Study expected to shake up South African Automotive sector

01 Feb 2016 | Admin Author

The Automotive Industry Development Centre in the Eastern Cape has announced plans to initiate a study, that it says, is expected to shake up the South African Automotive sector.

AIDC spokesperson, Lance Schultz, says the study seeks to determine the stumbling blocks to the growth of local content in vehicles produced in South Africa.

He says in some models local content is as low as 30%, with growing job losses in the industry adding insult to injury.

Schultz says the study will survey suppliers and stakeholders within the automotive manufacturing hub of the Eastern Cape.

"The study really is going to be aimed and geared at trying to understand what are the impediments for growth in the suppliers to also have a look at whether the government instruments that are put in place at the moment, if they are efficient to ensure that we can create both investment and new jobs and to try and have a look at to where original equipment manufacturers and suppliers can work together in a more harmonious way to make sure there is integration" he said