\nVolkswagen South Africa’s (VWSA) investment of R4 billion in their assembly plant in Kariega, in the Eastern Cape, has been welcomed by Trade, Industry and Competition Minister, Ebrahim Patel.<\/p>\n
The investment will introduce a new SUV model built on the Polo platform.<\/p>\n
The move also positions the facility as the sole manufacturer of the Polo brand globally and the new SUV model will be exported to global markets.<\/p>\n
Patel addressed the public announcement on Wednesday held at VWSA’s facility in Kariega.<\/p>\n
He said the investment was a testament to the country’s industrial policy, and it will not only strengthen the assembly plant but also secure the livelihoods of approximately 3 500 people who are directly employed by VWSA.<\/p>\n
‘Moreover, this investment has rippled through this part of the Eastern Cape, fostering an ecosystem of prosperity and industrialisation, supporting an estimated 50 000 indirect jobs and livelihoods.’<\/p>\n
In the last five years, the department said government has undertaken significant work to b
\nolster automotive production in South Africa.<\/p>\n
Patel highlighted 10 actions, which have been taken in the sixth administration to support the industry:<\/p>\n
New Automotive Masterplan crafted together with the industry was implemented in July 2021, setting the policy framework for the next decade.<\/p>\n
The African Continental Free Trade Agreement (AfCFTA) has concluded modalities, including rules of origin for a first list of auto products, opening up a vast market.<\/p>\n
A free-trade agreement with the United Kingdom after Brexit was concluded and implemented, which enabled South Africa to retain access to preferential terms in the United Kingdom market.<\/p>\n
The establishment of the R6 billion Auto Industry Transformation Fund, which VWSA and other Original Equipment Manufacturers (OEMs) contribute to bringing Black component manufacturers into the supply chain.<\/p>\n
A major agreement with tier 1 auto component manufacturers has been concluded that will ensure greater opportunities for Black manufacturers in tier 2 or tier
\n3 levels.<\/p>\n
R50 billion in investment commitments in the auto sector have been secured.<\/p>\n
A landmark agreement with Stellantis for the construction of a new R3 billion plant in the Coega Special Economic Zone has been reached.<\/p>\n
Semi-knocked down (SKD) production by BAIC, also in the Coega Special Economic Zone, has commenced as a first phase toward more value-additive complete knocked down (CKD) production.<\/p>\n
A new Tshwane Automotive Special Economic Zone has been established, with 10 factories for Ford suppliers already built by March 2024, employing 3 300 workers.<\/p>\n
The Electric Vehicle Policy was finalised by the Department of Trade, Industry and Competition (dtic), and a new incentive package to assist the transition was announced by the Minister of Finance in the 2024 Budget.<\/p>\n
According to the department, the automotive industry plays a crucial role in our economy, contributing significantly to gross domestic product (GDP) and employment.<\/p>\n
The manufacturing component of the auto industry contributed 2.9
\n% of South Africa’s GDP in 2022.<\/p>\n
With over 115 000 direct employees and an additional 240 000 indirect jobs, the department said the auto industry remains a cornerstone of South Africa’s manufacturing sector.<\/p>\n
‘Despite global challenges such as the COVID-19 pandemic and supply chain disruptions, South Africa’s automotive industry has continued to grow.’<\/p>\n
Over the past five calendar years, South African OEMs produced 2.7 million vehicles and exported 1.7 million vehicles.<\/p>\n
In 2023, South Africa exported a record 399 594 vehicles, a milestone for its industrial resilience and global competitiveness.<\/p>\n
Notably, last year, South Africa exported its six millionth vehicle since the start of the democratic era.<\/p>\n
Source: South African Government News Agency<\/p>\n","protected":false},"excerpt":{"rendered":"
Volkswagen South Africa’s (VWSA) investment of R4 billion in their assembly plant in Kariega, in the Eastern Cape, has been welcomed by Trade, Industry and Competition Minister, Ebrahim Patel.<\/p>\n
The investment will introduce a new SUV model built on th…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[71],"tags":[],"_links":{"self":[{"href":"https:\/\/southafricagazette.com\/wp-json\/wp\/v2\/posts\/65035"}],"collection":[{"href":"https:\/\/southafricagazette.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/southafricagazette.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/southafricagazette.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/southafricagazette.com\/wp-json\/wp\/v2\/comments?post=65035"}],"version-history":[{"count":1,"href":"https:\/\/southafricagazette.com\/wp-json\/wp\/v2\/posts\/65035\/revisions"}],"predecessor-version":[{"id":65036,"href":"https:\/\/southafricagazette.com\/wp-json\/wp\/v2\/posts\/65035\/revisions\/65036"}],"wp:attachment":[{"href":"https:\/\/southafricagazette.com\/wp-json\/wp\/v2\/media?parent=65035"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/southafricagazette.com\/wp-json\/wp\/v2\/categories?post=65035"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/southafricagazette.com\/wp-json\/wp\/v2\/tags?post=65035"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}