Johannesburg – The National Association of Automotive Component and Allied Manufacturers (NAACAM) says Government must compel international automotive manufacturers to increase local content in South African-built vehicles to 60%.
The South African Automotive Masterplan (SAAM) 2035 is currently under review because, at this rate, it is highly unlikely to achieve its target to grow local manufacturing content to 60%, and its job creation target of 224 000 jobs.
In a MISATV interview, Renai Moothilal, Chief Executive Officer of NAACAM, said he believes localisation is the most powerful lever for growing the domestic economy, creating jobs and developing local skills, because component manufacturing carries the deepest employment in the automotive value chain.
During the MISATV interview conducted by MISA Spokesperson Phakamile Hlubi-Majola, NAACAM CEO Moothilal pointed to Brazil, Thailand and Turkey as examples where governments set binding terms for original equipment manufacturers (OEMs).
In those markets, meeting state-set localisation requirements is not optional, but a condition to being allowed to sell vehicles there.
“We should not be apologetic about it… Localisation is effectively ensuring that you get significant value added from the OEMs,” Moothilal stated.
“The localisation global norm is 60%.
“In South Africa we have been stuck at 40%, and we deserve more.
“OEMs in South Africa get a lot of support from the state and working class.
‘’We feel we should be militant.
“60% is a target in the Masterplan.”
Moothilal said the target only exists on paper and lacks political will to ensure that it is achieved.
MISA, the majority trade union in the retail motor industry, representing 79 000 members, supports NAACAM’s view.
Creating sustainable decent jobs is at the heart of the Masterplan.
“With OEM’s producing locally receiving substantial incentives from Government, it is not unreasonable to ask they commit to creating real manufacturing jobs,” said Martlé Keyter, MISA’s Chief Executive Officer: Operations.
MISATv will continue to give a platform to the leaders shaping the future of the motor industry.
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