NEWS

Automotive sector to prioritise local, specialised component manufacturing

<p class="intro upper-first" style="font-family:;white-space:normal;word-spacing:0px;text-transform:none;color:;padding-bottom:1.5em;padding-top:0px;padding-left:0px;orphans:2;widows:2;margin:0px;letter-spacing:0px;padding-right:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-style:initial;text-decoration-color:initial;"> Vehicle manufacturer <a class="topiclink" style="text-decoration:;border-bottom:#000000 1px dashed;color:;" href="http://www.engineeringnews.co.za/topic/toyota-south-africa">Toyota South Africa</a>(Toyota SA) on Tuesday pointed to localisation and <a class="topiclink" style="text-decoration:;border-bottom:#000000 1px dashed;color:;" href="http://www.engineeringnews.co.za/topic/specialised-component-manufacturing">specialised component manufacturing</a> as the top priorities in the five-year <a class="topiclink always-topic" style="text-decoration:;border-bottom:#03b8de 1px dashed;color:;" href="http://www.engineeringnews.co.za/topic/automotive">Automotive</a> Sector <a class="topiclink always-topic" style="text-decoration:;border-bottom:#03b8de 1px dashed;color:;" href="http://www.engineeringnews.co.za/topic/business">Business</a> Plan. <p style="font-family:;white-space:normal;word-spacing:0px;text-transform:none;color:;padding-bottom:1.5em;padding-top:0px;padding-left:0px;orphans:2;widows:2;margin:0px;letter-spacing:0px;padding-right:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-style:initial;text-decoration-color:initial;"> Toyota SA president and CEO <a class="topiclink" style="text-decoration:;border-bottom:#000000 1px dashed;color:;" href="http://www.engineeringnews.co.za/topic/andrew-kirby">Andrew Kirby</a> presented the plan on behalf of the <a class="topiclink always-topic" style="text-decoration:;border-bottom:#03b8de 1px dashed;color:;" href="http://www.engineeringnews.co.za/topic/automotive">automotive</a> sector at the <a class="topiclink always-topic" style="text-decoration:;border-bottom:#03b8de 1px dashed;color:;" href="http://www.engineeringnews.co.za/topic/business">Business</a> Unity <a class="topiclink" style="text-decoration:;border-bottom:#000000 1px dashed;color:;" href="http://www.engineeringnews.co.za/topic/south-africa">South Africa</a> <p style="font-family:;white-space:normal;word-spacing:0px;text-transform:none;color:;padding-bottom:1.5em;padding-top:0px;padding-left:0px;orphans:2;widows:2;margin:0px;letter-spacing:0px;padding-right:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-style:initial;text-decoration-color:initial;">   <p style="font-family:;white-space:normal;word-spacing:0px;text-transform:none;color:;padding-bottom:1.5em;padding-top:0px;padding-left:0px;orphans:2;widows:2;margin:0px;letter-spacing:0px;padding-right:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-style:initial;text-decoration-color:initial;" align="center"> <img alt="" src="http://www.bearing.com.cn/membcentre/editor/attached/image/20190130/20190130123159_25702.png" /> <p style="font-family:;white-space:normal;word-spacing:0px;text-transform:none;color:;padding-bottom:1.5em;padding-top:0px;padding-left:0px;orphans:2;widows:2;margin:0px;letter-spacing:0px;padding-right:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-style:initial;text-decoration-color:initial;">   <p style="font-family:;white-space:normal;word-spacing:0px;text-transform:none;color:;padding-bottom:1.5em;padding-top:0px;padding-left:0px;orphans:2;widows:2;margin:0px;letter-spacing:0px;padding-right:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-style:initial;text-decoration-color:initial;"> From a component point of view, catalytic converters and engine parts are most often exported, Kirby said, and, therefore, the <a class="topiclink always-topic" style="text-decoration:;border-bottom:#03b8de 1px dashed;color:;" href="http://www.engineeringnews.co.za/topic/automotive">automotive</a> sector <a class="topiclink always-topic" style="text-decoration:;border-bottom:#03b8de 1px dashed;color:;" href="http://www.engineeringnews.co.za/topic/business">business</a> plan will focus on improving local capability to manufacture specialised <a class="topiclink always-topic" style="text-decoration:;border-bottom:#03b8de 1px dashed;color:;" href="http://www.engineeringnews.co.za/topic/components">components</a>. <p style="font-family:;white-space:normal;word-spacing:0px;text-transform:none;color:;padding-bottom:1.5em;padding-top:0px;padding-left:0px;orphans:2;widows:2;margin:0px;letter-spacing:0px;padding-right:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-style:initial;text-decoration-color:initial;"> “The South African vehicle market has been sluggish, with no stellar growth predicted for the future and, therefore, [component] imports have dominated the market. <p style="font-family:;white-space:normal;word-spacing:0px;text-transform:none;color:;padding-bottom:1.5em;padding-top:0px;padding-left:0px;orphans:2;widows:2;margin:0px;letter-spacing:0px;padding-right:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-style:initial;text-decoration-color:initial;"> “Local <a class="topiclink always-topic" style="text-decoration:;border-bottom:#03b8de 1px dashed;color:;" href="http://www.engineeringnews.co.za/topic/manufacturing">manufacturing</a> is a challenge, with a high tax burden on vehicles, at 42%.” <p style="font-family:;white-space:normal;word-spacing:0px;text-transform:none;color:;padding-bottom:1.5em;padding-top:0px;padding-left:0px;orphans:2;widows:2;margin:0px;letter-spacing:0px;padding-right:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-style:initial;text-decoration-color:initial;"> However, Kirby added that there was tremendous scope for growth, with a market gap to provide affordable <a class="topiclink always-topic" style="text-decoration:;border-bottom:#03b8de 1px dashed;color:;" href="http://www.engineeringnews.co.za/topic/components">components</a> locally. Toyota SA, together with other <a class="topiclink always-topic" style="text-decoration:;border-bottom:#03b8de 1px dashed;color:;" href="http://www.engineeringnews.co.za/topic/automotive">automotive</a> industry players and the Department of Trade and Industry (DTI) have established the <a class="topiclink always-topic" style="text-decoration:;border-bottom:#03b8de 1px dashed;color:;" href="http://www.engineeringnews.co.za/topic/automotive">Automotive</a> Production and Development Programme Trade Related Investment Measures programme, which provides rebates on duties. <p style="font-family:;white-space:normal;word-spacing:0px;text-transform:none;color:;padding-bottom:1.5em;padding-top:0px;padding-left:0px;orphans:2;widows:2;margin:0px;letter-spacing:0px;padding-right:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-style:initial;text-decoration-color:initial;"> Other targets in the <a class="topiclink always-topic" style="text-decoration:;border-bottom:#03b8de 1px dashed;color:;" href="http://www.engineeringnews.co.za/topic/business">business</a> plan, and contained within the South African <a class="topiclink always-topic" style="text-decoration:;border-bottom:#03b8de 1px dashed;color:;" href="http://www.engineeringnews.co.za/topic/automotive">Automotive</a> Masterplan 2035 Vision, include ensuring more 50%-black-owned enterprises in the Tier 1, 2 and 3 component industries and strengthened auto trade relations with African countries, since it is still an untapped market, according to Kirby. <p style="font-family:;white-space:normal;word-spacing:0px;text-transform:none;color:;padding-bottom:1.5em;padding-top:0px;padding-left:0px;orphans:2;widows:2;margin:0px;letter-spacing:0px;padding-right:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-style:initial;text-decoration-color:initial;"> Moreover, Toyota SA, the DTI and other industry players have formed a Transformation Fund to grow local content, which is how jobs will be created and local purchase opportunities encouraged. <p style="font-family:;white-space:normal;word-spacing:0px;text-transform:none;color:;padding-bottom:1.5em;padding-top:0px;padding-left:0px;orphans:2;widows:2;margin:0px;letter-spacing:0px;padding-right:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-style:initial;text-decoration-color:initial;"> The vehicle manufacturer and government are also working towards bringing the informal auto parts sector into the fold. <p style="font-family:;white-space:normal;word-spacing:0px;text-transform:none;color:;padding-bottom:1.5em;padding-top:0px;padding-left:0px;orphans:2;widows:2;margin:0px;letter-spacing:0px;padding-right:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-style:initial;text-decoration-color:initial;"> “We need to focus on advanced <a class="topiclink always-topic" style="text-decoration:;border-bottom:#03b8de 1px dashed;color:;" href="http://www.engineeringnews.co.za/topic/manufacturing">manufacturing</a>. The Fourth <a class="topiclink always-topic" style="text-decoration:;border-bottom:#03b8de 1px dashed;color:;" href="http://www.engineeringnews.co.za/topic/industrial">Industrial</a> Revolution impacts on the motor industry and requires continuous investments from original-<a class="topiclink always-topic" style="text-decoration:;border-bottom:#03b8de 1px dashed;color:;" href="http://www.engineeringnews.co.za/topic/equipment">equipment</a> manufacturers. <p style="font-family:;white-space:normal;word-spacing:0px;text-transform:none;color:;padding-bottom:1.5em;padding-top:0px;padding-left:0px;orphans:2;widows:2;margin:0px;letter-spacing:0px;padding-right:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-style:initial;text-decoration-color:initial;"> “In the next five years, we will work towards stimulating local demand and domestic vehicle affordability, as well as improved <a class="topiclink always-topic" style="text-decoration:;border-bottom:#03b8de 1px dashed;color:;" href="http://www.engineeringnews.co.za/topic/industrial">industrial</a> relations legislation and we will take a stronger approach to skills development in our supply chain,” said Kirby.

30 Jan,2019