The South African automotive industry is fully integrated into the global automotive environment, deeply entrenched in international supply chains, and dependent on foreign investment. Changes in technology are at the core of the transition to the vehicle of the future, which is primarily linked to electrics and electronics, connectivity, safety, environment and fuel efficiency. Successes have been influenced by different factors, including commitment to innovation, R&D capabilities, large and extensive supply chains, and large and global production capabilities. The COVID-19 pandemic, as well as the presence of industry disrupters have accelerated the OEMs’ focus and adoption of new technologies. Domestic automotive component suppliers need to meet the increasing environmental pressures when selling their products into national and international OEM supply chains. The Automotive industry has invested R8,8 billion aggregate Capital expenditure in 2021, the second highest annual figure on record with a breakdown of production facility and local product of R4,9 billion, land and building at R3,6 billion and the support infrastructure and R&D at R250 million.
Extensive investment continues in the new wave of technology and productive processes that demand new skills and complex problem-solving abilities. The changing economics of production and distribution, along with shifts in consumer demand and the emergence of smart products, are pushing manufacturers to explore radical new ways of creating value. Since there is a significant need for manufacturers to reinvent the car-buying experience, OEMs currently offer the greatest product choice the market has ever seen. Equally, customer expectations for reliability and performance have never been greater.
