THE Automotive Business Council in a strategic collaboration with Old Mutual, brought together captains of industry, government stakeholders, and organised labour at a highly anticipated and well-attended event, dubbed “Drivers of Change,” to discuss transformation beyond compliance. The event’s mission was to explore how the industry can meaningfully collaborate with other role players to progressively accelerate meaningful transformation that would support the industry’s important role it plays in the local economic landscape.
The South African Automotive Masterplan 2035 (SAAM35) is a key primary driver for industry growth and development, with clear objectives such as localisation which aims to increase local content in locally manufactured vehicles to 60%, widen and deepen value addition within the sector, and double employment opportunities within the auto value chain.
Another key strategic objective of the SAAM35 is industry-wide transformation, which seeks to enhance employment equity at all levels, increase the involvement of black-owned entities in T2/3 (Tier 2/3), dealerships, and across other auto ISPs (Independent Service Providers). Additionally, SAAM35 further highlights the importance of technology and skills development, with objectives to invest in new technologies, coordinate skills development efforts, and ensure cleaner fuel quality that meets international standards.
CEO of BMW Group South Africa and chairperson of the Executive Oversight Committee Workstream on Transformation, Peter van Binsbergen, acknowledged the varying compliance levels among the seven locally manufacturing Original Equipment Manufacturers (OEMs). He said, “the industry has set ambitious targets to improve compliance levels and accelerate transformation efforts and all the seven OEMs have achieved Level 3 or better compliance requirements”.
“However, supplier transformation is still a challenge, with 38 multinational suppliers in the approval phase of an Equity Equivalent Investment Programme (EEIP) through the Automotive Industry Transformation Fund (AITF) facilitated for approval by the Department of Trade, Industry and Competition. OEMs will continue to support their suppliers to enhance compliance and promote transformation”, Van Binsbergen said.
During the Thought Leadership Discussions, three crucial themes were addressed namely:
- financial inclusiveness and mobility for the poor;
- localisation and the development of new black industrialists; and
- skills of the future for the automotive industry.
The first session revolved around promoting financial inclusiveness and enhancing mobility options for marginalised communities, particularly the poor and economically disadvantaged. The panel explored innovative financing models, public-private partnerships, and collaborative approaches to make mobility more accessible, inclusive, and affordable. Discussions centred on breaking down barriers and creating opportunities for the poor to access transportation services.
The second session focused on the significance of localisation and the development of new black industrialists within the automotive industry. The panel discussed the challenges faced by aspiring and existing black entrepreneurs and manufacturers, seeking to identify strategies to overcome barriers to entry and associated challenges. Success stories, best practices, and policy recommendations were highlighted, aiming to foster and accelerate the growth and sustainability of black-owned manufacturing businesses.
The third and last session focussed on the evolving skills required within the automotive industry, given emerging technologies, automation, and digitisation. Experts examined the changing occupational profile of the industry in South Africa and discussed strategies and initiatives to upskill and reskill the workforce. The aim was to ensure that individuals are equipped with the necessary skills to meet the demands of the future.
The event not only provided a platform for discussions but also facilitated networking opportunities and knowledge-sharing among industry professionals, policymakers, and experts. Participants exchanged ideas, shared experiences, and identified actionable steps to foster a more inclusive, sustainable, and transformative automotive sector. As the event concluded, industry leaders emphasised the need for continued collaboration and innovation. Moving forward, the industry is committed to further exploration and implementation of strategies that address variables such as localization, mobility, economic growth factors, human resources development, and others. This collective effort seeks to foster a more inclusive, diverse, and transformative automotive industry, driving economic empowerment, job creation, and social progress.
