To make the South Africa’s automotive sector competitive and have comparative advantage, the government needs to revamp its incentive schemes to accommodate new energy vehicles and hybrids. This was said by the Deputy Minister of Trade, Industry and Competition, Mr Zuko Godlimpi during his business engagement with stakeholders from the automotive sector, innovators and investors based at the East London Industrial Development Zone (ELIDZ) in KuGompo City, Eastern Cape.
According to Godlimpi there is a price point problem in the South African market and there is a need to restructure production to make vehicles more affordable. He said the global trend of increasing sales of the Chinese cars due to price and technology must be adopted by the local sector.
“Both government and the private sector must prioritise technological innovation in the automotive sector, and investment more in research and development to remain competitive. It is also essential for businesses to target the domestic market and exports to other African countries for growth,” he said.
Godlimpi urged businesspeople to initiate market readiness programmes and export support to target twenty-two African markets identified by the government. He emphasised the importance of driving these initiatives and having experts talk to businesses about opportunities. He called for the sector to step up and address the problems they face, with government’s support.
Godlimpi stressed the importance of the Eastern Cape economy growing beyond its current operations, suggesting that businesses should aim for large scale operations. He further highlighted the importance for public policy makers to support the growth of businesses to create employment and defend industrial capabilities.
He added that the strategic outlook and growth potential of the East London Industrial Development Zone, highlight global headwinds and technology transitions affecting automotive manufacturers.
The engagements and visits to different businesses based in the zone covered logistics, port infrastructure, energy costs, tariffs, funding and the potential for solar PV and battery plants.
The Deputy Minister of Trade, Industry and Competition, Mr Zuko Godlimpi and MEC for Economic Development, Environmental Affairs and Tourism in the Eastern Cape, Ms Nonkqubela Pieters visiting the East London Industrial Development Zone in KuGompo City, Eastern Cape.
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