SA automotive sector eyes R30bn boost through revival of local content programme

MINISTER of Trade, Industry and Competition (the dtic), Parks Tau, has announced the revival of the Automotive Production Development Programme (APDP) in a bid to offset the impact of 30% tariffs imposed by the United States on South African imports.

- YOGASHEN PILLAY

The programme seeks to increase local content by 5%, a change that could unlock R30 billion in new procurement for the industry, more than the R4.4bn US export market.

Tau was speaking on the opening day of the National Association of Automotive Component and Allied Manufacturers (NAACAM) 2025 show on Wednesday.

“As the cornerstone of our manufacturing economy and contributing 5.2% to GDP and 22.6% of industrial output, this industry faces intersecting challenges that demand urgent collaboration,” Tau said.

“Yet within these challenges lie transformative opportunities to redefine and leverage our global competitiveness.”