Segmentation
 • Automotive components
 • Light vehicles
 • Medium vehicles
 • Heavy vehicles

Vision
To create a viable, internationally competitive local automotive industry, capable of sustained growth.

Production Capacity
Over all employment in the South African automotive industry has grown during the period 1993-1996. It is the fifth largest employer within the manufacturing sector and it is also the largest contributor to total manufacturing production. The Motor Industry Development Program (MIDP) took effect in 1995. Assistance will be gradually reduced to the year 2002. One of the main aims of the MIDP is to develop an internationally competitive and growing automotive industry which is able to make a greater contribution to the economic growth of the country by increasing production, employment and achieving an improved sectoral trade balance.

Imports
Automotive industry imports declined by 9% in the first semester of 1997, compared to the first semester of 1996. This represents 13,9% of total manufactured imports.

The top seven countries of origin of imported automotives for the first semester of 1997 were: (in order of descending volumes) 1) Japan2)Germany
3) UK4)USA5) Brazil6)South Korea7)Spain.

Exports
Automotive industry exports increased by 64,3% in the first semester of 1997, compared to the first semester of 1996. This represents 4,7% of total manufactured exports.

The export market for automotive components, with the exception of leather seats (98% of which go to Germany), is extremely diversified in terms of both products and countries. The bulk of Sounth African exports comprise components. Germany is by far the largest export market for components in Europe. Africa, especially Zimbabwe, also offers a significant market for components as well as an important market for light and heavy commercial vehicles.

Investment
The automotive industry has been one of the main recipients of foreign direct investment since 1993. Most of the investments are directed at expanding production for the export market. In recent months several assemblers have secured contracts worth several hundred million rands. Several major assemblers have aalso announced sizeable investments in natural fibre projects. The products will be employed by Mercedes Benz and others in the manufacturing of environemnt-friendly vehicles.

Export Promotional Assistance
The DTI will cooperate with all stakeholders in the industry to:

•	Develop and refine a strategic export development plan for target markets, build partnership relationships with consultative groups and investigate and promote the idea of establishing an export council
•	Develop an export culture and promote automotive exports
•	Organise export and investment promotion seminars in South Africa and abroad
•	Organise inward buying missions (from priority markets) and outward trade missions
•	Participate in local and foreign automotive exhibitions
•	Distribute articles and other information in the local and foreign media as well as on DTI's Internet Web page.