Chinese imports will decimate local auto manufacturing industry – AA
The current rate of vehicle imports from China will decimate the local vehicle and parts manufacturing industry, warns Automobile Association (AA) of South Africa CEO Bobby Ramagwede.
Addressing the Automechanika CEO Breakfast held in Cape Town on Tuesday, he said that the domestic automotive industry was “in big trouble” as the exports and local sales of South African-made vehicles were in sharp decline.
Direct automotive manufacturing contributes about 3% to South Africa’s GDP.
Ramagwede said South Africa could not afford to lose this contribution to its economy, along with the multiple downstream benefits derived from local manufacturing.
He added, however, that South Africa could decide to move to an import-only automotive market – "I have nothing against it" – but that policy makers should then move quickly to make this decision, instead of the current inaction visible within the marketplace.
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