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Reuters reports that SA has secured commitments from Chinese and Indian car companies to upgrade their semi-knocked-down (SKD) vehicle assembly operations to full-scale manufacturing, Department of Trade, Industry and Competition (DTIC) Minister Parks Tau advised on Thursday.
The government is currently in talks with multinational carmakers who have SA factories on ways to safeguard the industry’s future as it navigates declining production volumes, stiff competition from China, tariff uncertainty and an expensive shift to electric vehicles. Automotive leaders warned on Wednesday at an annual automotive conference that if SA did not protect its industry from imports, it risked driving deindustrialisation in the country. Speaking following recent engagements with industry players in China and India, Tau told delegates at the conference “in both those markets, the companies that have SKD operations in SA have committed to transition to CKD [complete knocked down]”. The SKD manufacturing technique involves turning partially assembled kits into finished vehicles, while CKD puts together cars from parts delivered to the site.
Tau said the government’s role would be to support companies in reaching full production capability, which would not only strengthen SA’s industrial base but also position the country as a manufacturing hub for the continent. The minister said discussions with other investors in China and India had also yielded interest in either partnering with existing car manufacturers to use excess capacity or building new factories in SA.
- Read the full original of the report in the above regard at BusinessLive
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