Cabinet announced on Thursday that it had approved the extension of the Automotive Production and Development Programme (APDP) from 2021 to 2035.
The government support programme for the domestic vehicle manufacturing industry was originally scheduled to come to an end in 2020.
Cabinet said it had approved the extension of the APDP "with amendments to support the South African Automotive Masterplan (SAAM)".
SAAM is the newly developed strategic plan for the long-term development of the South African automotive industry, and the APDP will now operate within the framework of this masterplan.
SAAM focuses on six areas, namely local market optimisation; regional market development; localisation; infrastructure development; industry transformation and technology and associated skills development.
“The amendments seek, amongst others, to encourage higher levels of local value addition to create more opportunities for additional employment,” noted Cabinet.
Cabinet said Minister of Trade and Industry Dr Rob Davies would brief the media on the amendments on Friday.
National Association of Automobile Manufacturers of South Africa director Nico Vermeulen welcomed the extension of the APDP.
“We will be studying the details of the post-2021 programme and will comment in due course on its provisions.
“Importantly, government’s announcement will enable the industry to plan for the future and to invest with confidence.”