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Ipeleng Mabusela, CEO strategy and corporate support for the Retail Motor Industry Organisation (RMI), the leading voice in the automotive aftermarket sector with more than 170,000 employees employed through its eight associations, has warmly congratulated the newly-appointed cabinet of ministers and deputy ministers, specifically those in the Departments of Transport, Employment and Labour, Education, Trade, Industry and Competition and Finance.
The automotive sector is a cornerstone of South Africa’s industrial landscape with the retail and aftermarket contributing 2% to GDP and providing over 300 000 stable jobs – 170 000 of these are RMI employees in its eight associations. Mabusela says RMI is open to collaborating more closely with government to ensure the continued growth and sustainability of the automotive aftermarket sector.
Mabusela stressed that in the automotive aftermarket sector specifically, growth is definitely expected from the small to medium businesses that are going to drive the economy.
“We are, however, sitting with a skills crisis of technicians across the automotive sector. As an industry, together with the Department of Employment and Labour and Higher Education and Training, we have to address the automotive skills shortages, reduce unemployment and be part of real transformation.
”If the country wants to address the current skills crisis we need to strengthen and build more TVET Colleges and shift focus towards more vocational and technical education. Vocational skills form the backbone of any economy and can be a valuable stepping stone to advanced careers in the future. The RMI fully support any efforts by government to tackle youth unemployment in the long term by prioritising education and the skills deficit that exists,” he says.
Mabusela noted that the RMI also welcomes the opportunity to work more closely with the Department of Transport to address possible legislation on two issues currently negatively impacting road safety namely periodic testing and mandatory reclassification of accident vehicles.
“Legislative change focusing on the periodic testing of vehicles to promote roadworthiness and safety, as is done in the United Kingdom, remains a viable and important proposition. We believe that the implementation of Periodic Vehicle Testing and Inspection (PTI) will yield great benefits to the country in terms of reducing road deaths, creating jobs and stimulating the retail sector with the maintenance of vehicles in a safe and roadworthy condition.
”Ten years after the legislation for more regular vehicle inspections was promulgated by the Transport ministry, the RMI is still strongly in support and believe there is now an opportunity to revive and implement these key changes,” says Mabusela.
Should the legislation be implemented, it would enforce that vehicles 10-years and older be tested every two years.
The other factor requiring urgent attention from government is the lack of a transparent Vehicle Salvage Database (VSD) to check a vehicle’s history so as to assess, for example, whether it may have been involved in a serious accident. The RMI has been lobbying with the South African Insurance Association (SAIA) on the matter for a number of years now without success.
“We believe the issue is so critical it is time to look to the Transport Ministry to implement mandatory legislation for the reclassification of vehicles which have been involved in an accident and deemed uneconomical to repair. We are delighted Government have previously expressed a commitment to getting involved.
”Regulation is definitely first prize, where the Code status of a vehicle is defined in law (including a specific economic write-off code) and insurers and other entities with knowledge of crash and write-off data are required to submit such data to a central repository,” says Mabusela.
The RMI is committed to supporting Trade Industry and Competition (DTIC), the National Regulator for Compulsory Specifications (NRCS) and Mineral Resources and Petroleum in tackling any form of illicit trading in automotive parts or harmful practices such as fuel adulteration.
“We will continue to engage with the relevant departments. The trade in illegal parts has far-reaching implications for South Africa, affecting both consumer safety and the economic landscape. The establishment of an Industry Compliance Forum, in collaboration with regulatory bodies and stakeholders, presents a strategic opportunity to address this challenge and contribute to the country’s overall growth,” he says.
“As a significant contributor to the South African economy, the RMI and its eight member associations is looking forward to an ongoing and strengthened collaborative partnership with government to ensure a thriving automotive sector that fuels economic growth, promotes road safety, and fosters a positive motoring experience for millions of South Africans.
”Ultimately, greater collaboration will ensure a future where a robust automotive industry propels South Africa’s economic engine, while prioritising the safety and well-being of every citizen behind the wheel,” concludes Mabusela.
