Auto components sector pledges R4.8bn investment

Auto components sector pledges R4.8bn investment

September 5, 2023

A R4.8-billion investment pledge was announced by National Association of Automotive Component and Allied Manufacturers (Naacam) CEO Renai Moothilal on the final day of the Naacam Show 23, hosted in partnership with the Tshwane Economic Development Agency, in the City of Tshwane, from August 30-31.

Moothilal confirmed that the pledge was consolidated from a group of sixteen exhibitors at the event, and reflected committed investments to be implemented between now and the end of 2024. This group, coming from different regions and segments of component manufacturing, was a mix of large multinational and domestic component manufacturers as well as emerging black industrialists.

Minister of Trade, Industry and Competition, Ebrahim Patel, a keynote speaker at the show, said generation of revenue for essential public services depended on investment – a commercial decision driven by an expectation of a return. He added that the importance of component manufacturing had traditionally been underplayed, with the attention often being on the large assembly original equipment manufacturers, and that the component sector’s contribution to SA’s economy was one of the most fundamental arguments for the incentives that South Africa offered the automotive industry.

Other parts of the event explored a multitude of industry-pertinent issues, ranging from how the transition to new energy vehicle production could impact component producers, to how carbon regulations and the current energy challenges could be addressed in plants across the country. Portia Derby, Transnet group CEO, spoke on how Transnet was looking to improve its offering to the domestic component manufacturers under the wider context of how logistics and infrastructure would be a source of future competitiveness for automotive manufacturing in South Africa.

Enhancing inclusivity through women and youth participation in the automotive sector was the theme of a dedicated ‘Women in Autos’ roundtable. Developed in partnership with the Automotive Industry Transformation Fund and the Women Economic Assembly, this session explored challenges impeding the increased participation of youth and women in the sector and reiterated the significant commitment and efforts needed to address these.

The two-day show attracted more than 1 300 visitors and 130 exhibitors from established manufacturers and service providers in the automotive components sector, and emerging SMMEs. The next iteration of the Naacam Show will be held in 2025.

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