saaw update
Playing a Vital Role
South Africa’s automotive industry, whilst small in global terms, remains an important manufacturing sector; an
increasingly diminishing economic activity in South Africa; contributing at least 6% to the country’s GDP, and
accounting for some 12% of South Africa’s manufacturing exports.
I
t all began in the
1960’s, when the
government of
the day decided that
South Africa needed
to develop its own
automotive industry.
Whilst based more on
ideological rather than
economic imperatives,
this decision led to
an industry that today
is an engine for the
manufacture and
export of vehicles and
components. An added
positive is that most of
the major multinational
OEMs use South Africa
to source components
and assemble vehicles
for the local and
international markets.
Global overcapacity,
technological advances,
a move to modular
production and
massive changes in
the requirements and
demands being placed
on the automotive
component industry
means that the industry
needs all the support
that it can get. One of
the drivers of investment
is trade promotion
initiatives such as the
South African Automotive
Week (SAAW), which has
traditionally been held
in the Eastern Cape,
but which moves to
➲ The manufacturers made use of SAAW 2102 to display their vehicles
Gauteng in 2014, with the
support of the Automotive
Industry Development Centre (AIDC), the
The aim of the APDP is to stimulate the
Department of Trade and Industry (the dti),
expansion of local production to 1,2 million
With approximately 30 000 people employed
and the automotive industry. They will be
vehicles a year by 2020, while significantly
directly in automotive manufacturing, and
partnering with Inkanyezi Event Organisers
increasing local content at the same time.
about 65 000 employed in the component
in holding this prestigious event.
manufacturing industry, the industry is
Whilst not perfect, and sometimes inherently
a significant employer in a country that
inappropriate, the local content programmes SAAW 2014 will take place on the 13-17th
suffers high unemployment levels. Add the
October 2014 at the Gallagher Convention
have at least laid the foundation for growth.
over 200 000 that are employed in retail
Centre in Midrand, and as it is the African
The automotive and components industry
and aftermarket activities, and the roughly
continent’s showcase for manufacturers of
is well placed for investment opportunities,
6 000 people employed in the tyre
vehicle components and electric vehicles,
and vehicle manufacturers such as Toyota,
manufacturing industry, and you start to
over 400 exhibitors are expected to pack
Volkswagen, Ford, General Motors,
get the picture of the vital role that the
into Gallagher, with a significant international
Mercedes Benz, BMW, Nissan and Renault
automotive industry plays in the economic
presence complementing the local offerings.
have production plants in South Africa, all
well-being of our country.
supported by a comprehensive but fragile
SAAW has an impressive record for global
component manufacturing base.
All this has not gone unnoticed by the
market access, stimulating deals and
economic planners, and subsequent
agreements between buyers and sellers and
Geographically, the footprint of the
interventions created the Motor Industry
for new enterprise creation. For industry old
component manufacturing covers three
Development Programme (MIDP) in 1995
timers and newcomers alike, SAAW 2014
provinces - the Eastern Cape (coastal) and
and its successor the Automotive Production Gauteng (inland) are the dominant players,
will be the place to be, either as an exhibitor
and Development Programme (APDP) in
whilst Kwa-Zulu Natal is the third province in or visitor, because this is where it will all
2013.
happen for five deal making days.
the mix.
TRAD R4