When one has to evaluate the impact
of the new programme one year after its
implementation, the question is: Is the
programme positively contributing to the
government’s goal of producing
1,2 million vehicles locally by 2020?
The APDP was of course not only
designed as an incentive for automotive
manufacturers but also to align the South
African support programme with World Trade
Organisation (WTO) rules and guidelines.
The government’s goal of 1,2 million
vehicles can also be viewed as a wider
policy indicator and not necessarily a target.
In 2013, approximately 550,000 vehicles
were manufactured in South Africa, with
only six years left to reach the 1,2 million
target, the industry is approximately
30 to 40 percent behind the 2020 target.
Global competitiveness is the main survival
strategy for South African companies and
it would appear in the early stages of the
programme that vehicle manufacturers are
enjoying enough support to promote new
export programmes. This was illustrated in
the recent new investment announcements
by Mercedes Benz and Toyota.
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