New auto support scheme to be presented to Cabinet in March

29th January 2018 By: Irma Venter - Creamer Media Senior Deputy Editor

New auto support scheme to be presented to Cabinet in March

The Volkswagen plant in Uitenhage

Government’s new automotive industry support scheme will be presented to Cabinet in March, says Trade and Industry Deputy Minister Bulelani Magwanishe.

However, he tells Engineering News Online that it “must not be assumed that Cabinet will endorse it immediately. Once they endorse it, we will proceed.”

The new incentive scheme, often referred to as the Automotive Masterplan, will replace the current incentive scheme, the Automotive Production and Development Programme (APDP), set to end in 2020.

Among other measures, the APDP provides manufacturers with incentives to produce larger volumes of vehicles a year, as well as for investment in capital equipment.

Magwanishe says additional details on the masterplan and associated support “will be announced in the near future, following Cabinet’s approval”.

“It is our aim as government to continue providing long-term policy certainty for investors in the automotive sector, so that we may achieve the objective of increased production volumes, improved local value addition, and achieving visible transformation across the value chain.

“The central fact is the absolute certainty that government will  continue to prioritise long-term policy certainty for investors in the automotive sector.”

Magwanishe makes it clear that there will be a strong focus on empowerment in the new programme.

“It is imperative to facilitate effective transformation across the value chain in areas such as dealerships, panel beaters, and mechanical workshops.

“While notable progress can be seen regarding compliance with empowerment legislation, I am of the view that more can still be done.”