Big investments coming to the auto sector in 2021
The National Association of Automobile Manufacturers of South Africa (Naamsa) is anticipating another very good year of capital investment commitments by automotive original equipment manufacturers (OEMs) in South Africa in 2021.
Naamsa CEO Mikel Mabasa said on Tuesday it is anticipating that a number of automotive OEMs will definitely be considering some capital investment projects in South Africa this year, including a Chinese heavy commercial vehicle manufacturer.
“I don’t want to steal their thunder but there is a major Chinese company, which is going to produce and manufacture heavy commercial vehicles in the country this year.
“We are hoping that those announcements will be finalised and when they are ready, we can allow them to make those announcements,” he said.
Record year
Mabasa’s comments follow Naamsa this week releasing its quarterly review of business conditions in the new vehicle manufacturing industry, which revealed that total capital expenditure by the major vehicle manufacturers reached its highest level on record at R9.2 billion in 2020.
“The continued high levels of capital expenditure are due to investment projects by manufacturers in terms of the Automotive Production and Development Programme [APDP], which are normally spread over multiple years and linked to higher levels of production for export markets,” he said.
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