The framework for the government support programme to replace the Automotive Production and Development Programme (APDP) in 2021 is “currently under consideration and should be announced by the end of 2017”, says National Association of Automobile Manufacturers of South Africa director Nico Vermeulen.
The new programme, often referred to as the ‘automotive masterplan’, could run until 2035, providing long-term security to the industry, which contributed 7.2% to South Africa’s gross domestic product in 2015.
Expectations are that this will grow to 7.5% in 2017.
The capital to be injected by South Africa’s major vehicle assemblers into their local operations are expected to reach R8.2-billion in 2017.
“Certainty and stability in the developmental policy framework within South Africa is essential in enabling manufacturers and everybody involved in this industry to make strategic investment decisions with a degree of certainty,” says Vermeulen.
“The APDP and its predecessor, the Motor Industry Development Programme, both contributed to the above average performance of the industry.”
South Africa makes up around 0.6% of global vehicle production.
The automotive manufacturing industry contributed 10% of South Africa’s total manufacturing output in 2014.
In 2015, around 45% of new vehicles sold in South Africa were produced locally.
Exports from the local automotive industry made up 15.6% of all of South Africa’s merchandise exports in 2015, and 13.6% of all merchandise imports.
The value of new-vehicle imports was R57.2-billion in 2014, with component imports at R74.3-billion. New-vehicle exports amounted to R70-billion in 2014, with component exports at R45.7-billion.
Total automotive trade sales reached R411.7-billion in 2015.
The industry directly employed 443 219 people in the formal and informal sectors in 2015.
The average annual wage per employee was R106 522 in 2014.
The industry contributed R55.9-billion towards the total compensation of employees during 2015.
Corporate social investment by South Africa’s seven main vehicle manufacturers amounted to R1.55-billion from 2013 to 2015.