OVERVIEW
Automotive and components The major marques are investing in new models.
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ll of Gauteng’s large automobile manufacturers are investing in new model production. The most recent outlay announced in April 2019 was by Nissan, which will use its Rossyln plant to produce the Navara pick-up vehicle. A second shift of workers will be needed to cover the new vehicle (adding to the two bakkies already made at the site) and the total investment will be R3-billion. Other major investments include: • R3-billion by Ford at Silverton, to produce the Ford Ranger (which broke its own export records in 2018, with 68 364 units) • R6.1-billion by BMW at Rosslyn for the manufacture of the new BMW X3 model • R260-million by BMW on an expanded campus at Midrand, comprising head office, financial services, centres for training and IT, a restaurant and a gym • UD Trucks, a part of the Volvo group, will assemble the Croner heavy commercial vehicle at Rosslyn. Gauteng is also home to a strong automotive components industry, together with several bus and truck assembly plants. These include Scania, TFM Industries and MAN Truck and Bus South Africa, as well as the Chinese truck manufacturer FAW, which owns an assembly plant in Isando. Beijing Automotive Works (BAW) assembles taxis at Springs and has committed (with its partners) to investment of R250-million. Armoured cars are also produced in Gauteng. The Paramount Group has signed a contract to supply the United Arab Emirates with its latest armoured personnel carrier, the Mbombe 4. In 2019 the defence and aerospace group also announced the creation of Paramount South
ONLINE RESOURCES Automotive Industry Development Centre: www.aidc.co.za National Association of Automobile Manufacturers of South Africa: www.naamsa.co.za National Association of Automotive Component and Allied Manufacturers: www.naacam.co.za
GAUTENG BUSINESS 2019/20
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SECTOR HIGHLIGHTS The Paramount Group has established a South African subsidiary. Africa so that it can participate in the local market. DCD Protected Mobilit y manufactures armoured cars in Boksburg, which are branded as Vehicle Mounted Mine Detectors. In nearby Benoni, BAE Systems OMC designs and manufactures protected vehicles. The Automotive Industry Development Centre (AIDC), the City of Tshwane and the Tshwane Economic Development Agency (TEDA) are collaborating on a strategic project to boost the sector with a focus on infrastructure. Incentives are available to firms and investors within the automotive industry. The National Department of Trade and Industry (dti), working together with the National Association of Automobile Manufacturers of South Africa, has set targets for 2035 to increase production to 1% of world volumes (which would mean 1.4-million more vehicles made in SA), increasing local content and doubling employment and blackowned businesses in the sector.
