This week, Business Tech reported on the recent automotive sector webinar held by FirstRand Group companies RMB, FNB and WesBank. The main topic of conversation? Localisation and the potential for growth in South Africa’s motoring industry in relation to this.
So what is ‘localisation’ and why could it benefit the South African economy and more specifically our motoring industry?
The article defines Localisation as ‘…the process whereby an increased percentage of the parts and costs of a motor vehicle is either assembled or manufactured in South Africa rather than imported’
Seen to represent a significant opportunity for the sector and a mode of facilitating the entry of BEE participants to the supply chain, localisation could see vehicle production increase from 600,000 to 1.4 million a year through The South African Automotive Master Plan [SAAM] 2021 – 2035.
Supporting BEE businesses, along with a shift in attention from traditional vehicles to motoring of the future. This includes a focus on ‘Connected’, ‘Autonomous’, ‘Shared’ and ‘Electric’ cars. (Read also, Solar Electric Cars)
Read the full Business Tech article here to find out more.
