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Vehicle manufacturers have developed today’s vehicles with enhanced safety systems and many important safety features, making new vehicles safer than ever.

Industry evolution is punctuated by endogenous or exogenous events that define how industry develops. Transformation as an industry license to operate took a multi-layered stage for the automotive sector:

  • The industry went through an era of ferment, where locally manufacturing OEMs were embracing their role and prerogative to industry transformation;
  • Then the industry convergence towards the new, with the development and implementation of the Automotive Industry Transformation Fund (AITF); and
  • The last stage of the process was creating a stable structure, which is the new normal for the automotive industry around transformation.

Understanding how different sources and patterns of transformation influence competitive heterogeneity is an important focus for a transformation strategy. Reflective of the efficiency of the strategies employed by the sector is evidenced below, with all locally manufacturing OEMs now fully meeting APDP2 requirements to be at Level 4 or better by December 2022.

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