Government must be “militant” in compelling automakers to 60% local content
15 July 2026
Government must be “militant” in compelling automakers to 60% local content
The National Association of Automotive Component and Allied Manufacturers (NAACAM) says Government must compel international automotive manufacturers to increase local content in South African-built vehicles to 60%.
The South African Automotive Masterplan (SAAM) 2035 is currently under review because at this rate, it will highly unlikely achieve its target to grow local manufacturing content to 60%, creating 224 000 jobs.
Renai Moothilal, Chief Executive Officer of NAACAM, in a MISATV interview with MISA Spokesperson Phakamile Hlubi-Majola, said he believes localisation is the most powerful lever for growing the domestic economy, creating jobs and developing local skills, because component manufacturing carries the deepest employment in the automotive value chain.
Moothilal pointed to Brazil, Thailand and Turkey, where Governments set binding terms for original equipment manufacturers (OEMs). In those markets, meeting state-set localisation requirements is not optional, but a condition to being allowed to sell vehicles there.
“We should not be apologetic about it. Localisation is effectively ensuring that you get significant value added from the OEMs. The localisation global norm is 60%. In South Africa we have been stuck at 40% and we deserve more. OEMs in South Africa get a lot of support from the state and working class. We feel we should be militant. 60% is a target in the Masterplan.”
According to Moothilal the target only exists on paper and lacks political will to ensure that it is achieved.
MISA, the majority trade union in the retail motor industry, representing 79 000 members, supports NAACAM’s view. Creating sustainable decent jobs is at the heart of the Masterplan.
“With OEM’s producing locally receiving substantial incentives from Government, it is not unreasonable to ask they commit to creating real manufacturing job,” says Martlé Keyter, MISA’s Chief Executive Officer: Operations.
MISATv will continue to give a platform to the leaders shaping the future of the motor industry.
Click here to watch this episode: https://youtu.be/y744NO_ts3Y
Issued by Sonja Carstens, Manager of MISA’s Media & Communication Department, on behalf of the Union.
For press enquiries, contact Hlubi-Majola at 083 367 6417 or email [email protected].
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