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The National Association of Automobile Manufacturers South Africa (NAAMSA), Tuesday, expressed optimism at the extension of the Automotive Production Developmental Policy Regime (APDP) from 2021 through the end of 2035, saying it welcomes the extension as announced by the Minister of Trade and Industry, Dr. R Davies, at the end of November, 2018.
Expressing the optimism in its industry projections for 2019, the Association said, “Despite the fact that the 2035 objectives of the programme are quite ambitious, the announcement should enable vehicle manufacturers and component suppliers to plan strategically for the future and to finalise investment decisions with confidence and certainty.”
According to NAAMSA, “At the commencement of the extended programme from 2021 onwards, the levels of support and incentives for vehicle manufacturers will reduce significantly and the only means for vehicle producers to recoup benefits will be through progressive and substantial increases in localisation – whilst remaining internationally competitive in terms of exports.
“Vehicle producers and suppliers will have to continue to work together to achieve sustained net cost reductions to ensure that the industry becomes more competitive internationally, to grow vehicle and components export business and to provide affordable products to the local market. “
The Association maintained that its members remain determined to rise to the challenges of the post-2020 programme which will involve incremental localisation, industrialisation and transformation throughout the automotive value chain.
