned suppliers are present in the exhibition. I believe 34 of the nearly 200 exhibitors are black owned.
A significant and collaborative effort between industry, eThekwini Municipality, Dube TradePort and KZN Provincial Government is fast tracking the development of the Automotive Supply Park in South Durban. At the next NAACAM Show, which we hope to attract back to Durban in 2019, we’ll be able to market the Automotive Supply Park to delegates as they’ll be able to move in from early 2020.
This infrastructure, strategically located near to Toyota and the port will significantly support the competitiveness of local firms relocating here or new Foreign Direct Investment.”
Chair of the Durban Automotive Cluster Andrew Velleman “A lot of tough issues were discussed today but there was a genuine sense of camaraderie between the OEMs, suppliers, government and labour to address the issues and to make this sector work. We produce over 600,00 vehicles but are less than 1% of global production output. Bold steps are needed to increase our share and remain relevant in the global context. Positively the key parties are broadly in agreement as to what is required to make this sector work.”