{"id":14238,"date":"2024-10-17T13:54:00","date_gmt":"2024-10-17T09:54:00","guid":{"rendered":"https:\/\/gbc1.net\/?p=14238"},"modified":"2024-11-23T15:11:55","modified_gmt":"2024-11-23T11:11:55","slug":"south-africa-ambitions-to-drive-auto-exports-to-zar-400b-by-2035","status":"publish","type":"post","link":"https:\/\/gbc1.net\/index.php\/2024\/10\/17\/south-africa-ambitions-to-drive-auto-exports-to-zar-400b-by-2035\/","title":{"rendered":"South Africa Ambitions to Drive Auto Exports to ZAR 400B by 2035"},"content":{"rendered":"\n

At the opening of the South Africa Auto Week (#SAAW2024<\/a>), the eyes were set on the keynote speech of President Cyril Ramaphosa. The Auto Week is taking place at the Cape Town International Convention Center (CTICC) from 15 to 18 October 2024, and to mark the centenary of car manufacturing in South Africa, the theme of the event is “Reimagining the Future, Together: Celebrating 100 Years of Automotive Heritage, Passion, Resilience, and Ingenuity.”<\/p>\n\n\n\n

According to the South African Automotive Masterplan (#SAAM2035<\/a>), the country exported more than 600,000 vehicles in 2023 and aims to drive auto exports to ZAR 400 billion by 2035. As part of the master plan, South Africa will jack up local value addition (#LVA<\/a>) in auto manufacturing to 60%. In order to achieve this target, South Africa also plans to enhance logistics and transport infrastructure in support of the growth of the auto industry and to maintain its competitive edge.<\/p>\n\n\n\n

\n

“Government has played a pivotal role in fostering a favourable policy and regulatory environment that has supported growth, transformation, and innovation within the automotive industry.”<\/p>\nSouth Africa President Cyril Ramaphosa<\/cite><\/blockquote>\n\n\n\n

However, several challenges remain. Firstly, one of the key markets, the USA is highly dependent on preferential access based on #AGOA<\/a>. Some uncertainty lingers as the current expires and South Africa risks losing its status as its economy improves.<\/p>\n\n\n\n

Up to two thirds of vehicles produced in South Africa are exported. The main export markets are Germany, USA, Japan, Australia and Taiwan. At the same time, South Africa imported nearly USD 5 billion in vehicles mainly from India, Germany, China, Japan and Spain. The auto sector represents 5.3% of the GDP of South Africa and is one of the major employers in the country with nearly 120,000 direct and indirect jobs.<\/p>\n\n\n\n

Similarly, Morocco has put forward favorable policies to attract #FDI<\/a> into its auto industry. Its close location to the strategic EU market has made it a attractive destination for car makers exporting to that market.<\/p>\n\n\n\n

\n