Employment & Skills
A key summary of the SAAM 2021-2035 objectives is as follows:
- Grow South African vehicle production to 1% of global production by 2035;
- Increase local content in South African manufactured vehicles to 60%;
- Double automotive employment in the supply chain;
- Improve automotive industry competitiveness levels to that of leading international competitors
- Transformation of the South African automotive value chain; and
- Deepen value-addition within South African automotive value chains.
The automotive sector recognises that the SAAM vision will only be realised if the six development objectives are met. Achieving the SAAM objectives will require careful coordination and a close working relationship between government, the private sector and organised labour. Six industry development pillars have been identified as being critical to the realisation of the SAAM. The six pillars relate to:
- local market optimisation,
- regional market development,
- localisation,
- infrastructure development,
- industry transformation, and
- the development of industry-required technologies and skills.
The total investment approved since the inception of the AIS in June 2010 until the end of 2023, amounted to R108,6 billion, while the sum total of incentives approved since inception amounted to R28,9 billion. Since inception, 710 projects have been approved under the AIS, creating 28 891 additional jobs. The DTIC implemented a change to the AIS guidelines in 2017, applicable to all new applications approved from 1 September 2017, which requires applicants to maintain base-year employment levels throughout the entire incentive period, from the application stage until claim periods.
