South Africa’s automotive industry has received a significant investment of R9.5 billion through three major deals. These investments will have a transformative impact on the sector and contribute to the country’s economic growth.
- The National Association of Automotive Component and Allied Manufacturers (Naacam) has pledged R4.8 billion to enhance the automotive components sector. The investment will be implemented over the next few years and will support the development and growth of local manufacturing capabilities.
- Stellantis, a global vehicle producer, plans to spend R3 billion to establish a new factory in Coega, Eastern Cape. The factory will focus on manufacturing a one-tonne bakkie (pickup truck) and is expected to create employment opportunities for around 2,097 people in the province.
- Dunlop, Africa’s largest tire producer, has announced a R1.7-billion upgrade to its Ladysmith-based tire plant. The investment aims to enhance the plant’s production capabilities, increase efficiency, and align with global sustainability goals.
- Stellantis’ investment in the Coega factory includes plans to invest over 500,000 hours in training and skills development for local teams. This initiative will help raise the standard of expertise in the automotive industry and support the growth of a skilled workforce.
- The investments highlight South Africa’s attractiveness as an investment destination for the automotive sector. The country’s strategic location, well-established infrastructure, and supportive government policies make it an ideal choice for automotive companies looking to expand their operations.
- These investments will not only boost the automotive industry but also have a positive ripple effect on the economy. They will create job opportunities, stimulate local businesses, and contribute to the country’s GDP growth, fostering economic development and prosperity.