South African President Cyril Ramaphosa reaffirmed his government’s dedication to transforming the country’s automotive industry, acknowledging both the challenges and opportunities this transition brings. Speaking at the South African Auto Week, held from Oct. 15 to 18 under the theme ‘Reimagining the Future, Together: Celebrating 100 Years of Automotive Heritage,’ Ramaphosa emphasized the sector’s crucial role in the economy.
In his keynote address, Ramaphosa highlighted that 2023 marks a century of vehicle manufacturing in South Africa, noting that last year the industry contributed 20% of local manufacturing value and 15% of total exports. “The auto sector continues to be one of the star performers of our economy. It makes a significant contribution to our gross domestic product,” he said.
Ramaphosa also highlited the industry’s employment impact, stating that around 116,000 people were employed in vehicle and component manufacturing in 2023, with nearly 400,000 working in dealerships and repair shops.
As the world moves towards decarbonization, the president recognized the challenges and opportunities for South Africa’s automotive industry. “Even as the journey to net-zero poses a challenge for the auto industry, there is at the same time immense opportunity,” he said, urging the sector to embrace electric vehicles (EVs), new energy vehicles (NEVs), and sustainable fuels.
He stressed the government’s focus on promoting cleaner, more sustainable practices in partnership with the private sector. “We are committed to working hand-in-hand with the private sector to promote the production of new energy vehicles and the development of the necessary infrastructure to support them,” he added.
Ramaphosa outlined plans for industry reforms, including modernizing the freight sector, upgrading logistics, and developing a comprehensive electric vehicle policy with tax incentives for manufacturers and consumers to support the local growth of EVs.
The South African Auto Week brought together industry leaders, global manufacturers, investors, policymakers, and journalists to discuss the future of the continent’s automotive industry.
Ramaphosa concluded by reaffirming his administration’s commitment to transforming the industry, ensuring it meets climate targets while maintaining South Africa’s role in the global automotive market.
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