Cape Town - South Africa is likely to adopt new plans for the country’s car industry in December, which aim to increase the local content of assembled cars to 60 percent by 2035 from around 38 percent now, Trade and Industry Minister Rob Davies said on Thursday.
The new plan, which will come into effect in 2021, seeks to provide stability for one of the country’s main manufacturing sectors, where carmakers have invested billions upgrading factories to supply the export market.
The so-called auto masterplan aims to bolster competitiveness and expand vehicle production in South Africa to 1 percent of global output. It marks the latest incentive package the government is offering to component and carmakers.
Davies said the new plan would try to get more local companies involved in the making of vehicle parts.
“So that we are not just a footloose place where assembly can take place for the short term, but where there is an ecosystem that is grown in and around the auto sector,” he told Reuters in an interview.