Funding transformation

IDC funding enables Black Industrialist to expand operations

- By Joy Balepile

A combination of domestic capabilities, such as free-trade agreements including policy incentives, has helped to create a local world-class automotive assembly industry. South Africa's auto industry boasts a local presence of seven international original equipment manufacturers (OEMs).

Last year, Stellantis, which is the world's fourth largest OEM, selling nearly 6.31 million cars/year and owns iconic brands such as Maserati, Peugeot, Fiat, Citroen, and Jeep, among others, announced plans to build a local production facility in the Coega Special Economic Zone (SEZ) located in Gqeberha, Eastern Cape. Chinese automaker BAIC has started production of vehicles at its plant in Gqeberha, while Indian Group Mahindra is currently conducting a feasibility study on opportunities to establish a production plant in SA.